Chicory market does not look promising

Chicory prices are currently under a lot of pressure. According to Hein Buedts, this mainly has to do with the abundance of new carrots, "For the next few months it does not look good, unfortunately. While producer prices were well above one Euro at the end of November, prices are now well below one Euro. The decline in price started at the beginning of December, and the low point has been reached."

Surplus

Hein says that carrot yields have been very high in terms of weight, which has created a large surplus on the market, "The cause of the current situation is twofold: on the one hand, we had mild weather which allowed the carrot harvest to grow well, and on the other hand, we had high yields from the new harvest. Retailers have promotions going, but they are not making enough of a difference. There could be a small upswing around Christmas, but in general the mood has been set for the upcoming months."

Something that has been bothering Buedts for years is the fact that the chain is hardly regulated, "Although producers and traders have been discussing these matters for years, there is still no market regulation on the production side. Everyone in the chain does what they want, without considering the implications for the market place. In Belgium, producer organizations do not agree on a limit to production, and forget about France and the Netherlands. This should be settled at the European level," says Hein. "Although most growers are for minimum prices, a regulation at the European level is unlikely. This is mainly because of disagreements between producer groups."

For more information:
Hein Buedts
Buedts bvba
Soeteweystraat 5
B-3120 Tremelo
Tel. +32(0)16 53 28 42
Fax +32(0)16 53 63 60
info@buedts.be