At the start of the new year, potato prices are still at record lows. "We had prices this low about ten years ago, but not since then," recalls Slave Spaseski, potato wholesaler and owner of Openica GmbH, based at the Berlin Wholesale Market. "There were minimal price increases at the end of the year, but these bring little relief overall. Whether producers or traders – apart from food retailers, everyone along the potato supply chain is suffering from the current market conditions."
The low prices affect almost all cooking properties and varieties, Spaseski continues. "There are special varieties such as Sieglinde, Annabelle, and Leyla from Lower Saxony, which are grown on moorland and for which we can charge a little more. But these are not big sellers." No significant price increases are expected for now. "We have a total of around 20 to 25 percent more volume than last year, which we somehow have to place on the market, and unfortunately, that can only be done through price."
Slave Spaseski (2nd from left) and his team during a visit to the wholesale market by FreshPlaza.de a few years ago.
Europe-wide expansions in acreage and favorable weather conditions have contributed to this year's surplus. Spaseski: "Everything came together a bit unluckily this year. That's not so tragic in itself, but two or three such years in a row would be disastrous for the sector." After this bountiful harvest year, the area under potato cultivation will have to be adjusted to meet demand. "We're not talking so much about the large farms that have to fulfill their volume programs, but mainly about small and medium-sized producers who have speculated on potatoes because of attractive prices. Many of them will pull out again after this year's weak prices."
Onion prices down by a third compared to last year
The situation on the onion market is almost the same, observes Spaseski, who sources most of his onions from selected partners in northern Germany. "Here, too, this year's producer and market prices are significantly lower than in previous years. Currently, yellow and red onions are 30 to 40 percent below last year's level."
Bankruptcies on the rise
Overall, Spaseski and his wholesale market colleagues look back on a difficult year. "Even though we at Openica GmbH are not particularly dissatisfied, business at the wholesale market has been subdued throughout the year. In the catering industry in particular, there are currently many bankruptcies in Berlin and the surrounding area, and for the first time in many years, there are now vacant spaces in the wholesale market hall itself. These are all factors that are having a correspondingly negative effect on the mood on-site," he concludes.
For more information:
Slave Spaseski
Openica GmbH Kartoffeln & Zwiebeln
Berlin wholesale market
Phone: +49 30 390 392 71
[email protected]
www.openica.de
