Lower-quality potatoes from Poland may not find a buyer, as the potato yield was very high last year, says Łukasz Ostrowicz, member of the board at Polish potato packer Bugaj: "The availability of potatoes in Poland is currently high, and as a result, there are growing concerns that lower-quality potatoes may not find buyers. This situation is driven by the fact that, despite a long-term decline in acreage, the yield last year was very high, exceeding 7 million tons according to official data, which represents an increase of around 20% year-on-year. This was supported by higher yields and increasing professionalization of the sector."
© Bugaj
The fact that so many potatoes are available leads to pressure on the price, Ostrowicz explains. "The oversupply in Europe is creating strong price pressure across the entire potato market. In Poland, additional constraints include structural issues such as fragmented production and limited export opportunities. Furthermore, uncertainty regarding future prices is influencing growers' planting decisions. The sector is addressing these challenges through further professionalization, improved quality control, and the gradual development of export channels. As a company, we're actively working to increase exports of both fresh and processed potatoes in order to better manage surplus volumes."
The potato prices have dropped across the board, according to Ostrowicz: "Potato prices have declined significantly this season across both the processing and fresh markets. Free-buy prices are currently at very low levels due to oversupply and weak demand, while contract prices for the next season are also being reduced, although this is most evident in the processing sector. In some segments, prices have dropped by more than 50% year-on-year. Overall, the market is characterized by strong downward pressure."
"In the coming weeks, no significant price recovery is expected, due to existing stocks and the ongoing market imbalance. However, lower contract prices and a potential reduction in planted area may gradually stabilize the market in the next season. Weather conditions and spring planting decisions will be key factors. In the longer term, improving export capacity will be crucial for strengthening the position of the Polish potato sector," Ostrowicz concludes.
For more information:
Łukasz Ostrowicz
BUGAJ sp. z o.o.
Email: [email protected]
