At the end of the week, the new early potatoes, the Moese Patatten, will once again be harvested at Agra Claessens. While spring is often dominated by asparagus for many, the Moese Patatten are just as popular in the East Flanders region. "Despite the challenges in the potato market, people are already asking when the new potatoes will be available from the greenhouses again. On Friday, we expect to be able to sell the first ones," says Stijn Windey of the Moerzeke-based company.
© Agra Claessens
He is therefore satisfied with the new harvest. "The early potatoes are in good condition and have benefited from a favourable spring without extreme cold. We expect them to appear on shelves for the first time this week. In addition, outdoor crops are also developing well. Any light frost damage in the early stages has now fully recovered and has had no lasting impact on the crop."
"Weather conditions are rather dry at the moment, although this does not pose a problem for now," he continues. "Irrigation is possible on most plots, although it requires labour and organisation. A rain shower would be welcome, especially for soil structure and continued growth, but for field work, conditions are currently favourable. It is actually a start to the season as you would wish every year, although it always remains to be seen how it develops further."
New potatoes in a different segment
And that is, of course, positive, but the new Moese Potatoes are entering an unfavourable market. Do these early potatoes manage to avoid some of the difficulties? "The start of the new potato season remains an important moment every year. So despite the current market dynamics, I expect it to hold up relatively well. Early in the season, new potatoes remain a niche product with their own market. Demand is gradually building."
"Consumers are actively asking about availability. The current spring weather works in their favour in this respect, as it traditionally stimulates consumption and, especially when asparagus is fully in season, asparagus à la Flemish with new potatoes remains a widely eaten dish among consumers and in restaurants. This places it in a different segment, and people will continue to buy them, even though we do always experience some market disruption."
© Agra Claessens
It is no surprise that this is a challenging potato season. For a long time, Stijn remained relatively unaffected thanks to strong relationships with trade partners and direct sales, but he now sees that surpluses are clearly disrupting the market. "Nevertheless, overall, I still cannot complain, despite the low potato prices that are widely discussed at the moment. There are daily reports in the media about growers with surpluses who are struggling to sell their product. At the same time, you see some batches entering the market at very low prices, which can distort the picture and, in some cases, also affect the market, because how do you sell your product when there are free potatoes available nearby?"
Difference between fries and ware potatoes
Still, an important distinction must be made, Stijn points out. "It should be emphasised that the current surplus is mainly in the French fries potato segment. This is substantially different from potatoes for the fresh market. There are clear differences in varieties, taste, and application, so these products are not interchangeable. This means the impact on our company remains limited for the time being. Our sales channels, both through direct sales and via retail and vegetable shops, are stable. These are channels that are not easily accessible to everyone, but the fact that surpluses disrupt the market and put pressure on prices also applies to us."
© Agra Claessens
However, there is no question of structural surpluses in his case, despite what is often reported in the media ahead of Potato Week. "As in every season, some batches remain, but they usually still find their way to, for example, the processing industry. This year, it is more difficult, and certain volumes will hopefully find alternative destinations, such as animal feed. That is not ideal, but it is part of the reality of the sector."
Cyclical
"In that sense, it is also starting to resemble a form of opportunism. Of course, many growers who relied on the free market are facing an extremely challenging season resulting in surpluses," Stijn explains. "But you do not always win in a casino either. On the contrary, previous years were characterised by strong prices on the free market, which were very profitable for some growers. The current situation can therefore be seen as a correction. An additional problem is that growers now have to pay to dispose of their surplus. This is different from previous market downturns."
"There are also many growers working with contracts who have largely secured their volumes. They can usually deliver their product as agreed. The low prices on the free market do, however, have a knock-on effect on new contracts, which are under pressure. This creates a less attractive outlook, but it fits with the cyclical nature of the sector. Market challenges go hand in hand with a promising start to the growing season. As is often the case in agriculture, the final outcome will depend on how the season develops, with each year bringing its own dynamics and opportunities, although the sky is not always the limit."
For more information:
Stijn Windey
Agra Claessens
Bootdijkstraat 23A
9220 Moerzeke, Belgium
+32 472 47 51 38
[email protected]
www.agraclaessens.be
