The early new potato harvest is already starting in some areas of Andalusia and Murcia with some very small volumes. Although the season kicked off a little early, the abundant rains this April have been slowing down the harvest.
"We hope to achieve a good harvest rate in early May and have more consistent volumes," says Juan Manuel Coello, director of Patatas Meléndez, the largest producer and marketer of fresh potatoes in Spain, with a 19.1% share and 88 million Euro in turnover. "In general, the yields per hectare will be higher than last year, with slightly more large sizes in Andalusia. The quality also appears to be good," he says.
According to the director of this company, “before the COVID-19 crisis started, we expected an excess supply of French potatoes for fresh consumption on the domestic market, but the truth is that the market is now quite empty. Therefore, the arrival of the new potatoes from Spain is eagerly anticipated, and we expect a good demand both in the domestic market and in the rest of Europe. At Patatas Meléndez, we are increasingly betting on fresh new potatoes, both Spanish and from other origins, because of their culinary qualities.”
Since the pandemic broke out in Europe, potato sales to large and online retailers have increased, although the sector has also taken a big hit from the loss of the Horeca channel and the processing industry.
“In the first week of the state of alarm decreed in Spain, the orders from supermarket chains multiplied by up to four. When the hysteria and food hoarding were over, sales continued to be around 30% higher than usual, since consumers mostly make their purchases in supermarkets. However, we have also suffered significant losses after the closure of the Horeca and the processing industry, and varieties intended for this segment, such as the Agria, will remain unsold. Furthermore, although sales in the wholesale markets started well, they also ended up falling quite a bit. These are different channels with different needs, so varieties that are not sold on one channel cannot be sold on another. Those whose sales were mostly targeted to the processing industry are experiencing great difficulties. Fortunately, our business is diversified across all channels,” says Juan Manuel Coello.
The online channel has also seen a surprising increase in sales. “Before this crisis, potatoes were not a product that was bought online, but now sales through our online store and Amazon are booming. It has been a great surprise and we believe that this trend will continue from now on. This pandemic is changing consumer habits rapidly in the short and medium term and we will have to keep a close eye on them to see how they develop in the long term,” says the director of this company.
Patatas Meléndez recently acquired the Integral Potato SL potato factory, which had filed for bankruptcy. Patatas Meléndez will make a significant investment in these new facilities and maintain the jobs of its workers. “With this acquisition, we are adding another 5,200 square meters to our 24,000 square meters of facilities, which entails an increase in our production capacity of around 30%. Given the current situation, this will allow us to intensify production and guarantee the supply to all our clients.”
As a donation to the fight against COVID-19, the Valladolid-based company recently set up a foodtruck at the Ifema temporary hospital to deliver 800 daily food packs to around 400 volunteers. So far, the firm has also donated 3 potato trucks.
For more information:
Juan Manuel Coello
Patatas Meléndez
T: +34 983 812 920
[email protected]
www.patatasmelendez.com
