The potato market is very uncertain. "The big question is whether there will be enough French fries and export potatoes in the coming weeks to close the gap between the old and new harvests. Mother Nature will answer that. This weather holding for the next six to eight weeks or it becoming better growing weather will make quite a difference," says Adrie Kleinjan of Kleinjan's Aardappelhandel in the Netherlands.
"There's much uncertainty about product availability and seed onions' growth and quality. It's certainly a very late start. The heavy rainfall in March and April meant soil conditions weren't optimal and early potatoes had to be transplanted. Those potatoes are growing nicely now, but everything planted in April and May fell behind."
"There are also far fewer early potatoes in southern Europe. The new crop from countries like Israel, Spain, and Portugal are, thus, in great demand and are selling at very high prices. That's noticeable in the export market. With all the availability uncertainties, export customers are inclined to pay more for the old product," explains Adrie.
"We're still sending potatoes to export, local and European markets every day, and expect this to continue for several weeks. Although volumes have been significantly reduced, all destinations are still competing, and, to do so, they had to step up considerably, price-wise."
Adrie does not believe the industry's eager demand will pressurize growers who usually cultivate for the export market. "There will be shifts; that happens every year. For example, there are shifts to more dual-purpose varieties you can export and sell to the industry. At the end of the 2022/23 season, there are growers who cultivate freely, earning higher returns than contracted potatoes. So the market forces are still present; it's trade that has to create price movement," he says.
"This year, many growers are already selling their potatoes at higher contract prices. But the harvest could be disappointing, leading to few potatoes being stored. That will improve the free potato market movement, and growers will have to reconsider what they want to grow next season. Here, the weather remains the merchant. That comes in handy," Adrie concludes.
For more information:
Kleinjan's aardappelhandel
6 Zuidoordseweg
3267 LW, Goudswaard, NL
Tel.: +31 (0) 186 692 900
Email: adrie@kleinjansaardappelhandel.nl
Website: www.kleinjansaardappelhandel.nl