"We're still suffering from the consequences of the 2022 season's deficit, with overlapping seasons," explains Francisco Moya, director of the Vitalis network and chairman of the CNIPT, describing the state of the potato market in France this summer.
Tensions caused by a shortfall in the 2022 season
Although all French potato basins are now in production, demand is still outstripping supply, resulting in a tight market and unabated prices. Several factors have contributed to this situation: "First of all, we've started the 2023 season with very little stock from the previous harvest, since 2022 was a loss year. As a result, we're still chasing volumes to meet demand."
Planting delays in Spring 2023
This phenomenon was exacerbated by a delay in 2023 plantings due to bad weather. "In France's biggest production basins, we're talking about twenty days later than usual. The climatic impact on these large-scale crops continues to have far-reaching consequences, both in terms of volumes and product quality."
Growing needs for a thriving processing market
Third factor: the processing industry, particularly the French fries industry, is experiencing strong demand. These needs have been strengthened by the growth and expansion of processing plants. "This industry has also been impacted by the lack of product availability. They are also looking for potatoes, adding to the demand. The result is a situation we've rarely seen in July/August, with Spanish products imported for industrial use. This is an unusual development that could lead to a deficit for these countries as well."
Bad weather boosts demand
On top of this, demand has been further boosted by a rainy summer, prompting the consumption of potato-based dishes rather than summer salads. While for the time being, all the potatoes produced in France are sold immediately, the gradual increase in production over the coming weeks should make possible a switch to stored potatoes, thereby gradually rebuilding stocks.
A campaign depending once again on weather conditions
There are two main possibilities: "If production is normal, supply will be under pressure from April/May onwards. But if the climate isn't favorable, this pressure could prevail throughout the season. It will all come down to the weather. For now, however, everything's going well. The delay experienced at the start of the planting season and the lack of water can easily be made up. I'm not worried about running out of products, and I don't expect any panic in the industry. However, the fact remains that we're currently in an active market, with dynamic demand for both fresh and industrial products. So we might as well look on the positive side: for growers, it's better to have stronger demand and tighter supply than the opposite. The difficulty in analyzing this campaign is that we are experiencing a rather unusual situation, brought about by the effects of climate change. As a result, we don't have enough benchmarks to enable us to have a clear view of the rest of the campaign and to deepen this analysis."
For more information:
Francisco Moya
Réseau Vitalis
Tel: +33 3 87 92 42 33
[email protected]
