Potato prices have rallied in the final stretch of the campaign, carried away by an excess of production in the major European countries, who have filled the domestic market for this product and have caused a "crash" in their quotes. After Andalucia´s early potato campaign, Castilla and Leon (the main production areas in Spain) have virtually completed their mid-season and late varieties. This production continues in other areas like the Basque Country and Galicia, although the initial balance confirms "disaster".
Spain is one of the leading importers of EU potatoes, mostly from France, which
competes directly with the mid-season and late varieties.
For potato sources of marketing and production consulted by EFEAGRO, after the "breath of fresh air" of the previous season this year´s figures are facing "very negative" numbers, which preclude less crops for the new season for southern varieties.
The origin of the low prices can be traced to several factors, some structural but also circumstantial, like the fall in consumption and weather conditions in August and September that boosted production in Europe. In conclusion, the capacity of France and Germany have put into circulation about 350,000 tons of the product,
which has meant a major concentration of supply in a limited period of time and that has hindered its marketing, in an a very sensitive sector.
European potato import prices, and particularly the French, which is the main exporter to our country, has a strong influence on the Spanish market prices, with very poor consolidated commercial structure.
Without knowing the official data, the campaign will end in Spain with a production about 2.6 million tons compared to more than 2.2 million tons from the previous year, according to sector.efe