Spain: Price fall for European potatoes
"The main recommendation is the signing of model contracts" for the 3,200 farmers in the community dedicated to the cultivation of potato, stated the local government in a public note.
This contract is "the only tool to assure producers of the price they will get for their productions before the harvest".
Because of it, "it's recommended to reduce uncertainty in prices by making contracts with buyers, as the more production under contract, less insecurity will be felt in order to get benefits".
"The contract defines variety and starting date, avoiding situations of over-offer that cause price drops", explained the local government.
Last campaign's harvest saw France, Germany, Belgium, the Netherlands and the United Kingdom, joining in the Association of Potato Producers for North western Europe, with a total of 26.6 million tons, some 11.4% more than last year's, "the highest in the last ten campaigns".
Moreover, exports to Eastern European countries that "stimulated raises in prices during the 2010 campaign, didn't happen in the last campaign, causing a fall in prices all over Europe", the note stated.
Source: ABC