"Potatoes are a very energy-intensive crop. Right now, farmers will spend a lot of money just to plant it," says Aiga Kraukle, chairwoman of the Union of Potato Growers and Processors. Despite rising costs, planting is expected to continue. "Those in this business don't have much choice. They have already set aside money for seeds; what will they do with them now? At the same time, this is an opportunity for them to earn in the fall. Potatoes require a lot, but they also give a lot," Kraukle says.
She indicates that home gardening is unlikely to increase. "There may not be a big boom. We see how this is happening this year due to the huge harvests in Europe. They have increased their acreage, and there were excellent conditions for an ideal harvest, which has led to a massive oversupply. Cheap potatoes have come to us. And now the [buyer] thinks - if I can buy it for US$0.20 per kilo (19 cents) at the supermarket, why should I bother?"
According to the union, seed potato prices have increased by about 5 per cent this year. At the same time, potato consumption has been declining, while volumes directed to processing, including chip and starch production, are increasing. These volumes are typically sold at fixed prices.
Farmer Ilgvars Kruminsh comments on the outlook: "No one knew that the war would start, and no one knows when it will end and how it will ultimately affect prices. Whether it is speculation by fuel traders lasting several months or it will have a long-term effect - perhaps we will see this by Midsummer's Day."
Kruminsh indicates that the new season may be challenging, but adds that the situation remains unclear. According to him, the current market can be described as uncertain.
Source: News Inbox
