Mercado: GLOBAL MARKET OVERVIEW POTATOES

It has led to higher prices. In the Netherlands, a major potato producer, crop yield remains uncertain with extreme waterlogged conditions in fields across many growing regions. This follows prolonged rainfall affecting the Netherlands for months that has also impacted potato farming.

Conditions are said to be similar in Belgium’s potato fields. Switzerland is in the same boat, with 20% of the harvest already unsaleable. The constant rain favours fungal infections in Swiss potatoes. Rot causes losses for the majority of producers in that country. In Sweden, they are seeing the highest potato prices ever. In May, it was really warm, but that changed with no sun in sight this summer with a lot of rain and colder weather, which led to the decay of the potatoes in Sweden. Spain is seeing record prices, with late rain that caused a 30% decrease in the Seville harvest. Spanish potatoes are still having record prices at the moment due to a temporary product gap since May-June in Europe. In the north of South Africa, frost damage with overnight winter temperatures of -8 C in some places, has led to widespread damage of over 2,800 hectares. A loss on the potato crop amounting to R470 million (almost 24 million euros) is mentioned.

On the other hand, other countries are reporting good yields. Germany has low consumer demand for domestic early potatoes. All German early potato regions currently have a sufficient supply of skin-firm ware potatoes. In Austria the early potato market tends to remain tense. The harvest is in full swing nationwide with mostly average to good yields,. Italian growers are seeing a return to normal yields after last year’s extreme weather conditions. However, higher temperatures in Italy make the potatoes that are harvested now more fragile and present risks during storage.

Netherlands: Yield remains uncertain

The prolonged rainfall affecting the Netherlands for months has also impacted potato farming. It has resulted in delayed planting or even replanting of some fields, leading to expectations of a delayed harvest. Potato traders report that the extreme waterlogged conditions have varied regionally, with some fields thriving while others are experiencing significant crop losses. As a result, the harvest volume remains uncertain for now. Additionally, the remaining growing season could still make up for losses, although disease pressure, particularly from Phytophthora, remains high and requires intensive management efforts.

These factors are influencing prices. Despite sufficient early potato volumes by mid-July, prices have remained high for an extended period, possibly too high for export markets. However, potato traders anticipate prices to decrease as the potato volume continues to increase daily.

Germany: Low demand for domestic early potatoes

All German early potato regions currently have a sufficient supply of skin-firm ware potatoes. Meanwhile, demand is currently very low due to the holidays. The prices have been adjusted for seasonal reasons, but are still at very high levels.

Sufficient peeled potatoes are available. Peelers are using contracts and are currently hardly asking for extra raw material. Prices are well below the level for firm-skinned early potatoes. Foreign early potatoes lost market share, but were still convincing in terms of quality.

Austria: Early potato market tends to remain tense

The situation on the Austrian early potato market tends to remain tense. The harvest is in full swing nationwide: With mostly average to good yields, the supply is correspondingly plentiful. In addition to the early varieties, more and more later varieties are also available for harvesting. As a result of this large supply, greater emphasis is therefore being placed on skin firmness. Sales of early potatoes in the food trade remain at a level influenced by mid-summer temperatures and the holiday season. Exports are possible to a limited extent. Meanwhile, producer prices are under slight pressure. Currently, prices are around EUR 30-35 per 100 kg.

Switzerland: 20% of the harvest already unsaleable

The constant rain favours fungal infections in Swiss potatoes. Rot causes losses for the majority of producers, which is already estimated at around 20 percent of the total volume. These would have to be covered by imports. "The import of potatoes has already been necessary to a large extent in the last three years", says potato trade association Swisspatat.

Sweden: Highest potato prices ever

Potatoes prices in Sweden have doubled and reached the most expensive levels ever, according to a local trader. "We have never experienced such a high price level for potatoes. All the old crop is gone. The price level is double the normal price. It is the most expensive year we’ve ever had. Now in summer we have a lot of rain while in May it was really warm. This led to decay of the potatoes. Potatoes were exported from our country, because of the earlier rains in Belgium and the Netherlands," notes the trader.

Italy: Back to normal yields

The potato harvest began in early July in Emilia Romagna, one of Italy’s top producing regions. According to a trader in the region, yields are back to normal at around 58/60 tonnes per hectare, after falling to 30 tonnes in 2023 due to extreme weather conditions. Wireworm (Elaterid larvae) infestations are relatively low and this has so far reassured growers. The market reacts normally, sometimes a little slowly. "The price for producers is 0.50 euro/kg with the ’consignment stock’ formula," the trader reports. "It is a guaranteed price until December 2024 and applies to first quality, GlobalGAP certified product with a size between 45 and 75 mm. The only problem these days is the high temperatures. Potatoes harvested now are more fragile and present risks during storage. It would be better to harvest them in the evening until the next morning. Some companies are managing to do this, but it is not easy because it is certainly not easy to find available labour and to organise the supply chain.

A Sicilian producer of new potatoes, harvested from the beginning of March to the end of May, had an interesting growing and marketing season. Favourable weather conditions contributed to this, despite the difficulties of irrigation and the resulting energy costs. The product, appreciated for its thin skin and golden yellow flesh, was sold mainly on the Italian market and, after processing, for export. Average producer prices reached €0.70/kg, with an increase of €0.10-0.15/kg for the selenium product. Demand was particularly strong from domestic traders exporting to German-speaking countries. However, Egyptian competition, with a lower price of around €0.10-0.15, also influenced the Italian market.

Spain: Record prices, late rain causes 30% decrease in Seville harvest

Spanish potatoes are still having record prices at the moment due to a temporary product gap since May-June. The early potato season in the South of Spain ended earlier than usual due to a decrease of 30% of the harvest caused by late rains in Seville, where calibers were generally smaller despite the good quality. At the same time, there has been a shortage of long-storage potatoes in Europe since May, which has resulted in much higher exports of Spanish potatoes this year. With such high demand for potatoes and a limited supply after the potato campaign finished in Seville, many growers in Castille Leon have prematurely harvested their earliest varieties to benefit from such sky-high prices. In the coming two weeks Castille Leon harvest will gain momentum and much bigger volumes will reach the markets and the French harvest will kick off, putting an end to the demand of Spanish potatoes. Therefore, prices are expected to adjust downwards and be more balanced in the coming weeks.

South Africa: Big loss on potato crop due to frost damage

Recent exceptional cold in the north of the country, dropping as low as -8oC in some places, will have a significant effect on the winter and spring potato crop.

A loss on the potato crop amounting to R470 million (almost 24 million euros) is mentioned; Potatoes South Africa is still busy surveying the extent of damage. "According to our figures at this stage, it appears that an equivalent of 2,840 hectares were affected by frost damage," says the potato industry organisation. "Losses are estimated at 32% of the crop, representing four million bags [10kg]. To put that in perspective, in 2023, nationally 8 million bags below the long-term average were harvested. Current frost damage represents 50% of that."

A potential increased supply of smaller potatoes over the short-term could put pressure on markets, with an approximate six-week gap in volumes. It’s still too early to make a final verdict on the true extent of the damage; some of the potatoes might yet recover. Additionally, there’s an expectation that the cold isn’t over and that would impact the recovery of damaged potatoes.

It is expected that potatoes will become extremely expensive, with a figure of R200 (10 euros) per 10kg offered by various roleplayers. For the moment, the market is still working its way through existing stock, coupled with weak purchase power (total potato sales were 16% down last week). The average price is still around R60 (3 euros) per 10kg bag.

North America: More storage crop potato supply still available

Idaho anticipates a reduction in 2024-2025 Russet potato acreage. Reports indicate that it’s between 305,000-315,000 acres. Last season the industry had 328,000 acres. Then, in yields, June saw a late frost in parts of Idaho that look to impact potato yields though the bigger issue could be the hail storms that came through. The new crop in Idaho should begin harvest in the third or fourth week of August.

As for storage crop potatoes, most Idaho shippers will run with storage crop until that new crop starts, with some running slightly longer. Other regions such as Washington may be done earlier than that though Wisconsin’s Russet potato storage supply is set to finish the first week in August and then transition to the new crop.

Meanwhile, coloured potato production is underway in regions such as Texas, North Carolina, and Virginia. Generally, more storage crop Russets are available now compared to previous years at this time. As for demand, it has been good and pricing has slowly increased over the past four to five weeks.

Egypt: Exports grow despite limited volume

The potato harvest has ended in Egypt. The export campaign continues with stock from cold storage. According to one of the major Egyptian potato growers, "the stocks are already limited."

After a potato shortage last season, growers anticipated a significant increase in volumes this year due to a substantial increase in acreage. However, volumes have been limited by other factors, including climate, pests, and problems with the supply of good quality seed potatoes.

Demand was overall higher during the entire season. A grower says, "Egyptian exporters have even expanded to new markets such as West Africa." Earlier during the campaign, the same grower reported that volumes shipped to Asia were not impacted by the Red Sea crisis like other crops. Prices for Egyptian potatoes were naturally higher than last season, despite an increase in the shipping costs and delays caused by congestion in Egyptian ports.

There will be no Global Market for the next two weeks, due to our Summer break.

The next topic will be ’Lemons’, to come out on Friday, 9 August 2024.