Netherlans: Potato market collapses
French fry potato prices plummet to price levels where feed potatoes were traded earlier this year. The Fontane listing of PotatoNL plummets this week by 2.50 euros to 5 to 7.50 euros per 100 kilos.
The warmer weather means that many potatoes can no longer be stored. This means that supply is coming onto the market for which there are no buyers. Although prices have already dropped to an extremely low level, it looks like the bottom has not yet been reached.
French fry manufacturers only receive contract potatoes with some potatoes delivered along with them. They are not in the market to buy up free lots. So where on the one hand there is more pressure from the supply side, there is a complete lack of demand.
The Agria quotations have also had to give up a lot of ground due to the low prices for other potatoes. This week, the upper end of the quotation is taking a serious hit. Because the lower end also has to give up something, the average price of Agria drops by 5 euros to 7 to 15 euros per 100 kilos.
Well below contract price
The Belgian Belgapom was the first on Friday with a price reduction to 5 euros per 100 kilos. This applies to free potatoes. The contract price of potatoes suitable for chips climbs in this period towards 29 to 30 euros per 100 kilos. In January and February the free price was still well above the contract price.
The collapse of the market for French fries potatoes directly entails that flake and feed potatoes also yield much less than was the case up to now. The PotatoNL quotation for flake potatoes drops this week by 50 cents to 1 to 5 euros per 100 kilos. This means that flake potatoes hardly do more than feed, for which 1 to 3 euros per 100 kilos is paid.
Fuente: nieuweoogst.nl
