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The movement on the potato market mainly comes from the lower end of the quality spectrum. Especially the prices for Fontane are pulling ahead. This is reflected in the DCA Spot Price for French Fries Potatoes.
In the Netherlands, we still do not have our own official potato price index. The fact that the parties of PotatoNL still have not reached an agreement is becoming increasingly concerning. We have already missed the boat for the off-season period, and it seems we are also at risk of missing it for the second half of the season. Fortunately, the other countries of the EU-4 have prices on the table.
After Belgapom raised the price of Fontane from €12.50 to €15, Viaverda/Fiwap also increased the lower end and set prices between €15 and €17 last week. RNM from France also came up with an increase for Fontane, adding €2 to reach €15. Innovator increased by €3 to €21 in France. Reka from Germany kept prices stable last Friday, setting €16 for Fontane, €21 for Agria, and €25 for Innovator.
Quality is rewarded
The fact that Innovator is leading may be quite telling for the current potato market. Whether the price is high enough after a (locally) very challenging growing season is, of course, up for discussion. But with a €10 difference between Fontane and Innovator, the processing industry clearly shows willingness to pay a nice premium for quality varieties.
The DCA Spot Price for French Fries potatoes has increased by €0.75 to €17.36 per 100 kilograms. The range is relatively wide, with an average input of €20.25 from Germany and €15 from France.
If we continue the trend in the Spot Price to the Spot Price for French Fries Potatoes Forward (SFF), it is noticeable that the prices at the current level lag behind the contracts. The average contract price in the Netherlands for Fontane delivery in week 17 is €27.12 and for weeks 26-27 it is €29.28. The SFF remains at €20.36 for delivery in April.