There is a situation in the potato market that has never been seen before. The difference between the bottom and the top of the market is very large. It is unique that it is half the price with these kinds of prices.
Belgapom quoted Fontane at €15 per 100 kilos on Friday, December 13. A day earlier, a Dutch processor set a tender in the market with €30 for Innovator for delivery in December. This price difference is unprecedented, especially considering that both varieties are used for making fries. Naturally, some price difference can be explained. The supply of freely tradable Innovator of good quality is not large compared to Fontane (where quality is often an issue).
Another factor is that the demand for the end product for the higher segment in which Innovator is used continues to be strong. This is in contrast to the demand in the bulk segment where Fontane is popular. Also, the production cost of Innovator is higher compared to other varieties, especially Fontane. So, in that sense, Innovator has been paid better in previous years, but the current price difference is unprecedented!
Difference in practice less significant
By comparing the current Innovator price with the Belgapom quotation for Fontane and Challenger, things seem to be taken to the extreme. However, Viaverde quoted Fontane at €15 to €20 on Tuesday, December 8, with the note: 'the base price for processing is usually €15,' setting the stage nicely later in the week for Belgapom quoters. A realistic current market price for Fontane with reasonable to desirable quality would be €18 per 100 kilos (source: Transaction App on Friday, December 13) and €20 (source: the same tender from the aforementioned Dutch processor).
With the holidays approaching, the market feels more than 'price-holding' (previously 'firm'), as evidenced by the futures market quotation of the April 2025 contract, which, after a dip at the end of November (€27.50), has risen again to almost a closing price of €29 on Friday, December 13. The positive price development is further supported by other bids in the tender from the aforementioned Dutch processor. As mentioned, €30 is bid for Innovator delivery in December, increasing to €32.50 in January, €35.00 in February, and even €37.50 in March. For Agria for regular fry processing, the bid for both December and January delivery is €27.50, far behind is the bid in the Fontane tender at €20 for December and January delivery, increasing to €22.50 for February delivery.
