Just taking notes but no market, that is in short the current situation on the potato market. In the Netherlands, we are still waiting for the first PotatoNL listing of the season. In the surrounding countries, prices are being quoted every week.
For example, in Germany (REKA), Belgium (Belgapom and Viaverda), and France (RNM), bulk fry varieties like Fontane are being priced at €12.50 for weeks. In the Netherlands, there is still no clear picture to give based on listings. The current situation is exceptional. Processors do not really need to actively enter the market yet, as there is sufficient supply of potatoes due to the harvest and the flow of potatoes from the field. If you want to actively buy, there are not many potatoes available. As a result, there are hardly any transactions, and the listings seem to be based on thin air.
Search for free potatoes
In the market, but not visible in the listings, Fontane is being bought after a long search for €14 to €15 per 100 kilograms. The same applies to Innovator, which is already being requested from Switzerland. For a free storable batch of good quality Innovator, as well as Fontane - depending on where they need to be loaded - up to €20 per 100 kilograms is paid. This can be seen in the REKA listing where Innovator is priced at €20.
Too few free potatoes
The lack of freely tradable potatoes is increasingly affecting the potato market. Especially this growing season, in large parts of the Netherlands and Belgium (15% below the multi-year average), the hectare yields are not meeting expectations, which should lead to more price dynamics. Growers facing a disappointing harvest first fulfill their contract agreements and then have nothing available for sale. A potential buyer, other than the regular buyer, hardly sees any available batches. When there is hardly anything for sale, no transactions take place, and no price emerges in the free market. As a result, listings that are used for potatoes delivered to processors, like those of Fontane, remain at €12.50 for weeks.
Significant difference within EU-4
It seems that a parallel market is emerging alongside the fry potato flows. Everything that does not go to processors is at least 20% higher in price. The fact that these are small quantities does not diminish these reference points. Also noticeable are farmers who are buyers of potatoes to fill their barns. And it is precisely then that they realize there is nothing for sale. This creates a unique situation for processors. The Netherlands and Belgium have (too) few potatoes and often have few or no free potatoes due to high contract volumes. Where free potatoes are available for sale is in Germany and France. There are (surplus) kilos available there. Since the market there is weak, growers agree to listing prices.
Growers in control
In many cases, blame is often placed on processors, but ultimately it is also the growers themselves who must ensure the sale of the products and thus a good price setting (read: listings). It seems that as the contract price makes significant jumps, the grower is fine with it. It is as if what happens in the spot market is no longer of much importance. The years when prices were not significant are quickly forgotten, assuming that these years belong to the past.
Without being too negative, with a further expanding acreage in the EU-4 countries, supplemented by Poland, and a normal growing season, along with a leveling off of fry sales (as suggested in the industry), the market could show a completely different face. The impact on the development of contract prices can be guessed. In such a market situation, there will immediately be a call for better market functioning. Whether that will happen (again) remains to be seen.
