Potato Prices & Commentary

Ex-Farm Potato Prices reported to IFA

Consumption and sales remain buoyant this week. There are reports that merchants are making enquiries for extra stocks in particular Golden Wonders and prices remain firm. Most stock is now lifted across the country, with less than 5% remaining in some parts. Growers are also reminded to not rule out supplying the peeling market with suitable stock at this time.

Reports indicate that exports of Cyprus winter crop have now ceased following very wet weather. Some growers are stating that it is the heaviest rain they have seen in their lifetimes. Crop which will be lifted     from now on will be used on the home market or exported to Greece.

In the U.K. overall demand appears to have quietened over the past week. Chipping markets in particular have seen ‘below-average’ demand as retail sales in chip shops and restaurants see seasonal declines for the New Year.  Continued reports of quality issues persisting in recently-lifted material.

Ex-Farm Potato Prices reported to IFA

Consumption and sales remain stable this week in contrast with a normal lull for the first weeks of January. Growers are reporting that orders are reasonable, wet cold weather conditions most likely driving sales. The majority of the main season crop is now lifted with an estimated maximum of 5% remaining in the ground.

Farm gate prices are under some pressure in the wholesale market. Producers need to realise that further price reductions from current levels will not increase sales. Farmers must remain patient like any other year.

In the U.K. there has been an increase in the reports of stocks breaking down in store this week, from crops that were harvested in adverse conditions. Prices rose over the Christmas period into the New Year, it’s a question whether it was due to high quality material or a short term-demand.

In terms of exports, reports indicate that strong demand continues in the Canaries. Buyers are looking for sound material, free from soil adhesion and it has become noticeably harder to find suitable stocks close to ports over the last three weeks.

Ex-Farm Potato Prices reported to IFA

As expected, demand was strong over the Christmas period with many reports of an increase in sales on last year. The beginning of January often sees a lull in sales as a result of the Christmas demand however, orders continue to remain reasonable this week.

Yield dig figures show an increase on last year however less than 2017 levels. 2019 harvest season will be recorded as reasonably yielding, relatively high over the 8-year trend.

These figures however do not show that we had the 2^nd lowest planting year ever (by area) and the immense difficulty in harvesting this season. It is likely that overall production figures will not be dissimilar to last year.

In the U.K. in the run-up to Christmas many processors and packhouses were working off contracted material, limiting any uplift of free-buy material trade. Movement to the Canaries continued over the Christmas period and prices remain firm with sellers trying to push values higher at any opportunity.