Potato Prices & Commentary

Ex-Farm Potato Prices reported to IFA

The market continues to tread water however, there are some indications that demand is beginning to pick up and supply is tightening. Ambient store product will finish in the coming weeks which will then limit supply to only cold store material.

The story is similar across in the UK where although demand remains a little lacklustre price have held firm this week. Exports from the UK to Europe have increased which has been taken as a positive indicator by the market. Meanwhile, physical prices in Northern Europe remain strong with some of the weekly indices even showing increases of €6.00/8.00 per tonne. As farmers plan for the planting season they need to review the market outlook. It is likely that planted area across Europe will be similar if not see an increase on 2018 figures which with only average yields would result in a potential over supply situation. Notwithstanding the fact that auctioneers are now doing their usual thing of trying to drive land rental prices higher, producers need to ensure they don’t jeopardise the viability of their crop by paying over the odds for land.

Ex-Farm Potato Prices reported to IFA

There have been no significant changes in the market this week. Merchants are now actively looking for Golden Wonders which reflects the drop in overall production this year due to lower yields and quality issues. Most of the material going into the peeling markets is coming from tare off the washing lines however, there is opportunity to supply primary product at prices up to €380/t depending on quality. There have been some plantings of earlies in the south and south east however the area is very small and has stopped again in the past week. In the UK prices for best quality whites have strengthened slightly while poorer quality material is under slight pressure. On mainland Europe prices remain very firm as it appears all poorer quality stock has been moved on. There is virtually no free buy material available across Europe which will keep prices strong over the remainder of the season. Despite these high prices, countries such as Poland are importing potatoes as their domestic supply is failing to meet demand.

Ex-Farm Potato Prices reported to IFA

The market still remains sluggish, however,all producers are moving product and prices remain steady. Prices for peeling product has eased slightly as some UK stock has become available due to pressure to move stock from ambient stores. Again, it should be stressed that growers should try and supply this market particularly with lesser grade product which reduces the potential for imports. The final analysis of 2018 production has been completed and it reveals an overall drop of 37% or 138,000 tonnes of potatoes compared to 2017. Within varieties there has been a reduction of 37% in Rooster and 47% in whites which represents 84,000 and 18,000 tonnes respectively. Over in the UK the market remains subdued, however with production down 700,000 tonnes and exports heading onto the continent the market remains stable. Planting progress is on schedule in Jersey but has halted in the South west due to wetter conditions. Meanwhile in the East some cultivation work has commenced with barley planted in places.