Potato Prices & Commentary

Ex-Farm Potato Prices reported to IFA

Due to the continued lack of progress in potato plantings, the probability for delays in the 2018 crop are more certain, with most reports suggesting a minimum of two weeks at least. This will result in approximately 10,000 extra tonnes of potatoes being required in this marketing season compared to last year’s. These market factors will inevitably lead to a positive market outlook for product in cold store. Over in the UK, the likelihood of delayed planting has seen growers refusing lower quotes in anticipation of a pickup in farm gate prices as the season progresses. The planting situation is no better across northern Europe with commentators reporting that the season is one of the latest on record. This fact is reflected in the European Processing Futures edging higher last week and there are signs that physical prices are also on the increase.

Ex-Farm Potato Prices reported to IFA

The potato trade continues to remain positive across all market outlets. Buyers are continuing to look for premium product however, this is becoming quite scare in the market. Growers with this type of product in cold store, should now look for price increases as this product is limited and rising cold store costs must be covered. In the coming weeks, all ambient store material will disappear from the market and saleable crop from any unharvested crop will be significantly reduced. This will leave stocks similar to last year, as drawdown of stocks since Christmas has been very significant, due to increased sales, high tare levels and movement to alternative market outlets. Due to the delayed plantings of early and main crop the market window for cold stored product has now been extended by at least two weeks also.

Ex-Farm Potato Prices reported to IFA

Sales of potatoes remain very strong across all market sectors with sales figures more similar to mid-winter than mid spring. At this stage, farmers with material in cold store should be pushing for price rises. Any excess stock which was around earlier in the year has either still to be dug or has been removed from the market. Due to the later planting season it looks increasingly likely that there will be very little main crop available until September. These two factors alone, have now created a different dynamic in the market for cold stored material. Throughout the early potato growing areas of The UK and Europe (Lower Saxony, Palatinate, West Flanders and Cornwall), the continuation of the wet and cold spell has had the dual effect of delaying planting whilst increasing sales of main crop on domestic markets.