Potato Prices & Commentary

Ex-Farm Potato Prices reported to IFA

Virtually all stocks of Queen potatoes are now cleared. Demand is high for remaining stocks and merchants are actively seeking them if they are available.

Digging of new season Rooster continues and increased pre-pack volumes are available on supermarket shelves this week. Supermarkets are expected to move on to 7.5kg bags in the next two weeks. Excellent quality is reported to date of the main season crop.

In the UK, lifting of the main season crop and quality was hindered in some regions due to wet weather. Crop losses were reported in the North West caused by lifting hindrance and potatoes lying in waterlogged ground. Export movement to Poland continues although demand has reduced this week as there has been a National Holiday. Some independent buyers in Poland speculate that demand for 45mm x 60mm whites will continue all season.

Ex-Farm Potato Prices reported to IFA

Stocks of Queen potatoes are running very low with many buyers actively ringing farmers trying to source remaining supplies. With these earlies cleared from the market, it augurs well for the main season crop.

Digging of new season Roosters commenced last week with product available in wholesale markets and available in supermarket shelves this week. Growers are reporting good demand for the crop. We should also see new season Kerr Pinks on the market shortly.

New season did not start until September last year due to the weather conditions so this will give an extended marketing season for this year’s potatoes. Some Rooster crops have been burned off since mid-July therefore initial yields of early crops will be reduced. There is also a general consensus in the market, that yields may only be average on account of low tuber numbers.

Potato future prices came under some pressure in Europe earlier in the week due to heavy rain however, some areas such as northern Germany and Poland remain very dry and prices have since stabilized. The yield potential in these areas will be affected by the heat wave two weeks ago and early senescence is already visible in these crops. A recent AMI report indicates that production in Poland could be reduced by 1 million tonnes compared to 2018 due to the hot spell.

Ex-Farm Potato Prices reported to IFA

Research conducted by Bord Bia indicated that potatoes are still the most consumed carbohydrate in Ireland with 97% of households purchasing potatoes and a recorded growth in purchase of 1.3% to September 2018.

Liftings continue this week with favourable conditions. The first earlies are now largely cleared. Yields are much better than last year as is quality. Quantities of old stock remaining are marginal as lifting of new season Rooster crop is expected to commence in some regions next week.

According to a report by AHDB, potato production is likely to be significantly below average in both Poland and Czech Republic this year. Over 90% of the Czech Republic remains in drought with 23% of the country deemed as being in extreme drought.  Their main source of imports (Germany), may not be able to meet increased export demand due to severe drought experienced this summer. The UK are looking at this as an opportunity to increase exports depending on Brexit outcomes.