Even larger EU 2014/15 potato crops weighing on prices

Production estimates in North-Western Europe, already known to be strong, have seen upwards revisions following the receipt of additional yield data - now exceeding 28Mt from a record 547,000ha. In GB, 2014/15 crop yield estimates are slightly higher too which has further increased production compared with last season to 5.74 Mt, (approx. 160,000t more than 2013/14).

Ex-farm free-buy prices, both in Great Britain and abroad, have been weak reflecting the supply situation. The GB weekly free-buy price fell to a new season low w/e 16 Jan, hitting £77.43/t compared to £152.09/t at the same point last season. This is the lowest it has reached since Autumn 2009, and the lowest for the time of year since the 2002/03 season. While there has been less need for imports, ample supplies across Europe have also made exports challenging.

The value of most potato categories has continued to decline in the 12-week period, reflecting slowly falling average costs of potatoes and potato products for consumers. Frozen potatoes have seen YOY declines in volume and value in the latest quarter, against the 52-week YOY trend (+1%). The volume of chilled potatoes (+16%) have helped the segment increase value by 12%, while total fresh potatoes have seen an overall value decline as volumes have risen.