Quality concern and wastage, resulting from high dry matter levels and difficult harvest conditions, are now becoming the main influence on potato industries across the five Northwest European Potato Grower (NEPG) countries.
Statistical estimates for the 2009 crop continue to be published, although the full picture is not yet complete. However, it appear that despite lower yields in Germany, Belgium and Holland, overall production for 2009 is likely to be higher than in 2008. This is particularly the case in Belgium where planted area has increased rapidly, and contributed to the 14% rise in production.
High wastage in most countries, already estimated at over 20% in the Netherlands, could mean a significant volume of crop may not be usable by processors. There may also be a change in quality requirements compared with those of 2008, by some processors, which would assist the utilisation of the remainder of this season’s higher stocks.
Action though appears to have already started, as many Northern European factories are currently working at high-speed on lower priced supplies. In the Netherlands for example processing is estimated to be around 7-10% more and prices 20% lower than to this date last year. Producers with suspect crops in stores may therefore be in for a difficult season ahead. Processors with high volumes of prepared products in stores, leading into next year, may not be large buyers on the free market during the Spring of 2010.
In contrast those growers with good quality potatoes are already able to obtain premium returns. Those stocks however are limited and that could have a positive influence on their price, particularly following the turn of the year.
