CePa's analysis of Italian and European potato market

The CePa - Potato Documentation Centre (Italy) reports that the weather is still unfavourable for potato cultivation in Europe, causing delays in sowing of the produce destined to industrial processing and fresh consumption on some of the main production areas.

Operators are expecting an increase in quotations in the next few months because of the low availability of the product on the market.

There was a significant contraction in the 2012 potato harvest of some European producer countries as, for example, volumes harvested in the United Kingdom were 24% lower than those in 2011 and they were also delayed. This in turn meant greater imports from Northern European countries (France, Holland and Belgium in particular) and favoured higher prices in those countries and in the rest of Europe for most of the winter season.

The situation in Northern Europe is currently characterized by lower stocks of 2012 produce with respect to the average of the last few years. In particular, German exports in the winter season have increased with respect to the previous year. Surveys carried out during March 2013 indicate an availability of conservation potatoes which is less than 8%. Prices of produce supplied to the Italian market start from €0.26 per kilo (ex works) depending on the quality and on the variety.

In France, surveys indicate that the availability of fresh stocked produce during February 2013 is lower by 16% than last year. Prices of produce supplied to the Italian market hover between €0.40 and €0.43 per kilo (ex works) depending on washability and on the variety.

The delay in 2013 sowing and lower stocks of last year's produce should lead to higher prices in the next few months for potatoes destined to processing and to be consumed fresh.

The commercialisation of new potatoes

The current commercial and production conditions in Europe have led to an increase of new potato imports from Mediterranean countries at the start of the 2013 campaign: in particular, exports towards Europe from countries such as Egypt in March 2013 have recorded an increase of more than 21,000 tons with respect to the same period in 2012;Israel started exporting towards Europe two weeks earlier than 2012 because of the good situation of the market but also because of the risk of locust infestation in some of the production areas.

Prices of Israeli new potatoes currently hover around €0.55-0.56/kilo for produce placed in Jumbo sacks and delivered to Italy. Produce from Egypt currently hovers at around €0.52-0.53/kilo for produce placed in Jumbo sacks and delivered to Italy.

In Italy, the harvest of new potatoes in Sicily has been delayed because of the rainy weather these past few weeks. Operators have estimated a 30% reduction of invested surfaces on the island with respect to last year. The average price of the Sicilian produce (ex works) is between €0.58 and €0.60 per kilo depending on quality.

The sales of fresh potatoes on the Italian market were rather average: prices were satisfying, with an increase in prices of just a few cents per kilo in mass retailing for produce with a definite set of characteristics. Prices in the main wholesale markets were good.

There was an increase in prices for the produce destined to processing in the main Northern European markets: the price for Bintje potatoes varied between €0.21-0.25/kg for 40-45mm+ grades, the delay of new sowings will probably mean prices will remain high in the next few months in Northern Europe.

After a number of surveys carried out on average retail prices in Italy, the average price of a kilo of potatoes during the 14th week of 2013 has been set at €1.00 in Northern Italy, €1.00 in Central Italy and €1.10 in Southern Italy. The average price in Italy is therefore of €1.05 per kilo.

Click here to download the whole bulletin of 5th April 2013.