The Netherlands: supply problems for potato processors and historically high prices

Demand for EU potato supplies remains strong, but supplies are tightening. This is because many producers no longer have enough stock to offer on the open market due to quality problems that compromised storage capacity, caused by last year's wet harvest. 

Those who have stock are aware of the shortage of supply and are waiting for even higher prices. To complete their contracted supplies, buyers must increase their prices to incentivize producers to sell. 

On February 27, 2024, the Mintec Reference Price (MBP) for Dutch processing potatoes reached EUR 37.5/100kg (USD 4.10/100kg), the highest price for February since the price series began in 2014. According to market sources, limited supply is expected to continue supporting prices as the year progresses. 

In the Netherlands, signs of shortages are starting to be evident in the processing industry. VAVI, the processing organization in the Netherlands, processed 321.6 thousand tons of potatoes in January 2024, a decrease of 10.8% compared to the previous year. 

There has been a shortage of processing potatoes due to challenges in obtaining them from suppliers. Dutch processing is becoming more dependent on supplies from neighboring countries; In January 2024, 33.2% of total supply was imported, compared to 21.4% of imports in January 2023. 

Additionally, due to heavy rain during harvest, a significant amount of potatoes were left in saturated soil for an extended period. The NEPG (Northwest European Potato Growers) has estimated that 650 thousand tons were lost during the harvest or were left on the ground and did not reach the market. 

Potatoes that were harvested during wet conditions were no longer suitable for long-term storage. As a result, the availability of non-contracted supplies is very limited and processors have been competing with each other for limited stock, which has continued to drive up prices.