Even pool growers cannot escape the potato malaise

A deposit for pool potatoes of the smallest possible amount above zero, or a bill of more than €1,000 for transport costs for a rejected shipment of potatoes in France. These are issues that the potato grower is currently facing. The deposit for a full load of potatoes amounts to barely thirty euros in one of the largest pools in the Netherlands. It cannot be smaller than this amount, as the financial systems cannot handle it. For now, a pool grower has to settle for an amount of €0.001 per kilo. One wonders which bill he could pay with that. On the other hand, the buyer apparently also sees no possibility at this moment to attach a decent price to a valuable raw material. It is also a drawback that the potato futures market no longer plays a significant role. Normally, this instrument could have provided a safety net. However, due to a lack of trading on the futures market, this is no longer the case. The fact is that the market price for free potatoes is barely above zero. At least when looking at the main variety predominantly consisting of the cultivar Fontane. In France and Belgium, prices are reported ranging from €0.50 to €1.50 per 100 kilos for this variety. Belgapom notes this week unchanged at €1.50 per 100 kilos. In the Netherlands, it remains completely quiet around this variety, which is why PotatoNL still does not quote for the main cultivar in the fries production. Stocks are decreasing French fry producers are by no means operating at full capacity. Processing breaks are lasting longer to avoid producing more than necessary. They are all trying to gradually reduce their stocks. In the cold stores, there are still expensive fries lying around, the quality of which actually leaves much to be desired. Fries that were partly produced from potatoes that were actually not suitable for that use. But yes, that comes from a completely different time. A period in which fortunes seemed to grow endlessly. Out of fear of missing out on market growth, everything was tried. The sector is now reaping the bitter fruits of that. Leniency in rejections Although the potato market is moving very sluggishly, there are also factors that inspire hope. In general, contracts, for example, are being adhered to well. Even if the acceptance of the potatoes is sometimes postponed for weeks. There are rejections, but there is also some leniency in that regard. It is sometimes heard from growers that they do not need to supply new potatoes for that shipment and that they still get paid the contract price. And there are also contracts that have been bought out because the buyer already has more than enough potatoes to meet demand. Also, remnants within a contract are occasionally bought out at the agreed price because buyers no longer send a truck for a half load.