Northwestern European potato market remains under heavy pressure

The potato market in Northwestern Europe remains under heavy pressure. Especially the market for potatoes for French fries is hardly moving. Meanwhile, the new harvest for the ware potato market is getting underway. In France, the start is sluggish. Sentiment in Germany is reasonably positive. The industry seems to be clearly hitting the brakes after a brief rise in demand for premium varieties Innovator and Markies. There was demand especially in Germany and Belgium, but demand also picked up in the Netherlands and France. This resulted in prices up to around €8 per 100 kilos and in some cases above that. This created a bit more movement in the potato market, but that turned out to be of short duration. Some lots are still being traded, but the industry is capping prices. For Innovator this is around €3 per 100 kilos and for Markies around €5 per 100 kilos. In some cases higher prices are achieved for exceptionally good qualities suitable for export to Southern Europe. So there is trade, but not enough to get the market moving. Meanwhile, the industry is being supplied almost entirely through contract potatoes. As a result, there are few transactions to report. For the bulk varieties Fontane and Challenger, things remain sluggish. Transactions are scarce and buyers show little interest as long as the industry is sufficiently covered through contract growing. In Belgium, trade in Fontane remains at €0 per 100 kilos. In the Netherlands and Germany, prices are slightly higher, but even there trading volume remains very limited and market tension is absent. New harvest ware potatoes At the same time, the market for new harvest ware potatoes is cautiously getting underway, although tensions are visible there as well. In France, the supply of early potatoes is increasing rapidly, while demand from retail and consumers is lagging behind. Supermarkets are running promotions, but consumers remain price-sensitive. The price difference between new potatoes and cheap stored potatoes is large, causing many consumers to choose the cheaper alternative. In Germany, sentiment is more positive about the start of the new season for ware potatoes. This is linked to lower import volumes from Spain and therefore slightly better prices. This offers prospects for German traders and growers that there will be more room for marketing locally grown potatoes in a month. In addition, German companies have decided to allow marketing to proceed more gradually than last year.