News DCA Frozen Fries Index
DCA Frozen Fries Index plunges after potato price correction
A sharp decline in the free-buy price for the popular French fry potato variety Fontane sets the DCA Frozen Fries Index significantly lower. European processors have put out a strong signal that there is less demand for potatoes currently.
The Open Market Index, which is led by the Fontane free-buy price in the EU-4 countries, shows the most significant decline. Its price level decreased by €65 per tonne in a single week. The 70/30 Index decreased with €18,48 per tonne.
Lower free-buy prices
This large decline is directly caused by the free-buy potato price. Belgium, France and Germany all set the price for Fontane variety potatoes €5 per 100 kg lower last week. The Netherlands will probably follow this week. This means that the DCA EU-4 Potato Index decreased by €3,58 per 100 kg to €28,95.
Further decreases in the potato price cannot be ruled out, especially for Fontane. The German REKA-price for Innovator also decreased, from €40 to €32 per 100 kg. This is somewhat remarkable, considering the healthy demand and small availability of free-buy crops. The French RNM hasn’t published an Innovator price in three weeks.
Balancing act
The Frozen Fries Index is mainly at the peril of the potato prices. Gas prices decreased, thanks to warming weather late February of after a cold spell, and sunflower oil increased marginally in price. With the oncoming spring, finalisation of the potato contracts and other factors the potato market is trying to find a balance. With the processors taking less interest in potatoes, this has an immediate effect.
Niels van der Boom
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