Analysis Potatoes
Germany takes the lead in the potato market
In Belgium and France, the potato market is as solid as a rock. As is well known, the Netherlands does not have an official potato price index. If something happens, it has to come from our eastern neighbors. They don't need to be told twice.
Being a potato grower in the backyard of the processor seemingly does not pay off. In Belgium and France, there is quite a bit of processing capacity, but with a Belgapom and RNM price index of €12.50 for Fontane, they are at the bottom in terms of price. But well, at least they have an index.
In Germany, a completely different story is unfolding. Fontane was raised by €1.50 today to €15 and the top of the market Innovator increased by €2 to €23. It is thanks to Germany that the DCA Spot Price for French fries potatoes takes a step up. Compared to last week, the price rises by €1.20 to €15.35 per 100 kilos. This puts the DCA Spot Price €0.15 higher than the first cash settlement of this season.
Germany taking the lead in the price indices in the EU-4 is remarkable when looking at the course of the growing season. Not only has the acreage expanded, but the yields are generally good. Just over a month ago, the German Ministry of Agriculture announced that they expect the largest potato harvest since 2004. The current stock as of November 1 is reportedly 12% larger than last season. These are not usually the ingredients for a rising market. However, the reasoning in Germany is that there should be enough demand in the Netherlands and especially in Belgium later in the storage season, justifying an optimistic view of the market.
