News Potatoes
French fry price follows line of raw potatoes
The market for free-buy potatoes showed a sharp decline in a situation where there is a complete lack of demand. This also impacts the Open Market Index of the DCA Frozen Fries Index.
With a price of €377.27 per tonne for the Open Market Index, the notation reached its lowest level since early November last year, with a decrease of 7.1% or €29 per tonne. The Fastfood Index and 70/30 Index also show a decline, albeit a much smaller one. In week 17 the first reached a level of €595.52 and the latter €530.05.
Potato price hits Index
Driver behind this sharp decline is the lowering price for free-buy potatoes. Notably the Fontane potato price saw a rapid decrease this spring across the four largest European potato countries. The DCA Eu-4 Potato Index reached a level of €14.71 per 100 kg, which is almost 10% less than during the week before.
Other price factors, sunflower oil and natural gas, have remained stable factors in recent weeks. They are showing little movement, with a small decrease for the Dutch TTF natural gas price.
Plentiful supplies
The situation for the European potato market doesn’t appear to be changing anytime soon. Potato processors have more than sufficient contracted potatoes for their current needs and only buy lots that they have agreed to before. For the variety Fontane the situation is the bleakest. Innovators are also not in great demand, but the availability here is much lower, which has been the case since the start of the season.
Niels van der Boom
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