The potato farmers are currently facing a number of special challenges. Before the cultivation decision, the question is whether normal yields this year are realistic at all. Last year it was too hot and too dry for much of the growing season. Only irrigated farmers were able to generate satisfactory yields. The NEPG notes that in the last four years the groundwater level in all NEPG countries has been below the level of the last ten years. If there is still much rain or snow in the next two months, the water reserves could rebuild, but without them the water reserves for potato cultivation are too small. The Federal Association of the fruit, vegetable and potato processing industry eV (BOGK) is already afraid of another drought year. At Fruit Logistica in Berlin, lobbyists reported that last year was catastrophic for members. Of all the raw materials processed by the members of the association, 25-50% were missing raw materials. It was necessary to reduce production and consumers could only be supplied to a limited extent, according to a press release this week.In such a situation farmers and consumers are not set. The industry fears, however, that you have to bear a large part of the damage alone. The supply contracts with retailers have already been concluded for the entire year 2019. That leaves no room for shortages. The farmers only had to pay for what was delivered, but industry demands compensation for shortages. For a more equitable distribution of risk, the association is now calling for the revision of supply contracts and contractual provisions on malnutrition and shortages between industry and commerce. Until the beginning of February it was still unusually dry in northern Germany. In addition, western and central Europe are forecast to have high sunshine for the next 14 days, with plenty of sunshine. This put pressure on futures market quotations for processed potatoes this week. From the previous high, which was on the April-19-date at 33 € / dt, it was partly 3 € / dt down to the 30 Euro mark, which is the most popular price in the cash market for frit raw material.The behavior of the buyers also helps to cool the heated market sentiment. The supply of raw materials will be ensured in the coming months, they say. Contract-free potatoes are currently no longer available. AMI is currently relaxed among the potato processors and adds that the first noteworthy plantings will take place this weekend. If the weather is good, then it will probably continue quickly. For West Germany, 15 ° and sunshine will be reported next week. While the situation on the European mainland has calmed somewhat, on the British Isle, exporters are busy these days. Before the impending Brexit on March 29, the buyers of British potatoes in the Canary Islands and the Spanish mainland want to stock up their supplies again properly. The British potato traders also used the large public at the Fruit Logistica in Berlin to tell their politicians via a press release that there is an urgent need for more planning security. Especially for the sale of seed potatoes to countries like Egypt, Morocco and Israel.Here the EU has an agreement that will no longer apply to the British after 29 March. The seed buyers in these countries were hotly solicited by British breeders' houses at the fair in Berlin with arguments such as plant health and the variety of British varieties. Under the WTO rules, however, customs duties would be incurred in the future until the United Kingdom has concluded its own trade agreement with the receiving countries.
ZMP Live Expert Opinion
In the five countries of the NEPG (The Association of North-West European Potato Growers has members in NL, B, F, D, GB) there are too few planting potatoes this year. Mostly missing processing varieties. Without supply contracts, it is very difficult for the farmers to get the desired varieties. Despite higher contract prices, which the potato processors offer the contract farmers, the acreage for the 2019 harvest can barely expand. For example, more dual-use varieties from the food segment or from starch potatoes could be used in potato processing, as has happened in the past few months of this season. At very high prices, the export of seed to Southern and Eastern Europe is performing differently.