11.
10.19
Potato demand in Eastern Europe remains steady

Potatoes cockpit, 11.10.2019

  • Demand for potato imports in Poland is rising
  • Brexit is reducing the continental supply
  • China charges US goods with tariffs between 10 and 15%
  • High Russian harvest pushes on the export markets
  • Factories are well stocked with frit raw material

Poland is a major player in new potatoes. Usually there is a large supply and the farmers always want to sell their production quickly. There was always a sufficient supply on the open market. This is also because after the early potatoes the fields are used for vegetables such as cauliflower. But things were different this year, reports Polish potato trader Lukas Ostrowicz. The offer was from the beginning too small for the demand. As there was not enough rain all summer, it was difficult for dealers to reconcile demand and supply. You had to import potatoes from Britain and Germany. This is something that has not happened in summer. New potato prices in Poland were three to four times higher than usual. When it finally gave a few showers in August, the situation has eased. Prices fell as other countries from the EU supplied potatoes to Poland. This also depressed prices for the domestic offer, although it still was not enough for self-sufficiency. Not all regions in Poland were affected so much by the drought.In northern Poland, for example, there was a good potato harvest, which could be sold consistently at high prices. For farmers and dealers this season was their best ever. Overall, the high prices have compensated for income losses. This is especially true for farmers who have a sprinkler system. Ostrowicz says that Lange is currently stable on the Polish potato market. But he expects bottlenecks soon. Maybe at the end of the year or at the beginning of 2020. Then he would have to import potatoes from Germany or other EU countries again. For Poland it is a very special season. Poland's statistics office estimates this year's potato harvest at just 6.7 million tons. Ten years ago, it was almost twice as much. This confirms the fear of a small harvest. Farmers are speculating on rising prices. A British exporter reports that the Polish supermarket chain Biedronka is listing potatoes from the UK as of 1 November. For the food retail trade, a no-deal-Brexit would be an incalculable obstacle. Elsewhere too, big politics in potato trading play a role.China intends to raise its import tariffs for US seed potatoes and potato products by 10% from 15 December; another 15% should be collected on frozen chips. This increases the chances for providers from the EU. In 2018 Russia started large-scale production of French fries. However, the new facilities are far from exhausted, reports the AMI in Bonn, referring to the Russian news service Fruitnews. In 2018, 42,400 tonnes of French fries were produced in Russia. In 2014-2017 it was only 4,600 to 6,100 tons pa The first large-scale factory, 450 km south of Moscow, was built with the support of the Dutch fry producer Lamb-Weston-Meijer. The plant has a capacity of 90,000 tons of frits pa In 2023, Russia intends to produce more than 100,000 tons, which will then replace imports. Today, the Belgapom index rose again slightly. After already raising the prices for Fontane to 11 € / dt last week, the prices for Bintje and Challenger now also rise to 11 € / dt. In this country farmers are still concentrating on their field work, but the demand for potatoes is served.Food potatoes have already been fully stored and farmers are demanding a stock surcharge for sweaty batches. As long as fry raw materials are still being cleared, the prices for consumer potatoes can barely skyrocket.

Potato demand in Eastern Europe remains steady
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ZMP Live Expert Opinion

The dryness last summer had a big impact on the European potato harvest. This challenge was especially felt by Polish potato growers. Traders already had to import during the early potato harvest in order to secure the national supply of potatoes. Although the situation on the Polish market is currently stable again, by the beginning of 2020 more potatoes will be imported again.

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