Late and cold spring drives up potato prices
Potato prices are subject to strong annual fluctuations of up to over 100%, which are to a lesser extent predictable and controllable. The two main arguments are that potatoes are difficult to store and transport. This means that we are always dependent on the new harvest without being able to achieve any significant compensation through storage or international transportation. On the other hand, demand for potatoes is within a narrow bandwidth. If there is too little supply, consumers will pay almost any price and if there is too much supply, prices fall to ruinous levels.
This year, the cold and late spring meant that the early, medium and late potatoes did not have enough time to develop. Growth is lagging behind by around 4 weeks. Flooding and silting of the potato ridges also contributed to yield losses. Early potato prices at producer level are between €65 and €75/100 kg, which is twice as high as last year.
The area under cultivation in 2013 is estimated to be 238,000 ha, similar to last year. The largest cultivation area is Lower Saxony with 103,000 ha due to the suitable light and easily sievable soils. Irrigation is necessary in many cases. Potatoes are grown on around 41,000 ha in Bavaria and 27,000 ha in NRW. Well-known early potato varieties are known from Baden-Württemberg and the Palatinate. In the colder north, early potatoes are grown under foil and pre-germinated at great expense.
Yields per hectare are likely to be below average this year, resulting in a persistently low supply. As a rule, however, potato prices fall sharply from spring to fall. They usually reach their lowest point during the main harvest in September/October.
Large quantities of processing potatoes are traded on the WTB Eurex / Frankfurt. Current prices are at €14.60 per tonne and are expected to rise to over €22 per tonne by spring 2014. Compared to other agricultural futures, potatoes are hedged relatively frequently via the commodity futures exchange.
Potatoes must be stored in frost-proof conditions, otherwise the starch will be converted into sugar. However, this type of "sweet potato" is not to everyone's taste. Computer-controlled air conditioning systems ensure that the narrow bandwidth of the optimum temperature of + 4 to max. 8 degrees Celsius is maintained throughout the stack and is hardly subject to any fluctuations.
