France Organic Potato 2020-2021 Supply and Demand Imbalance
In a recent article CNIPT's experts note that for the second year in a row, the increase in French organic potato supply is out of phase with what demand can absorb, in a saturated and limited market (less than 3% of the total supply of potatoes).
“After a 2019-2020 season marked by an increase in yields and harvests, the organic supply increased by 15% in 2020-2021. This is estimated at around 65,000 tonnes of organic potatoes, sold in long circuits under contract, including imports,” wrote Ali Karacoban from the Comite National Interprofessionnel de la Pomme de Terre (CNIPT), citing AND-I data and a CNIPT survey.
According to the above-mentioned sources, nearly 90% of the French crop is made by the Grand-Est, Center, Bretagne, and Hauts de-France regions. Upon Karacoban's analysis, the percentage of potato volumes in the French harvest intended for the industry continued to grow and reached 21% (compared to 17% in 2019). Also, imports reached a historically low level and fell by 78% to 750 tons (or 1% of the total organic supply).
A Market Imbalance
The article's analysis shows also that the 2020's organic potato crop was marked by its average quality, with the presence of wireworms on the potatoes, and also that commercial activity is stable over the first part of the season.
“A stall can be observed from the spring (the previous year was marked by a surge in purchases at the start of the health crisis). The end of the season is characterized by an abundant supply compared to what the market can absorb, causing prices to fall and sales difficulties. Average prices at the shipping stage have fallen by nearly 60% in the second half of the 2020-2021 campaign, compared to 2018-2019,” Karacoban also mentioned.
The CNIPT's organic commission is involved in various work for professionals: market monitoring and economic expertise (in particular with two surveys carried out each year with marketers working in long-term circuits under contract), decision-making support tools, and structuring (awareness sheets for temporary employment procedures, technical support sheets) and communication (actions in coordination with Agence Bio).
