Increased Competition Among the European Buyers for Available Potato Supplies

The demand for potatoes is expected to increase in the upcoming months. Production deficits have been observed in Poland and Southern European regions. As a result, there is now more rivalry among purchasers for available potato supplies, and exports have already begun.

After the delayed harvest became available and reports of a larger crop than the previous year, the Mintec Benchmark Prices for Dutch processing potatoes were assessed at EUR14.75/100kg on September 19th, down 37% y-o-y.

Initial yield projections in the most recent update from the North-western European Potato Growers (NEPG), which was published on September 11th, indicate a return to multi-year averages. Since the August update, the EU Commission has increased yields by 1% to 34.7 t/ha, which is 2% more than the five-year average but 2% less than the crop expected in 2022–2023.

Due to the increased planted areas, which are up 2.5% in NEPG countries, the production is expected to reach about 23m tonnes, which is a 1.3m ton rise from 2022 and closely aligns with 2021 projections.

“There are concerns regarding the significant impact of late blight on this year's harvest. NEPG has issued a warning to growers, urging them to assess the situation in their fields and establish communication with buyers to address and mitigate the challenges posed by late blight. In August, there was an uptick in yields but also elevated levels of blight. Notably, certain varieties, like Fontane and Challenger, typically planted later in the season, may face constraints in reaching their full growing potential unless left in the ground until mid-October,” the Mintec report reveals.