1. Weekly News

Bangladesh

Bangladesh Faces Potato Price Surge Amid Weather and Disease Impact Crop

Bangladesh potato prices rose significantly due to adverse weather and a fungal disease affecting production. Cyclone Michaung brought heavy rains in Dec-23, leading to a shortage during peak harvesting. Late blight disease has also reduced vegetable production, including potatoes, a staple crop. Potato retail prices have surged by 17.65% month-on-month (MoM) and 49.25% year-on-year (YoY). The government has allowed imports of 530 thousand metric tons (mt) of potatoes to address the price hike, with 86.8 thousand mt already imported. Authorities are taking measures to ensure reasonable prices and monitor the situation closely.

Egypt

Egypt's Initiative to Combat Brown Mold in Potato Exports From Egypt During 2023/24 Season

The project director in Egypt aimed at controlling brown mold in potatoes has reported that laboratories are currently analyzing potato samples for export during the Sham El-Nessim and Labor Day holidays. Researchers and technicians are working on getting results to help with export procedures. Moreover, the engineers are on-site in brown mold-free areas and potato farms to carry out their tasks. The project has examined 850 thousand tons of potatoes for export during the 2023/24 season, following the directives of the Minister of Agriculture and Land Reclamation to assist citizens and exporters during these holidays.

Europe

European Potato Planting Disrupted by Adverse Weather

The adverse weather conditions, including cold temperatures and frequent downpours, have disrupted potato planting schedules in various regions of Europe. Rain has constantly interrupted planting in Ireland, while hailstorms in the Netherlands damaged potato and onion crops. Progress in potato planting is slow in Northern France, with only about 5% of fields planted so far. In Belgium, around 25% of the area has been planted with early potatoes, but the impact of the weather on this season's harvest remains uncertain. Due to limited stocks from the 2022/23 season, the Irish Farmers' Association predicts a challenging season, with delayed planting schedules and potential supply issues expected by the end of June and into July.

Georgia

Georgia's Sharp Decline in Potato Imports from Belarus in Q1-2024

In Q1-2024, Georgia sharply reduced its potato imports from Belarus. The country only imported 518.4 tons, a significant decrease from the 6371.3 tons imported during the same period in 2023. As a result, the monetary value of these imports plummeted from USD 1.72 million in Q1-2023 to USD 137.5 thousand in Q1-2024.

India

Potato Price Surge Poses Concern for Ruling Parties Amid National Elections During May-24

India has seen a significant surge in potato prices, with costs per kilogram (kg)rising by 47.1% from March 1 to April 15, 2024, reaching USD 0.3 to USD 0.36/kg (INR 25 to INR 30/kg). This increase is primarily attributed to a production shortfall caused by unseasonal weather and transportation challenges in Uttar Pradesh and West Bengal, two major potato-producing states. The rising prices are expected to persist until the arrival of the next potato crop, potentially impacting budget-conscious voters and ruling parties.

Lebanon

Akkar Farmers Face Economic Struggles as Potato Harvest Season Commences in May-24

Potato harvest season has begun in Akkar province, northern Lebanon, renowned for its potato cultivation. Farmers in Akkar typically plant potatoes between early December and late January, with harvesting completed before mid-June. In 2024, however, potato farmers face challenges due to the ongoing economic crisis in Lebanon, which has increased costs for inputs such as fertilizers and pesticides. Despite these challenges, farmers are hopeful for a successful harvest, as potatoes are a staple crop in Lebanon and an important source of income for many agricultural communities.

Italy

Italian Authorities Seize 33 Tons of Fraudulent French Potatoes During Mar-24

In Mar-24, the Italian Guardia di Finanza, in cooperation with the Central Inspectorate for Quality Protection and Prevention of Agricultural and Food Fraud (ICQRF) inspectors, seized 33 tons of French potatoes falsely labeled as Italian. The potatoes were found at an enterprise in Salento, where they had been washed and covered in local red soil to mask their origin. The company's legal representative faces criminal charges, highlighting the ongoing efforts to combat food fraud and the importance of accurate food provenance.

United Kingdom

UK Faces Potato Shortages Amid Weather Challenges and Consumer Trends

Due to rainfall, cold springs, and consumer preferences for warmer meals, existing stocks are depleting, which might potentially cause potato shortages in the United Kingdom (UK). This has resulted in delays in planting, creating a gap between existing supplies and the upcoming season's crops. Moreover, some potato suppliers have expressed concerns about shortages of certain varieties and have begun to limit order fulfillment. The Agriculture and Horticulture Development Board in the UK has warned of potential price surges for other staples, suggesting broader economic implications.

Ukraine

Ukrainian Potato Prices Soared Compared to Imported Potatoes During 2024

In 2024, the prices of young local potatoes in Zakarpattia, Ukraine, stood at USD 1.53/kg (UAH 60/kg), with larger ones costing USD 1.65 to 1.78/kg (UAH 65 to 70/kg). This is an increase in prices from last year's USD (50 to 60/kg). In comparison, imported new potatoes are almost half the price, with Egyptian ones priced at UAH 34/kg and Spanish ones at USD 0.81/kg (UAH 32/kg) in supermarkets.

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W19 2023 to W19 2024)

France

The slight increase in potato prices in France to USD 0.49/kg, reflecting a 1.82% week-over-week (WoW) and a 6.10% MoM increase is the result of the drop in potato cultivation areas by more than 10% YoY in France, leading to a reduction in supply. Moreover, this decline in planting areas is partly due to ongoing climate change, which has caused issues such as flooding and continued droughts, posing significant threats to future crops. These challenges have been compounded by damaging heatwaves, severely affecting potato growth and leading to poor crop yields. Additionally, the peak harvest season for potatoes in France is from June to August, during which supply typically increases.

Netherlands

Potato prices significantly increased to USD 0.43/kg in the Netherlands, marking a 15.27% WoW and MoM increase. The price increase is primarily due to heavy rainfall during harvest. This led to a significant amount of potatoes left in the saturated ground. Potatoes harvested during wet conditions were unsuitable for long-term storage, reducing available stocks. This shortage is evident in the processing industry, with processors relying more on supply from neighboring countries. Limited supply is expected to continue supporting prices as the market year progresses.

Germany

In W19, potato prices in Germany remained unchanged at USD 0.73/kg due to adverse weather disrupting planting schedules. Cold temperatures and frequent downpours in Germany led to delays. The delays in planting have raised concerns about potential impacts on the overall potato harvest in Germany.

Pakistan

Pakistan's potato prices remained unchanged at USD 0.25/kg in W19. However, potato experienced a 17.49% YoY price increase. The increase in potato prices is primarily attributed to a shortage of high-quality potato seeds. This shortage has reduced potato yields, impacting the overall potato industry. While Pakistan has the potential for year-round potato seed production, the available domestic seeds do not meet quality standards, necessitating the import of seeds.

Egypt

The price of potato in Egypt remained unchanged in W19 at USD 0.25/kg. Despite remaining unchanged WoW, prices have surged by 66.92% YoY. One of the key factors contributing to this price hike is the availability of potatoes from the new season, which has diverted attention and resources from potato production. Additionally, high buyer demand for potato has put further pressure on prices, leading to the current upward trend.

3. Other Outstanding Price Anomalies

El Niño Disruptions Drive Ecuador's Potato Prices Up by 94.95% YoY in W19

In W19, fresh common potato prices in Ecuador increased by 94.95% YoY to USD 0.60/kg, compared to USD 0.31/kg on May-23. Moreover, there was a 9.09% MoM increase. Additionally, it should be noted that the current prices have exceeded those observed in 2023.

The surge in potato prices in Ecuador can be attributed to the ongoing El Niño event, which began on Jun-23 and has caused disruptions in several countries, including Ecuador. The situation escalated to the point where officials declared a state of emergency on April 19, 2024, leading to the rationing of electricity due to the lack of rainfall. This reduction in electricity supply has likely impacted agricultural activities, including potato cultivation, leading to a decrease in supply and consequently driving up prices. Consequently, the reduction in supply has driven up prices in the potato market.

4. Actionable Recommendations

Weather-Resilient Cultivation Practices

Given the impact of adverse weather on potato production in countries like Bangladesh and regions like Europe, stakeholders should promote and adopt weather-resilient cultivation practices. This includes investing in disease-resistant varieties, implementing efficient irrigation systems, and enhancing crop management techniques to mitigate the impact of weather-related challenges.

Diversification of Potato Varieties and Supply Chains

Stakeholders should diversify potato varieties and supply chains to reduce disruptions and mitigate price surges. This includes promoting the cultivation of different potato varieties that are less susceptible to weather and disease risks and developing alternative supply chains to ensure continuous access to potatoes despite localized challenges.

Government Support and Policy Interventions

Governments should provide support and implement policies that stabilize potato prices and ensure fair returns for farmers. This includes monitoring market dynamics, implementing price stabilization mechanisms, and facilitating access to inputs and resources for potato cultivation.

Research and Development

Stakeholders should invest in research and development to address challenges such as climate change and disease outbreaks. This includes developing new potato varieties more resilient to climate challenges and diseases and improving cultivation practices based on scientific research and innovation.