1. Weekly News

Brazil

Declining Potato Prices in Brazil's W25 Amid Increased Supply and Early Harvest Season

According to the Center for Advanced Studies on Applied Economics (CEPEA), potato prices further declined in W25 in Brazil. The increase in supply due to the drought harvest and the beginning of the season in the Southwest of São Paulo has intensified downward pressure on prices. Researchers predict that availability will continue to rise until Aug-24 and Sept-24, coinciding with the peak of the winter harvest. The average price of special agate potatoes dropped 3.07% week-on-week (WoW) to USD 32.45 per 25 kilogram (kg) bag wholesale in São Paulo. In Rio de Janeiro, prices fell by 12.37% WoW to USD 29.77/25kg, while in Belo Horizonte (Minas Gerais), the price decreased by 4.7% Wow to USD 31.36/25 kg.

Colombia

Potato Harvest Ends in Cauca, Colombia Causing a 13% Wow Price Hike in W25

The harvest of fresh common potatoes grown in the Cauca department concluded in W25, leading to price changes in markets across Western Colombia. The price in the wholesale sector rose to USD 0.70/kg , marking a 13% WoW increase.

Kazakhstan

Kazakhstan's Q1-24 Vegetable Exports Double, Led by Potatoes

Kazakhstan increased its exports of garlic and onions in Q1-24, with the total export volume of vegetables reaching 432.8 thousand metric tons (mt), a 2.1-fold increase compared to the same period last year. Farmers earned USD 68.2 million from these exports. Potato exports surged 2.5 times to 213.4 thousand mt, generating USD 25.6 million. Uzbekistan was the largest buyer, importing 172.7 thousand mt, a 2.1-fold increase. Additionally, Tajikistan imported 17.5 thousand mt, a 6.2-fold increase, and Turkmenistan imported 22.9 thousand mt, a 68.6% increase.

Russia

Russian Spring Crop Sowing Update; Potatoes Lag Behind

Russian farmers had sown 52.3 million hectares (ha) with spring crops as of June 10, falling just short of the Ministry of Agriculture’s target. Soybean sowing is accelerating, but potato sowing is lagging. However, vegetable sowing is slightly ahead of last year's pace.

Turkmenistan

Turkmenistan's Lebap Velayat Achieves Strong Early Potato Harvest

Farmers in Turkmenistan's Lebap Velayat planted 1,400 hectares (ha) with early potato varieties, resulting in 19,778 mt of potato harvests, yielding approximately 14.3 mt/ha. Chardzhevo etrap produced 6,735 mt from 480 ha, Danevsky etrap yielded 4,960 mt from 350 ha, Sayat etrap harvested 4,427 mt from 300 ha, and Halachsky etrap obtained 1,857 mt from 130 ha. The harvested potatoes are sold in local markets and shops, with the surplus stored in specialized cold storage facilities owned by the Miwe Agricultural Association.

United States

Wisconsin's Planting Near Completion with 93% of Potatoes Rated Good to Excellent

Nearly all of Wisconsin's planting is complete in W25. Wisconsin potatoes show significant improvement, with 93% now rated as good to excellent.

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W25 2023 to W25 2024)

France

In W25, the wholesale price of French potatoes increased slightly by 1.45% WoW, reaching USD 0.70/kg from USD 0.69/kg. This price rise was due to limited supply and steady demand from regular clients. Since Sept-23, Italy and Spain have been importing significant quantities of French potatoes due to reduced domestic production in Italy and ongoing demand in Spain. This trend has continued into 2024, with strong demand persisting, particularly from Italy, resulting in increased exports of French potatoes to these markets compared to previous years. Spain remains the largest importer of French potatoes, with shipments accelerating at the beginning of 2024.

Germany

In W25, Germany's wholesale potato prices declined by 3.85% WoW to USD 0.75/kg from USD 0.78/kg. Compared to the same period last year, prices were down by 27.43%. This price decrease was due to the scarcity of early potatoes in 2024. Farmers in Germany faced challenges in planting due to heavy rainfall in Feb-24 and early Mar-24, mainly affecting southern and southwestern regions. The excessive rain hindered field access and delayed starch storage, complicating the harvest process.

Pakistan

Pakistan's wholesale potato prices increased 3.85% WoW, rising to USD 0.27/kg from USD 0.26/kg. Compared to year-on-year (YoY), prices surged by 32.67%. This rise followed the festive season of Eid al-Adha, during which the prices of vegetables, including onions and potatoes, typically rise due to increased demand for meat preparations. Additionally, Pakistan experienced a high inflation rate in early Jun-24, reaching 21.69% nationwide, which further contributed to the price increase in agricultural commodities like potatoes.

Egypt

Egypt's wholesale potato prices in W25 remained unchanged WoW but saw a significant increase of 44.44% month-on-month (MoM) and 30.55% YoY. This rise coincided with the active export season for Egyptian potatoes. As one of the top five global potato exporters, Egypt exports extensively to markets, including Russia, the European Union (EU), the United Arab Emirates (UAE), Lebanon, Iraq, Kuwait, Syria, and Indonesia. The devaluation of the Egyptian pound has helped alleviate potato shortages in Europe, where prices were reaching record highs, but has increased demand for Egyptian potatoes, affecting prices. Despite disruptions from Houthi activities in the Red Sea, Egypt's potato exports to the EU remain competitive due to favorable pricing enabled by the currency devaluation.

3. Actionable Recommendations

Managing Supply Peaks in Potato Harvest

Prices in Brazil are experiencing downward pressure due to increased supply from the winter harvest. Stakeholders in Brazil should focus on enhancing storage capabilities and logistics efficiency to manage the peak supply periods expected in Aug-24 and Sept-24. Additionally, exploring opportunities to expand export markets during periods of surplus can help stabilize domestic prices.

Monitoring Market Dynamics for Potato Price Stability

In Pakistan, potato prices increased post-Eid al-Adha due to heightened demand, reflecting seasonal consumption patterns. Meanwhile, Egypt's potato prices remained stable WoW but surged significantly MoM and YoY amid active export seasons. To stabilize prices, stakeholders in both countries should monitor market dynamics closely. Implementing effective price monitoring mechanisms and supply chain management strategies can ensure fair pricing and availability for consumers. Additionally, enhancing storage infrastructure and cold chain logistics will optimize post-harvest management, minimizing wastage and maintaining potato quality. Collaborative efforts between governments, farmers, and traders to address market inefficiencies and regulatory barriers will support sustainable potato market growth.

Collaborative Export Strategies for Potatoes

Central Asian countries like Kazakhstan, Uzbekistan, Tajikistan, and Turkmenistan should collaborate to strengthen their global potato export market position. Governments can facilitate regional trade agreements and joint marketing initiatives to promote Central Asian potatoes globally. Investing in modern agricultural technologies and infrastructure, such as irrigation systems and cold storage facilities, will improve product quality and extend shelf life, enhancing export competitiveness. Additionally, fostering partnerships with international buyers and participating in international trade exhibitions can expand market reach and attract foreign investments.

Sources: Brownfield Ag, Eastfruit, Zol, Tridge, Dunya News