W49 Potato Update: European Harvest Challenges, Ukrainian and Colombian Onion Price Surge, Introduction of Dutch Salt-Tolerant Varieties in 2023

Europe's Potato Farmers Struggle with Delays and Unharvested Crops in 2023

The European Union's (EU) potato market faced challenges in Oct-23 due to heavy rainfall, flooding, and disruptions in harvesting operations. Around 1.4 million tons of potatoes were left unharvested, with Holland and Belgium being significant contributors. Despite moderate summer conditions, overall yields reached 45.4 tons per hectare (ha) in the North-Western European Potato Growers (NEPG) zone, a 6.3% year-over-year (YoY) increase. The total harvest estimate for potatoes in the NEPG zone was 23.6 million tons, similar to 2021.

Moreover, rising prices and tight supplies are expected to continue in the EU market, potentially allowing Canada and the United States (US) to gain more significant market share. The US is experiencing its largest potato harvest since 2000, with Idaho experiencing a significant increase in production. However, supplies of red potatoes may decline, while yellow potatoes will continue to increase. The global potato industry is navigating a complex landscape of surpluses and challenges, with Canada and the US potentially benefiting from these global dynamics.

Ukraine's Potato Prices Increased by 20% WoW in W49 Amid High Demand and Supply Constraints

In W49, potato prices in Ukraine have increased by an average of 20% week-on-week (WoW), from USD 0.27 to 0.38 per kilogram (UAH 10 to 14/kg), a significant increase from 2022. The growth is due to high demand, reduced supply from small farms, and unfavorable weather conditions that hinder manufacturers from shipping their products to the market. Despite the price increase, potato demand remains high, leading experts to predict farmers will raise prices for similar products.

European Large-Scale French Fries Processing Prices Face a Substantial Increase in W50

Potato prices for large-scale French fries processing in Europe have increased by USD 1.62/100kg (EUR 1.50/100kg) to an average of USD 22.39/100kg (EUR 20.75/100kg), an increase of USD 4.86/100kg (EUR 4.50/100kg) from W46. PotatoNL distinguishes between field-delivered and dry-delivered potatoes. Chip potatoes in category I range from USD 18.88 to 25.90/100kg (EUR 17.50 to 24/100kg). The processing industry is interested in custodial parties, but long-term custodians' willingness to sell is not yet high. The potato futures market quotation for French fries potatoes in April 2024 is USD 35.72/100kg (EUR 33.10/100kg).

HZPC Introduces Salinity-Tolerant Potato Varieties for Egyptian Growers Amidst Climate Change Disruptions

Climate change is causing significant disruptions to Egyptian potato growers, increasing salinity levels and disrupting crop growth. Dutch potato breeder HZPC, Head of Breeding Fresh Markets, is offering new potato varieties with high tolerance to salinity to address this issue. The Egyptian potato sector is concerned about rising salinity levels, as it is grown in climate-affected areas. Potato has been labeled a "strategic crop" in the government's plans to reclaim desert land. To meet the growing need for salt-tolerant potato varieties, HZPC introduced the Sagitta variety, which is stable under different climate and soil conditions and performs better under saline conditions. The breeder continuously develops tolerant varieties to meet the growing demand in Egypt and other parts of the world. The company focuses on five markets: Retail Fresh, Traditional Fresh, Crisps, Fries, and Flakes.

Potato Prices in Western Colombia Experienced a Double-Digit Increase in W49

The conclusion of the 2023 potato season in the Pacific region of Colombia has led to a price increase in the wholesale market. In W49, vendors in the area sold the product at USD 0.60/kg, reflecting an 80% rise from the start of the season. Additionally, in central Colombia, the price increased to USD 0.95/kg, an increase of 10% WoW.