W7 Potato Update: Dutch Potato Processing Sees Decline in Domestic Usage, and Brazil Faces Rising Potato Prices Amid Supply Shortage

Published 2024년 2월 23일

In W7 in the potato landscape, the Dutch potato processing industry experiences a decline in domestic usage while witnessing an increase in imports, as VAVI reported. Domestic potato processing volume decreased by 160 thousand mt compared to the previous year, reaching 1.27 mmt from Jul-23 to Jan-24. In contrast, potato imports surged by 8% YoY, reaching 950 thousand mt during the same period, constituting 43% of the total processing volume. Meanwhile, in Brazil, heavy rainfall in key potato-producing regions like Paraná and Minas Gerais has led to a decrease in potato supply, resulting in a significant rise in prices across major wholesale markets during W6.

Dutch Potato Processing Sees Decline in Domestic Usage, Increase in Imports

The Dutch potato processing industry has witnessed a shift towards increased reliance on imported potatoes during the current season. Data from the Dutch Potato Processing Industry (VAVI) reveals a decline in domestic potato processing and a rise in imports from Jul-23 to Jan-24. Compared to the same period in the previous year, potato processing volume in the Netherlands decreased by 160 thousand metric tons (mt), reaching 1.27 million metric tons (mmt). This decline is attributed to reduced dependence on domestically grown potatoes, contrasting with the previous year when disappointing harvests in neighboring countries necessitated increased domestic utilization.

Conversely, potato imports witnessed an 8% year-on-year (YoY) increase, reaching 950 thousand mt in the first seven months of the current season. This rise has resulted in imported potatoes accounting for 43% of the total processing volume, compared to 38% in the previous year. In Jan-24, potato processing totaled 321 thousand mt, with 146.3 thousand mt dedicated to pre-fried products like fries and 27.8 thousand mt to other products. This translates to a potato-to-end-product yield of 1.8 kilograms (kg) per kg. Consistent with previous months, processing of low-quality potatoes had minimal impact on overall yield, and lower underwater weights this season did not negatively affect returns.

Brazilian Potato Prices Rise Amid Lower Supply Following Heavy Rainfall

Potato sales prices in major Brazilian wholesale markets experienced an increase across all monitored locations during W6. The average price for special agate potatoes in São Paulo reached USD 30.65 per 25-kg sack, reflecting a 3.96% week-over-week (WoW) increase. Prices in Rio de Janeiro witnessed a more significant rise, with special agate potatoes sold at USD 37.34 per sack, representing a 30.79% WoW increase. Belo Horizonte observed a milder price increase of 0.84% WoW, with special agate potatoes priced at USD 29.75/25 kg sack.

This upward trend is attributed to the heavy rainfall in key potato-producing regions, like Paraná and Minas Gerais, which has disrupted field activities, leading to a lower volume of tubers available for sale. Despite the price increase, demand for potatoes remained subdued due to the recent Carnival celebrations, which typically lead to lower consumption. Despite weaker demand, the significant supply constraints outweighed the decreased consumption, resulting in price hikes. With continued rainfall expected in the coming week, harvesting challenges are likely to persist, potentially lending further support to potato prices in the near term.