European processing potato price climbing due to soaring production costs and tight supplies

Published 2022년 2월 8일

Tridge summary

The free-buy market is experiencing price fluctuations due to increased production costs and a decrease in total potato storage stocks. In Q4 2021, there was a global surge in demand for processing potatoes, driving prices up. This trend is expected to continue into Q1 2022, driven by the easing of lockdown restrictions and recovering foodservice demand. The 2021 potato production in the EU-04 zone + UK is forecasted to decline by 4.1% y-o-y, reaching 35.3 million tons, due to low production. The tight supply resulting from this decline is expected to continue driving prices up until the 2022 planted area is known.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Various market fundamentals are driving prices on the free-buy market, including soaring production costs and a seasonal decline in total potato storage stocks. In Q4 2021, there was growth in processing potato prices in response to a global surge in demand due to COVID-19 recovery, and a large resumption in global export trade. This is expected to remain as bullish driver throughout Q1 2022 as lockdown restrictions appear to have eased globally and foodservice demand is recovering to pre-pandemic levels. This follows a year of low production for the 2021 season in the EU-04 zone + UK (Netherlands, Belgium, ...

Source: Argenpapa