W1 Potato Update: Egypt's Seed Potato Imports Drop, Ukraine's Prices Surge, Hungary Sees Decline in Production, Maine and Morocco's Potato Harvest Remains High

Egypt's Seed Potato Imports Hit Six-Year Low Amid Economic Challenges and EU Shortage

Egypt's seed potato imports reached a six-year low from Sep-23 to Oct-23, with only 16.6 thousand tons supplied. This is almost three times less than in the 2022/23 season, mainly from September to February. One of the world's most important producers and exporters of potatoes, Egypt is also the world's second most important importer of seed potatoes. The decline in imports is partly due to economic problems in the country, such as the devaluation of the pound and a shortage of foreign exchange resources. The main reason for the drop in potato imports is the shortage of seed potatoes in the European Union (EU) in 2023. The North-Western European Potato Growers Foundation predicts a decrease in seed potato production by almost 20% this season, negatively affecting potato production in countries dependent on EU and its seed imports. Egypt is the largest exporter of ware potatoes to the EU, and the Egyptian export season falls in the second half of the European potato season.

Potato Prices Surge 11% WoW in Ukraine Amidst Reduced Supply and Quality Challenges

Potato prices in Ukraine have increased 11% week-on-week (WoW) in W1, primarily due to reduced local market supply and difficulty finding quality potatoes. Wholesale companies face challenges in finding an adequate supply of potatoes from local farmers. The average selling price for potatoes in Ukraine is 3.9 times YoY, and market participants predict further price increases due to potential shortages.

Hungary's Potato Production, Imports, and Exports Continue to Decline in the 2022/23 Season

Potato cultivation in Hungary has experienced a persistent decline, marked by a 17% year-on-year (YoY) decrease in 2022 and a further reduction in 2023. Potato imports also witnessed a 13% YoY drop, amounting to 38.2 thousand tons, with France emerging as the largest supplier. On the export front, potato exports decreased by 28% YoY, totaling 2.73 thousand tons, with Romania and Croatia serving as the primary target markets.

Projections for 2024 anticipate an increase in the price of imported potatoes, though it is essential for the trade sector to determine shelf prices rather than leaving it to producers. Mandatory promotions may also influence the potential price hike. The trend is expected to continue in 2024, indicating ongoing challenges in Hungary's potato industry.

Expectation of Slight Increase in Dutch Potato Consumption Costs for 2024 Amidst Fluctuating Input Expenses

The Dutch Arable Farming Union (NAV) anticipates a marginal rise in consumption potato cost prices for 2024 compared to the previous year, requiring contract prices to increase. This adjustment is attributed to higher labor, land, crop protection, and seed potato costs, albeit offset by lower expenditures in fertilizers, electricity, and fuel costs. Consequently, the overall cost price is expected to be slightly elevated for the 2024 harvest compared to the 2023 harvest, influenced by these factors.

Maine's Potato Harvest Holds Strong Despite Weather Challenges in 2023

Despite facing challenges from rainy weather, Maine's potato harvest in the past year was 70 million pounds (lbs) smaller than the previous year. Nevertheless, farmers gathered the third-largest crop in the last five years, amounting to 17.4 billion lbs. Serving as Maine's primary food crop, potatoes were worth USD 258 million. During the spring of 2023, farmers planted potatoes across 21.4 thousand hectares (ha), resulting in a substantial harvest. Most of the crop is directed towards processors, nearly three-quarters of the total being russet potatoes. Despite the weather-related setback, the overall harvest remains robust, contributing significantly to Maine's agricultural landscape.

Morocco Anticipates Growth in Potato Production in Tangier-Tétouan-Al Hoceima Region for the 2023/24 Season

In Morocco, potato production in Tangier-Tétouan-Al Hoceima is expected to increase this season, with 14.2 thousand ha allocated for growth. Known for its irrigation cycles, modern equipment, and suitable conditions, the Locos Basin is being utilized for production. The Regional Office for Agricultural Investment is implementing programs to support farmers and improve production.