W30: Potato Update

In W30 in the potato landscape, Dutch potato exporters saw a substantial increase in potato exports during the last season, reaching 904.3 thousand tons. Major recipients included Belgium, France, Germany, and Southern European countries, contributing to the total European Union (EU) sales estimated to reach 724.2 thousand metric tons (mt) in the 2022/23 season. Additionally, Germany is expected to have the highest average potato yield of 41.6 t/hectare (ha) in 2023, while Lithuania is projected to have the lowest at 14.7 t/ha. Poland's average yield is estimated to be 27.1 t/ha, which is 12% higher than 2022 but 2% lower than the five-year average. Meanwhile, the European Commission's crop monitoring committee Joint Research Centre (JRC) has revised the yield estimate of potatoes in Belgium to 2022, 2% below the five-year average. Despite a rosy outlook in May-23, the Netherlands, Belgium, and Germany experienced below-average yields due to drought in Jun-23. The average expected yield for the entire EU is 34.4 t/ha in 2023.

The United Kingdom (UK) potato crop is facing higher prices due to limited supply, but the new season's crop trade is beginning to pick up. The demand for potatoes surpasses the available supply as freshly harvested crops are purchased quickly. The Benchmark Prices for Grade 1 Packing Maris Piper EXW England have reached USD 599.9/mt (GBP 470/mt), reflecting a significant year-on-year (YoY) increase of 327%. Likewise, the Benchmark Price for Grade 1 White Packing Potatoes EXW England is currently at USD 510.5/mt (GBP 400/mt), a 627% YoY increase. These price surges are due to delayed harvest and reduced supply from the previous year, leading to limited supply and increased demand. However, market sources predict prices will ease by September when most of the 2023/24 potato crop is harvested and available.

Spanish potato farmers are frustrated over the large-scale export of Egyptian potatoes, leading to competition and lower purchase prices for local farmers. The Unión de Pequeños Agricultores y Ganaderos and Unión de Pequeños Agricultores y Ganaderos (UPA-COAG) farmers' alliance denounces that local potato crops are being purchased by merchants at unfairly low prices, making it difficult for farmers to cover their production costs. Meanwhile, consumers pay significantly higher prices for the same potatoes without the benefits being passed on to the producers. This raises concerns about the enrichment of certain commercial links at the expense of the producers' labor.

In Uzbekistan, the COVID-19 pandemic led to restrictions on goods and people movement, preventing local production of potatoes. The Food and Agriculture Organization of the United Nations (FAO) and Uzbekistan's Ministry of Agriculture implemented the "Recovery and Development of the Potato Sector in Response to the COVID-19 Pandemic" project from 2021 to 2023, aiming to increase production and improve the potato sector in Uzbekistan. Lastly, the first estimate for potato acreage in Canada indicates a total of 396.9 thousand acres in 2023, reflecting a 2.5% YoY increase. Alberta saw the largest increase, with 6,920 acres planted, representing a 9.5% growth. The overall potato production for Canada is projected at 64 thousand mt (1.26 million cwt) in 2023, surpassing last year's crop by 152.4 thousand mt (3 million cwt).