W5 Potato Update: South Korea Anticipates Lower Potato Prices in H1-2024 Amid Increased Supply, While Ukraine Faces Unprecedented Fourfold Surge in Potato Prices at the Beginning of 2024

Increased Potato Supply in South Korea Expected to Affect Prices in H1-2024

In South Korea, prices in the first half of 2024 (Jan-24 to Apr-24) are expected to be lower than in 2023 due to increased supply. The supply of carry-over storage potatoes is anticipated to be higher than the previous year, driven by increased production of open-field spring potatoes and highland potatoes. The cultivation area forecast for open-field spring potatoes in 2024 will rise by 1.1% year-on-year (YoY), influenced by higher prices during shipment. Conversely, due to lower shipping prices, the cultivation area for highland potatoes is expected to decrease by 2.5% YoY. Moreover, the total production of field spring and highland potatoes in 2024 is forecasted to be 489 thousand metric tons (mt), marking a 1% YoY increase from the previous year's 485 thousand mt. Field spring potato production is expected to increase by 2.1% YoY to 365 thousand mt in 2023 from 358 thousand mt in 2022, while highland potato production is predicted to be 124 thousand mt, a 2.1% YoY decrease from the previous year's 127 thousand mt.

Record High Potato Prices in Poland and the EU in 2023

Potato prices are reaching record highs in Poland and the European Union (EU), with preliminary estimates from Eurostat for 2023 indicating a change from the high price increases seen in 2021 and 2022. Potatoes, including seed potatoes, experienced the most significant price increase in the EU in 2023, rising by 23% YoY, following widespread drought affecting production levels across Europe. Germany, Slovakia, and Croatia saw the fastest price growth, while Belgium, Cyprus, and Austria recorded decreases. Meanwhile, purchased potatoes in Poland surged by 44.0% month-on-month (MoM) in Dec-23, reaching USD 27.51 per day (PLN 111.11), with late potatoes contributing significantly to the increase. Market prices for potatoes in Dec-23 remained consistent with Nov-23 but marked a 31.0% YoY increase.

France's 2023 Ware Potato Campaign Witnessed a 2.3% YoY Growth in Cultivation Area

The 2023 potato campaign in France witnessed a 2.3% YoY growth in the ware potato area, reaching 157.65 thousand hectares (ha) compared to 2022. Despite initial weather challenges, the yield level increased to an average of 43.3 mt/ha from 39.2 mt/ha in 2022. This surge is expected to lead to a 12.7% rise in French ware potato production, totaling 6.81 million mt in 2023. The improved yield, bouncing back from climatic stress in 2022, is seen as sufficient to meet growing demand, particularly from the industry, minimizing potential marketing issues

Ukraine Faces Unprecedented Fourfold Surge in Potato Prices at the Start of 2024

At the start of 2024, Ukraine witnessed an unprecedented fourfold surge in potato prices, reaching USD 0.48 to 0.61 per kilogram (kg). This surge is attributed to challenges in potato cultivation, such as unpredictable weather conditions, a reduced European harvest, and lower product quality. Analysts anticipate a continued rise in potato prices during spring, with imported products entering the market at higher values.

Potatoes Rank Second in Agricultural Exports from the Republic of Chuvashia in Jan-24

In Jan-24, Russia's Chuvash agricultural exporters witnessed a substantial 3.6 times increase in export volume compared to the same period in 2023. Notably, potatoes ranked second, with 126 mt of ware potatoes being supplied to Serbia, while 126 mt of seed potatoes were exported to the Republic of Azerbaijan.

Russia Imposed Import Quota on Potato Seeds, Restricting Sources from Unfriendly Countries

Russia imposes a quota of 33.1 thousand mt on the import of seeds for various crops from unfriendly countries. The restrictions cover potatoes, wheat, rye, barley, corn, soybeans, sunflowers, and sugar beets. Specific quotas include 16 thousand mt for potato seeds. The imposed restrictions are effective from the 11th working day after the decree's official publication until December 31, 2024.