1. Weekly News

India

Potato Production Dropped in Uttar Pradesh and West Bengal Amid Weather Challenges

In India, adverse weather conditions in Uttar Pradesh and West Bengal diminished potato production during the 2023/24 crop year, leading to increased retail prices. Traders and cold storage facility owners anticipate that these prices will remain high until the end of Nov-24 when the new crop arrives. In Uttar Pradesh, yields are around 11.5 thousand kilograms (kg) per acre, down from 15 thousand kg in 2023. Unseasonal rains during sowing and harvesting have also impacted potato production. Moreover, the agriculture ministry's first estimate of horticulture crop production shows a slight decline in potato production to 58.88 million metric tons (mmt) from 60.14 mmt in the previous year.

Ireland

Northern Ireland's Prolonged Wet Weather Sparks Potato Shortage Concerns for Chip Prices

Potato prices in Ireland are expected to increase due to shortages and adverse weather conditions. Supermarket prices of potatoes rose by 17.3% year-over-year (YoY), with further increases anticipated. Northern Ireland's persistent wet weather over the past ten months has severely impacted potato crops, disrupting the harvest of autumn crops and causing delays in the planting season. Additionally, the previous seasons' erratic weather patterns, alternating between dry and wet conditions, have further complicated farming activities. The inability to harvest potatoes last autumn is expected to decrease availability, potentially causing chip price increases, particularly from June onwards. This price surge is expected to be more noticeable in chip shops, which acquire potatoes from the open market, unlike supermarkets that secure supplies through contracts at fixed prices.

United States

High Supply Expected from Strong Potato Harvest in California and Florida

The potato harvest in California commenced on April 29, 2024, a week earlier than expected, and is seeing an excellent turnout of red, white, and yellow potato varieties. This season is becoming more typical, with an abundant supply expected for shipping in May. Additionally, storage crops are still being harvested in primary growing regions such as the Pacific Northwest.

In Florida, the harvest of new crop reds and yellows is also ongoing, although the state is nearing the end of its new white potato harvest. Demand for new potatoes is promising and is catching up to the early start date, particularly in comparison to last year's delayed start. Shipping from the state is expected to continue until mid-July. While pricing is not as robust as in the 2023 season, it remains good and is consistent with pricing in other districts for colored potatoes.

Rwanda

CIP and RAB's Initiative to Accelerate Adoption of New Potato Varieties in Rwanda

The International Potato Center (CIP) and the Rwanda Agriculture and Animal Resources Development Board (RAB) launched an initiative to transform Rwanda's potato sector. The initiative, with technical and financial backing from the Consortium of International Agricultural Research Centers (CGIAR) Roots, Tubers and Bananas (RTB) Program and a United States Agency for International Development (USAID)-funded project, introduced 11 new potato varieties between 2019 and 2021. These varieties, including Ndamira, Cyerekezo, Kazeneza, Seka, Gisubizo, Twigire, Jyambere, Ndeze, and Nkunganire, are known for their high yields, pest resistance, drought resilience, and superior cooking and processing attributes. However, local farmers have been slow to adopt these new varieties. To address this, CIP and RAB are partnering with seed potato companies to expedite the adoption process and enhance the benefits for Rwandan farmers.

United Kingdom

High UK Potato Prices Driven by Limited Supply and Delayed Planting Season

Limited supplies and a delayed planting season result in high potato prices in the United Kingdom (UK). On May 7, 2024, Mintec Benchmark Prices (MBP) for English White potatoes reached USD 801.61 per metric ton (GBP 630/mt), marking a 90% YoY increase, while English Maris Piper potatoes rose to USD 839.78/mt (GBP 660/mt), an increase of 120% YoY. Trading has been subdued due to the scarcity.

May's warmer weather has accelerated planting progress across the UK, with most English growers completing their planting. Projections for the new crop area suggest it will match 2023 levels, but seed availability constraints hindered growth. Harvest delays of about two weeks have prompted growers with remaining stocks to capitalize on high free-buy prices, with some holding onto portions of their stock. The current situation is described as a "sellers' market."

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W20 2023 to W20 2024)

France

In W20, the price of potatoes in France slightly increased to USD 0.50/kg from USD 0.49/kg in W19, representing a 1.27% week-over-week (WoW) increase and a 5.45% month-on-month (MoM) change. This rise is attributed to decreased potato supply, driven by reduced production and ongoing climate challenges such as flooding and droughts, which continue to pose significant threats to future crops.

Netherlands

In the Netherlands, potato prices rose to USD 0.48/kg, marking an 11.54% WoW increase. On a MoM basis, potato prices surged by 28.14%, up from USD 0.37/kg in Apr-24. This significant price increase is primarily due to heavy rainfall during the harvest season, which has disrupted production and reduced supply in the market. The limited supply will continue supporting higher prices as the market year progresses. Additionally, ongoing climate challenges and increased demand have further exacerbated the upward pressure on potato prices.

Germany

Potato prices in Germany increased by 11.34% in W20 to USD 0.73/kg after remaining unchanged from W17 to W19. Additionally, there was an 11.76% MoM increase, reaching USD 0.81/kg. This price rise is attributed to weather-induced planting delays caused by heavy rains. While approximately 25% of processed potato crops are already planted, the overall planting schedule has been disrupted. The resulting shorter growing season is expected to reduce overall yield, raising concerns about potential supply shortages later in the season. Consequently, market prices rose as traders and retailers anticipate lower potato availability.

Pakistan

Potato prices in Pakistan remained stable at USD 0.25/kg from W18 through W20. This price stagnation is attributed to a persistent shortage that has significantly reduced potato yields, adversely impacting the overall potato industry.

Egypt

Potato prices in Egypt experienced a slight increase of 5.35% WoW, rising to USD 0.26/kg from USD 0.25/kg. On a YoY basis, prices have surged by 78.08%, up from USD 0.15/kg. This price hike is primarily due to the availability of potatoes from the new season, which has diverted attention and resources from regular potato production. Furthermore, strong buyer demand for potatoes has added pressure on prices, contributing to the ongoing upward trend. This increased demand, fueled by domestic consumption and export opportunities, has exacerbated supply constraints and increased prices.

3. Actionable Recommendations

Optimizing Market Opportunities from a Strong Potato Harvest

With a strong potato harvest expected in California and Florida, exploring new markets for the surplus potatoes can prevent price drops and ensure farmers receive fair returns. Optimizing the use of storage facilities will balance supply throughout the year, preventing market gluts. In addition, implementing sustainable farming practices is essential to maintain soil health and ensure long-term productivity.

Accelerating Adoption of High-Yield Potato Varieties

To accelerate the adoption of new potato varieties in Rwanda, conducting training programs to educate farmers on their benefits and cultivation techniques is crucial. Providing subsidies or financial incentives for purchasing high-quality seed potatoes can encourage farmers to switch to these varieties. Strengthening partnerships with private seed companies will ensure a reliable supply of new potato varieties, enhancing the overall productivity of the sector.

Enhancing Resilience in Potato Production Amid Adverse Weather Conditions

To mitigate the impact of adverse weather conditions in Uttar Pradesh and West Bengal, it is crucial to develop a robust weather forecasting system that helps farmers plan their sowing and harvesting schedules more effectively. Encouraging crop diversification can reduce dependency on potatoes and mitigate risks associated with climate variability. Increasing investment in cold storage facilities is also essential to reduce post-harvest losses and stabilize prices by extending the shelf life of potatoes.