1. Weekly News

Brazil

Brazilian Potato Prices Rise in May-24 Amidst Shift in Market Dynamics

Brazilian potato prices decreased for the second consecutive month in Apr-24, with the Santa Catarina Supply Center experiencing the most significant month-on-month (MoM) drop of 25.1%. This decline occurred despite lower supply levels, as demand for the tuber also decreased. However, this trend did not continue into May-24. The average prices in Supply Centers of Paraná SA (CEASA) at the start of May-24 were higher than Apr-24, indicating a potential shift in the potato market as the peak of the wet harvest season likely passed and the dry season harvest began.

Canada

Climate-Resilient Potato Varieties Development in Canada

Federal scientists in Atlantic Canada are undertaking efforts to breed a new type of potato that can thrive under the shifting growing conditions caused by climate change. Research scientists at Agriculture and Agri-Food Canada are exploring wild potato varieties native to the South American Andes, which exhibit potential for developing a more drought-resistant potato suitable for North American markets. With over 5,000 potato varieties worldwide, the Agriculture Department notes that the extensive number reduced genetic diversity among many varieties. This decreased diversity makes some potatoes more susceptible to disease and less adaptable to climate change. Unlike most commercial potato varieties, which are tetraploid and possess four copies of each chromosome in their DNA, the wild potato varieties native to Peru are diploid and have two copies of each chromosome. This genetic difference makes the wild potato variety more amenable to laboratory manipulation and experimentation.

Russia

Russian Potato Prices Increased by 7.9% WoW in W20

According to the Federal State Statistics Service (Rosstat), consumer prices for potatoes in the Russian Federation rose by 7.9% from May 14 to May 20. This increase marks a significant uptick compared to W19, where the growth was recorded at 4%. Potato prices have surged by 27.5% year-to-date.

Ukraine

Ukrainian Potato Growers Face Challenges Amidst Unpredictable Weather Patterns

One of Ukraine's major seed potato suppliers reported significant frost damage to their crop in the eastern regions of Poltava and Kharkiv. Despite the early planting opportunities afforded by favorable soil conditions compared to the previous year, potato growers faced numerous challenges this season. The unique weather patterns included an exceptionally early temperature rise in late Feb-24, leading to premature soil warming and maturation before planting. Intense precipitation, temperature fluctuations, and cooling in Mar-24 and Apr-24 were followed by prolonged and repeated frosts in the first half of May-24, coupled with dry conditions later in the month. These conditions resulted in uneven growth stages among potato plants, delays in tuber growth and marketable crop accumulation, the need for frost protection, rapid soil drying, and reduced effectiveness of soil herbicides.

Ukrainian Potato Prices Surged Amidst Decreased Supply and Stable Demand

Ukrainian potato prices began to increase over the past weekend. As of May 22, producers sold potatoes from the 2023 harvest at prices ranging from USD 0.38 to 0.55 per kilogram (kg), depending on factors such as quality, variety, and volume. This represents an average increase of 27% week-on-week (WoW). Market operators attribute this price hike to a seasonal decrease in supply amid stable demand. Wholesale companies faced challenges in sourcing quality potatoes from producers, leading to insufficient batches for purchase. Notably, prices for W21's potatoes in Ukraine are currently 3.4 times higher than in W21 2023.

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W21 2023 to W21 2024)

France

French wholesale potato prices rose by 4.8% WoW to USD 0.52/kg. France is currently in a farming crisis driven by national inflation, which has significantly increased the prices of potatoes and many potato-based products. Farmers attribute the price surge to poor crop yields, and the continued weakening of the Euro (EUR) against the USD has further impacted the situation.

Netherlands

The wholesale price of potatoes in the Netherlands fell by 10.34% WoW to USD 0.43/kg in W21. Despite strong demand, supply is tightening due to quality issues from 2023's wet harvest, which compromised storage capacity. Producers with stock are holding out for higher prices. The potato processing industry shows signs of shortage, with a 10.8% year-on-year (YoY) decrease in potato processing in Jan-24. Imports now make up 33.2% of the total supply, up from 21.4% in Jan-23. Heavy rains during harvest led to an estimated loss of 650 thousand metric tons (mt), leaving processors competing for limited stock and driving prices up.

Germany

Germany's wholesale potato prices experienced a slight weekly decline of 1.57% to USD 0.80/kg. However, on a monthly and yearly basis, prices rose by 10.01% and 11%, respectively. Despite unfavorable weather conditions, the EU Commission maintains its potato yield forecast for Germany, estimating a yield of 36.8 mt/ha. This forecast surpasses the five-year average by 1.4 mt/ha or 4%.

Pakistan

Pakistan's wholesale potato price surged by 70% WoW to USD 0.42/kg. This sharp increase is due to a severe outbreak of late blight disease, a fungal infection that has hit potato farming in Punjab, causing significant crop damage. Approximately 10% of the crops were destroyed entirely, leading to heavy losses for farmers. Farmers who diversify by growing potatoes are now facing considerable financial strain. Moreover, inflation-hit consumers have also reduced their purchases to less than one kilogram to manage expenses. Overall, the cost of vegetables in Pakistan has significantly increased, affecting affordability for the average buyer.

Egypt

Egypt's wholesale potato price declined significantly by 39% WoW to USD 0.16/kg. This sharp drop is due to the substantial devaluation of the Egyptian pound (EGP) against the USD, which has depreciated more than threefold in the past two years. The currency devaluation coincided with Egypt's peak potato export season. Given that potatoes are a top export crop for Egypt and European potato prices have been soaring, this timing proved advantageous.

3. Actionable Recommendations

Diversification of Potato Varieties

To address supply chain disruptions caused by quality issues from the previous year's harvest, potato producers in the Netherlands should consider diversifying potato varieties to mitigate risks associated with reliance on a single cultivar. Farmers can spread their production risks and ensure a steady supply of quality potatoes throughout the year by cultivating a diverse range of potato varieties with varying maturity periods, disease resistance profiles, and market preferences, Moreover, collaboration with research institutions and seed suppliers can facilitate access to new potato varieties tailored to specific growing conditions and market demands.

Investment in Post-Harvest Infrastructure

The decline in potato prices in Egypt highlights the importance of investing in post-harvest infrastructure and storage facilities to minimize post-harvest losses and ensure market stability. Governments and private sector stakeholders should collaborate to modernize storage facilities, improve transportation networks, and enhance cold chain logistics to prolong potato shelf life and prevent spoilage. Additionally, training programs on proper handling and storage techniques can empower farmers to preserve potato quality and capture value in domestic and export markets. By strengthening post-harvest management practices, countries can enhance food security, reduce food waste, and support sustainable potato value chains.

Sources: Conab, Timescolonist, Agrotimes, Agrobusiness, Interfax, East Fruit, Tagesschau