1. Weekly News

Europe

MARS Forecasts Varied EU Crop Yields for 2024, With Belgium Leading and Lithuania Lagging

The Monitoring Agricultural ResourceS (MARS) crop monitoring team released its May-24 forecast for the European Union's (EU) 2024 crop yields. Belgium is expected to achieve the highest average yield at 43.5 metric tons (mt) per hectare (ha), while Lithuania is forecasted to have the lowest yield at 15.7 mt/ha. In Poland, the average yield is projected to be 28.2 mt/ha, a 3% year-on-year (YoY) decrease from 29.6 mt/ha in 2023, aligning with the five-year average. The overall expected average yield for the EU stands at 36.8 mt/ha.

Adverse Weather Delays Potato Planting in Ireland and Europe

Since the start of spring 2024, Irish and European potato growers have faced delays in planting schedules and crop progress due to adverse weather conditions. The latest report from the Irish Farmers Association (IFA) highlights that Ireland and Western Europe are experiencing persistent unfavorable weather, with frequent wet periods and rare, short-lived dry spells. In Ireland, heavy rains continue to hinder plantings, leading to an expected significantly late potato harvest. Similarly, in Europe, weather conditions have also delayed planting, particularly in the Netherlands.

Belgium

Belgian Potato Planting Delayed by Heavy Rains

In Belgium, heavy rains in 2024 have caused significant delays in the typical potato planting window from April 15 to May 15. By the beginning of W21, only 46% of potatoes had been sown, raising slight concerns within the industry due to the disorderly nature of spring work caused by the persistent rainfall. The director general of the Belgian Potato Trade and Processing Association (BELGAPOM) noted similarities to the situation in 2023, where planting was delayed. Despite the late start and resulting losses from uncollected crops due to the rain, the potato yield was still higher than the previous year.

Kenya

Kenya and Netherlands Mark Decade of Advancing Potato Sector

Over the past decade, Kenya and the Netherlands have collaborated to advance Kenya's potato sector. Forged in 2012, this partnership initially focused on enhancing the seed potato subsector, addressing the scarcity of certified seed potatoes in Kenya. Investments from both Kenyan and Dutch companies have since expanded to encompass the entire potato value chain, including storage solutions, mechanization, processing, and capacity building. Leveraging its position as the world's largest seed potato exporter, the Netherlands brought its expertise to develop a robust seed potato sector in Kenya. Funded by the Embassy of the Kingdom of the Netherlands and implemented through Wageningen University, the project involved numerous Dutch companies and Kenyan stakeholders. One significant achievement of this collaboration is the increased number of registered potato varieties in Kenya from 13 in 2013 to 64 in 2023, with 34 varieties originating from the Netherlands. These include varieties suitable for chipping, crisping, table use, and multi-purpose functions. The availability of high-quality processing varieties such as Markies, Destiny, Taurus, and Jelly has notably strengthened Kenya's processing industry.

Peru

Peru Aims to Boost Potato Production to Over 5.4 MMT in 2024

Peru emphasized the importance of boosting potato production, particularly native species, with an ambitious goal of exceeding 5.4 million metric tons (mmt) in 2024. This initiative requires collaboration with regional authorities, municipalities, and farmers to foster sustainable growth in this crucial sector. Amidst climate change and global food challenges, the potato stands out as a versatile and nutritionally valuable crop, vital for food security worldwide.

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W22 2023 to W22 2024)

France

In W22, the wholesale price of French potatoes surged significantly by 11.54% week-on-week (WoW) and 18.37% month-on-month (MoM) to USD 0.58 per kilogram (kg). This price increase is due to climate change-induced extreme weather events that adversely affected potato crops worldwide, resulting in price hikes and placing farmers in a precarious situation. Additionally, the early months of 2024 witnessed a notable price surge due to a shortage of supply coupled with consistent demand from regular clients. While Jan-24 saw active exports, reducing stocks across various production regions, shipments slowed down from Feb-24 onwards. However, the volumes sold this season remain significantly higher than the previous year at the same period.

Netherlands

In W22, the wholesale price of potatoes in the Netherlands surged significantly by 27.91% WoW and MoM to USD 0.55/kg from USD 0.43/kg in W21. Climate change-induced extreme weather events have wreaked havoc on potato crops globally, leading to price hikes and leaving farmers in a precarious situation. In the Netherlands, drought has taken its toll. The Netherlands and Belgium, two key regions for processing potatoes for fries, were particularly affected, with Dutch processing potato prices reaching their highest recorded level for Apr-24.

Germany

Germany's wholesale potato prices saw a slight weekly increase of 2.50% to USD 0.82/kg, rebounding from the previous week's decline. The current supply of early potatoes has been less abundant than usual, driving up costs. Planting of early potatoes typically begins in traditional harvesting areas by February or March. However, rainfall in the south and southwest led to significant delays in Rhineland. While harvesting for direct marketing and warehousing for major markets has commenced in Lower Saxony, the Palatinate, and Baden-Württemberg since the second half of May-24, this only involves a smaller segment of farmers. The main business, which includes packaged potatoes distributed in supermarkets, will begin in the second half of Jun-24.

Pakistan

Pakistan's wholesale potato price witnessed a significant decline of 40.48% WoW to USD 0.25/kg, attributed to a drop in the inflation rate on May-24. Meanwhile, globally, the potato industry is facing climate change, resulting in soaring prices and substantial financial losses for farmers. The situation is dire, with many farmers expressing concerns about their ability to sustain potato production amid changing climatic conditions.

Egypt

Egypt's wholesale potato price increased significantly by 12.5% WoW and 20% YoY to USD 0.16/kg. This increase was due to less availability of potatoes from the new season and heightened demand from buyers. As a result, Egypt exported fewer potatoes to Russia, causing prices to rise in the market. However, the situation is expected to be rectified soon with the commencement of supplies of young potatoes from domestic fields.

3. Actionable Recommendations

Adapting to Climate Change Challenges in Potato Production

The recent surge in wholesale potato prices in the Netherlands and Germany underscores the urgent need to address climate change-induced challenges. Governments, agricultural organizations, and stakeholders must collaborate to implement adaptive strategies and resilience-building measures to mitigate the impact of extreme weather events on potato crops. Investments in climate-smart agricultural practices, such as soil conservation, crop rotation, and precision irrigation, can help enhance the resilience of potato production systems to climate variability and reduce vulnerability to weather-related risks. Furthermore, promoting crop diversification and the adoption of drought-tolerant potato varieties can help buffer farmers against the adverse effects of water scarcity and temperature extremes.

Fostering Sustainable Growth in Peru's Potato Sector

Peru must prioritize collaborative initiatives to foster sustainable growth across the potato value chain to boost production to over 5.4 mmt in 2024. This requires coordinated efforts between government agencies, regional authorities, and agricultural stakeholders to address main challenges and capitalize on opportunities for sectoral development. Agricultural research and innovation investments are essential for developing high-yielding and climate-resilient potato varieties tailored to Peru's diverse agro ecological zones. Furthermore, promoting sustainable farming practices, such as efficient water practices and integrated pest management, can help enhance crop productivity while minimizing environmental impact.

Addressing Potato Planting Delays in Europe

Proactive measures are necessary at national and regional levels to mitigate the impact of adverse weather conditions and planting delays in Europe. Firstly, governments should invest in resilient agricultural infrastructure, including improved drainage systems and water management practices, to minimize the effects of heavy rains and waterlogging on potato fields. Additionally, providing financial assistance and incentives to farmers affected by planting delays can help offset losses and facilitate timely planting when weather conditions improve.

Furthermore, promoting diversification in crop planning and encouraging the adoption of early-maturing potato varieties can enhance farmers' resilience to weather-related risks and minimize the impact of planting delays on overall production. Collaborative efforts between agricultural authorities, research institutions, and farmers' associations are crucial for disseminating best practices and providing technical support to farmers navigating planting challenges. By implementing these measures, European countries can better prepare for and adapt to unpredictable weather patterns, ensuring the sustainability and resilience of their potato production systems.

Sources: Farmer.pl, Fructidor, Agroberichtenbuitenland, Agraria, Agrotimes, Fresh Plaza, Hum News