1. Weekly News

France

Strong International Demand Boosts French Potato Exports Despite Slight YoY Decline

Potatoes from France have experienced robust international demand. As of the end of Mar-24, all European markets remained active, with notable orders from Southern Europe (Italy, Greece), Northern Europe (UK, Netherlands, Germany), and Eastern Europe. From Aug-23 to Mar-24, France exported 1.82 million metric tons (mmt) of potatoes. Despite a 3% year-on-year (YoY) decrease in purchases, Spain remains the top customer with 528,947 metric tons (mt) purchased, followed by Belgium (472,926 mt, +1%), Italy (246,648 mt, +20%), Eastern Europe (163,923 mt, +27%), and Portugal (134,120 mt, -3%). In Mar-24, significant purchases continued from Spain, Belgium, and Eastern countries, with additional market activity from Greece, Austria, Switzerland, and Ireland. The CNIPT, the inter-professional association of the potato, noted a resurgence in exports to the UK, totaling 2,783 mt, a notable increase following the post-Brexit downturn. In value terms, French potato exports from Aug-23 to Mar-24 saw a 24% YoY increase over the previous year's record, nearing USD 726.36 million by the end of Mar-24. Meanwhile, imports during this period slightly decreased by 2% in volume (262,809 mt) but increased by 21% in value, primarily driven by imports from Spain (+182%) and Belgium (+63%).

India

India Aims to Expand Fruit and Vegetable Exports to Russia with Focus on Potatoes and Pomegranates

India expressed interest in broadening the spectrum of fruits and vegetables it exports to Russia, mainly focusing on potatoes and pomegranates. The Russian phytosanitary service has conveyed the phytosanitary requirements set by the Eurasian Economic Union (EAEU) for these product imports. In line with the agreements reached, Rosselkhoznadzor is awaiting detailed information from the Indian side regarding the projected export volumes of potatoes and pomegranates, their cultivation areas, and the distribution of quarantine pests in India associated with these crops. Once this information is received, both parties will further discuss the expansion of Indian fruit and vegetable exports to Russia.

Peru

Challenges of Potato Farmers in Peru Amid Price Plunge and Rising Costs

The oversupply of potatoes in Peru has long been a significant issue, exacerbated periodically by market conditions and challenges. Before the pandemic, this situation led to social protests among farmers in Peru, primarily due to sharp declines in farm-gate prices and a perceived lack of support from the government. Producers argue that despite their efforts to improve efficiency and competitiveness in potato production, the state's failure to support them has left them vulnerable. In key potato-producing areas like Andahuaylas in Apurímac, the current farm-gate price for top-quality potatoes has plummeted to USD 0.16 per kilogram (kg). This price drop came when labor costs were rising, pushing some farmers to consider leaving their crops unharvested. Despite the financial losses they face, others continue harvesting to salvage some of their investments. To put this into perspective, the cost of cultivating potatoes averages around USD 4701.60 per hectare (ha). With an average yield of 25 mt/ha and a farm-gate price of USD 0.60/kg, farmers are experiencing losses amounting to approximately USD 783.60/ha.

Uzbekistan

Uzbekistan Plans to Harvest 4.11 MMT of Potatoes in 2024

Uzbekistan plans to grow and harvest 4.11 mmt of potatoes in 2024. For this harvest, potatoes were planted on 202.8 thousand ha of land, with an expected average yield of 203 centners/ha. Additionally, potatoes will be planted as a secondary crop on 50 thousand ha, with about 150 thousand mt of seed potatoes prepared for this purpose. In the first four months of 2024, Uzbekistan exported 514.8 thousand mt of fruits and vegetables, totaling USD 298.5 million in export value.

2. Weekly Pricing

Weekly Potato Pricing Important Exporters (USD/kg)

Yearly Change in Potato Pricing Important Exporters (W24 2023 to W24 2024)

France

In W24, the wholesale price of French potatoes increased sharply by 21.05% week-on-week (WoW), reaching USD 0.69/kg. This price surge was due to limited supply and consistent demand from regular clients. Since Sept-23, Italy and Spain have been importing significant quantities of French potatoes due to reduced domestic production in Italy and ongoing demand in Spain. This trend continued into 2024, with strong demand persisting from Italy particularly, leading to increased exports of French potatoes to these markets compared to previous years. Spain remains the largest importer of French potatoes, with shipments accelerating at the beginning of 2024.

Germany

Germany's wholesale potato prices in W24 decreased by 3.70% WoW to USD 0.78/kg from USD 0.81/kg the previous week. Similarly, YoY prices of 16.37% declined. The price decrease was due to the scarcity of early potatoes in 2024. Farmers in Germany encountered difficulties in planting due to heavy rainfall in Feb-24 and early Mar-24, affecting southern and southwestern regions. The excessive rain led to challenges in field access and delayed starch storage, which further complicated the harvest process.

Pakistan

Pakistan's wholesale potato prices in W24 remained unchanged WoW at USD 0.26/kg. However, YoY, prices increased significantly by 28.82%. This rise is due to the upcoming festive season of Eid al-Adha, during which the prices of vegetables, including onions and potatoes, typically increase. Additionally, Pakistan experienced a high inflation rate in early Jun-24, reaching 21.69% nationwide, which contributed to the price increase in agricultural commodities like potatoes.

Egypt

Egypt's wholesale potato prices saw a significant decline of 33.33% WoW and 53.84% YoY, dropping to USD 0.26/kg from USD 0.39/kg in W23. This decline coincided with the active export season for Egyptian potatoes. Being one of the top 5 global potato exporters, Egypt exports extensively to markets including Russia, the European Union (EU), United Arab Emirates (UAE), Lebanon, Iraq, Kuwait, Syria, and even distant countries like Indonesia. The devaluation of the Egyptian pound at this time helped alleviate the potato shortage crisis in Europe, where prices were hitting record highs. Despite disruptions due to Houthi activities in the Red Sea, Egypt's potato exports to the EU remain attractive due to competitive pricing facilitated by the currency devaluation.

3. Actionable Recommendations

Expand Export Market Opportunities and Phytosanitary Compliance

Countries looking to expand their potato exports, such as India aiming to increase shipments to Russia, should prioritize meeting stringent phytosanitary standards. Enhancing collaboration between agricultural ministries and phytosanitary authorities is essential to streamline export procedures and ensure compliance with importing countries' regulations. Moreover, conducting detailed assessments of potential export volumes, cultivation areas, and pest distribution is crucial to address any regulatory hurdles. By facilitating market access through adherence to international standards, countries can capitalize on the growing global demand for potatoes and diversify export revenue streams.

Invest in Technological Innovation and Sustainable Farming Practices

Countries like Uzbekistan, planning significant potato harvests, could leverage technological innovation to enhance productivity and sustainability. Investing in modern irrigation systems, precision agriculture technologies, and climate-resilient potato varieties can optimize resource use and minimize environmental impact. Moreover, promoting sustainable farming practices such as organic farming and integrated pest management improves crop quality and also aligns with global consumer preferences for environmentally friendly produce. By integrating these practices, Uzbekistan can achieve higher yields per hectare while reducing input costs and enhancing long-term agricultural resilience.

Enhance Agricultural Support and Price Stability for Smallholder Farmers

Countries facing challenges with potato oversupply and fluctuating prices, such as Peru, could benefit from enhanced government support initiatives. Governments should consider implementing targeted agricultural subsidies, price stabilization mechanisms, and insurance programs to mitigate risks for smallholder farmers. This support is crucial to ensure fair compensation during periods of price volatility and to incentivize continued production even when market conditions are challenging. For instance, Peru could explore subsidized storage facilities to help farmers manage crop surpluses effectively and prevent losses during periods of oversupply.

Sources: Eastfruit, Interfax, Argenpapa, TerreNet, Kvedomosti