W24: Potato Update

In W24 in the potato landscape, the cold weather in April 2023 delayed early potato harvest in South Ukraine, causing crop formation and germination and sprouting delays. The initial purchase price for early potatoes has increased from USD 1.36/kg (UAH 50/kg) to USD 0.68-0.71/kg (UAH 25-26/kg), making the potato business profitable. In the Netherlands, drought is causing agricultural problems for potatoes and onions, resulting in lower production. Factors such as wet soil, excessive rain, and extreme dryness worsen the losses, causing issues with the emergence of new plants and damaging the onions. Replacing up to 35% of the failed plants is not feasible due to the limited supply of new seed potatoes and the remaining vitality of the existing potatoes. Further, the Netherlands Food and Consumer Product Safety have implemented an irrigation ban on potatoes in Friesland due to brown rot bacteria. The rising price of packing potatoes in the UK is impacting retailer demand. Supermarkets are opting for contracted supplies to mitigate the effects of high prices in free-buy markets. Meanwhile, early potatoes from Lower Austria have been harvested for almost two weeks following a delayed growing season. Despite a scarcity of 2022 potatoes, domestic production ensures year-round availability.

Irish potato demand is expected to rise due to rising temperatures. Early Rooster potatoes are still being irrigated in some regions, while early Queens varieties are being harvested. Production is average, and supply from the previous season is limited. Peeled potatoes stood at USD 439.51/ton off the land. The US potato industry gained access to the Mexican market for fresh potatoes in May after 25 years of disputes. The industry plans to enter Japan as a new market, expanding market access to include all fresh potatoes, including table stock. This expansion is expected to boost U.S. fresh potato exports by 10-15%, with an estimated USD 150-200 million annual market. Further, Washington potato farmers struggle to meet global demand for processed potato products like french fries, hash browns, and tots. It has led to other countries gaining market share, with more European fries, hash browns, and Tater Tots being sold in Asia than ever before. Canadian Potato Storage Holdings are down 3.3% compared to 2022, but higher than the 3-year average. Shippers are monitoring stocks and metering out old crops to meet commitments. In May 2023, a record 14.4 million cwt of potatoes were shipped from storage, an increase of 13% over April and 4.4% higher than May 2022. Fresh and processing disappearance decreased slightly, but seed disappearance almost doubled, indicating planting began in May.