W27: Potato Update

In W27 in the potato landscape, Egypt's potato exports to the European Union (EU) market are expected to reach their highest level in the last three years. The 2022/23 EU potato season was marked by catastrophic aftermaths of the summer drought, which resulted in a shortage of potatoes, prompting higher import volumes. Egypt has exported 211 thousand metric tons (mt) of potatoes to the EU in the first four months of 2023. The EU is one of the biggest importers of potatoes globally, with annual imports from non-EU countries ranging from 280 thousand mt to 380 thousand mt. Egypt and Israel dominated the non-EU potato import market, accounting for 88 to 96% of these imports.

Due to improved weather conditions and the resumption of harvesting activities, Ukrainian potato prices decreased, resulting in increased supply. The producers lowered potato prices due to seasonal supply and low quality, resulting in an average price decrease of 20% WoW with potatoes trading at USD 0.44-0.66/kg. Spain's highest-yielding region of potato, Castilla y León, started the potato harvest earlier than in 2022. However, Southern Spain's early potato harvest, which was affected by rain, is over. The season has been challenging due to excessive rainfall, reducing supply and causing shortages and high prices on the free market. However, the potato supply and demand are expected to stabilize with the Castilla y León harvest. Meanwhile, the Netherlands faces challenges in potato production and export due to an ill-considered government policy, hindering growth. Belgium and France gain more space, and this is where EU potato production growth is taking place.

Potato production in Washington and Oregon decreased in 2022, and prices have been elevated through mid-2023. According to the United States Department of Agriculture (USDA), Oregon potato production totaled 1.26 million metric tons (mmt) in 2022, down 5% from 2021. Washington potato production totaled 4.59 mmt in 2022, down 2% from 2021. In Brazil, the potato harvest in Paraná state is in an advanced stage, with 78% of 11 thousand hectares (ha) already harvested. The expected production is 323.7 thousand tons. 88% of the 2.4 thousand ha are performing well, while 12% are of average quality. The average weekly price producers receive in Paraná is USD 26.99/50kg bag (BRL 130.98/50kg), an 11.3% decrease from the previous week. Lastly, Pakistan's total production of potatoes has doubled in the past decade, mainly due to the increased cultivated area. However, Pakistan's yield per acre is lower compared to Turkey, Iran, and Egypt. To improve the production of potatoes, Pakistan needs to adopt better seed varieties and improve on-farm management.