W44: Potato Update

In W44 in the potato landscape, extreme weather conditions have impacted Switzerland's 2023 potato harvest, resulting in a third consecutive year of low harvests, particularly for industry-used varieties like fries and crisps. The potato shortage is estimated at around 100 thousand metric tons (mt) across Switzerland, leading to increased imports to meet industry needs. To address this, developing and adopting more weather-resistant potato varieties is necessary, though this transition will take several years.

Due to fluctuating demand for fresh produce and reduced production, potato prices in South Africa surged by 102% in Oct-23, doubling over the past year, as reported by the Western Cape Department of Agriculture. According to Potatoes South Africa, load-shedding, which disrupts consistent irrigation practices, is a significant factor driving these price increases. The potato prices ranged from USD 5.95 to 8.12 per 7 kilograms (ZAR 110 to 150/7kg).

Potato prices in Bangladesh have increased between USD 0.54 to 0.63/kg (BDT 60 to 70/kg) in W44, exceeding the government's fixed rate of USD 0.32 to 0.33/kg (BDT 35 to 36/kg) on September 14, with prices increasing by 12% in the past month, despite the government's claims of higher production. This increase comes amid concerns about reduced potato production by the Cold Storage Association. The Ministry of Agriculture opposed the plan to import potatoes to stabilize the domestic market.

In the first eight months of 2023, Russian potato exports doubled to around 80 thousand tons. Despite an average annual import volume of 500 thousand tons for the 2021/22 season, potato imports to Russia decreased to 356 thousand tons due to Russia's high harvest and low domestic prices. Meanwhile, potato production in Russia remained at 305 thousand hectares (ha) in 2023, with favorable weather conditions and high yields. In Sep-23, the average production was over 30 tons/ha, compared to 25 tons a year ago. Despite a high harvest, the Kaluga Region's Minister of Agriculture reported a low selling price of USD 0.044/kg (RUB 4/kg) for agricultural producers. Regional authorities are considering compensating potential losses to agricultural producers. A federal project to support potato and vegetable production began on Jan-23, planning to allocate at least USD 54.4 million (RUB 5 billion) annually. The amount of state support for a region will depend on its contribution to the overall harvest.

Lastly, Azerbaijan's potato production needs to be increased to meet local demand, leading to potato imports from Iran. However, Iranian potato imports have been suspended due to harmful organisms, resulting in predictions of increased potato prices. During the first half of 2023, Azerbaijan's potato imports decreased by 16.9% year-over-year (YoY), amounting to 83.1 thousand tons valued at USD 23 million, a 12.3% YoY decrease in value. Additionally, potato exports from Jan-23 to Sep-23 totaled 71 thousand tons, worth USD 31.1 million, an 11.6% YoY decrease in value and a 9.1% YoY decrease in volume.