Due to the drought problems of recent years and the resulting crop losses in the potato industry, many cultivation companies decided to expand their existing areas. However, the subsequent increase in harvests led to a significant oversupply on the potato market. Especially in this sales year determined by corona, with a lack of demand from the catering industry and large consumers, the surpluses are putting considerable pressure on the market, says Johann Schmidt, potato trader from Dinkelshausen in Bavaria.
A look at the potato warehouse of the company Schmidt.
The harvest of the medium-early consumer varieties is virtually closed: the Bavarian Bureau of Statistics in Fürth reports that this year’s potato harvest is 15% above the long-term average. In Bayern, 1.9 million tonnes of potatoes can be harvested. This means that there would be about 145 kilos of potatoes from their own region available for every bayern resident. “A slightly above average harvest with good quality”, says Johann. Nevertheless, prices are well below average: the price of industrial potatoes fluctuates on average around 5 euros per 100 kg, the price of consumer potatoes is around 6.50 euros per 100 kg depending on the variety.
Johann Schmidt is at the helm of the Bavarian family business. He supplies his customers with both consumer potatoes and industrial potatoes.
Area expansion & oversupply
The current low prices are, according to Johann, very clearly the result of the rapid expansion of acreage in recent years. “In these times of climate change, the potato industry suffers from drought problems and associated crop losses almost every year. That is why the areas in almost all major potato growing areas of Germany have been significantly expanded in recent years.”
In this exceptional year of corona, a significant proportion of stocks – both in industry and in consumer potatoes – are not used at all, as sales in the hospitality industry and in large consumption have been partially shut down. The effects of the crisis can also be seen in exports, says Johann. “We export a lot to Italy, but we also export the extra large potatoes to Romania, Slovenia and the Czech Republic. Extra large potatoes were wanted in recent years and therefore they got a good price for them. This year it is exactly the opposite and the prices for this are low.”
Modern variety spectrum
Despite the difficult conditions in the current potato industry, Johann believes in the potential of the Bavarian potato. “Both in the consumer varieties – for example Gala, Queen Ann and Belmonda – as well as the industrial varieties such as Agria and Fontane – our racial spectrum is continuously developed. Nevertheless, people are still looking for new resistant potato varieties.”
According to Johann, the biggest challenge of the near future will still be the supply problem. “The potato area simply needs to be reduced, because at this price formation the production costs can hardly be covered. Unfortunately, the existing large companies are only getting bigger and market conditions are becoming more difficult,” reads the conclusion.
For more
information:Schmidt Agrarhandel GmbH
Johann
Schmidt
Dinkelshausen B29 86676 Dinkelshausen
Tel:
08435 / 16 92 Fax: 08435 / 16 90
Mobile: 0171 / 6 42 22 75
Email: info@schmidt-agrarhandel.com
www.schmidt-agrarhandel.com
Published time: 5 Oct, 2020
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