Why Global Potato Prices Cannot Be Compared Without Understanding the Supply Chain
Potato prices at farm gate, ex-warehouse, wholesale, processor contract and retail levels reflect different transactions. Comparing them without adjustments can create misleading impressions of shortages, trade opportunities and growers' returns.
Different markets, different prices
Potato prices at farm gate, ex-warehouse, wholesale, processor contract and retail levels reflect different transactions. Comparing them without adjustments can create misleading impressions of shortages, trade opportunities and growers’ returns.
Specifications matter
A quotation must indicate country, collection date, product type, variety or quality grade, unit, original currency, and terms of delivery. Table potatoes, fries-processing potatoes, crisping potatoes and certified seed potatoes are separate markets. Grading, washing and packaging also affect price.
Storage and currency conversion
Sales after months in storage involve electricity, labour, shrinkage, rejects, working capital and quality risks. Exchange rates are useful for presenting cross-border prices but do not remove differences in logistics, taxes or Incoterms such as EXW, FOB and CIF. The original currency and dated exchange rate should be retained.
Weekdays. Unsubscribe in one click.
A minimum reporting standard
Each observation in a global potato bulletin should carry its source and date, country and region, supply-chain stage, specification, delivery conditions and transaction status. Asking prices should be distinguished from verified completed transactions and editorial estimates. Standardised metadata make market comparisons more credible.
Source
FAO, producer and agricultural price statistics methodology: https://www.fao.org/faostat/en/#data/PP .
