The extensive lockdown measures lead to production stoppages at potato processors and uncertainties about market developments. The industry is currently not interested in free potatoes. These are increasingly being used as biogas, feed and starch.
The potato processing industry continues to run exclusively on contracted potatoes. There is currently no interest in the free potatoes. Production stoppages as a result of extensive lockdown measures create uncertainty about the further course of the market. This leads to significant quantities of potatoes being marketed in NW Europe for alternative uses such as in biogas, animal feed or starch. Dry, light and visually good potatoes are also marketed for export. However, the export markets remain quietly price-bearing.
Quotes
Last week, PotatoNL recorded unchanged 5.00-6.50 euros for exports. Belgapom repeated the unchanged prices of the previous week: 2.00 euros for both Fontane and Challenger. Last week the futures market rebounded slightly to 6.50 euros. The current uncertainty in the market may also turn out to be positive. The reasoning is that there may be more room in the free market again in a few months. But the futures market did not go beyond 6.50 euros this week, as it is too quiet in the physical market for that.
Belgian production
Total Belgian production is estimated at 4.32 million tons. This is a decrease of 2.0 percent compared to 2019 and comparable to the average of the past three years. Fontane is by far the most popular processing variety. This variety covers 50 percent of the total acreage, followed by Innovator with 15 percent, Challenger with 12 percent, Bintje with 8 percent and the slow-growing Marquis with 7 percent.
Belgian stock
On November 15, the total Belgian potato stock was 3.25 million tons. This is comparable to last year and the average of the previous three years. This represents 80 percent of the gross production. The contracted part is 2.41 million tons, leaving only 840,000 tons for free purchase.
