In the UK, the Mintec benchmark price for packaging potatoes fell 5% month-over-month (m-o-m) to GBP190/MT for the week of November 23. Since the harvest began, the price of potatoes has gradually decreased as more of the crop has become available on the market and the major crop harvest is well underway.
Prices have just dropped, although they are still up 31% from a year ago (y-o-y). Production expenses for potatoes are still rising year over year, primarily due to increases in energy, fertilizer, and transportation costs. Due to growing electricity rates, the price of storing potatoes increased dramatically from 2021 to the present. This is a big price driver at this time of year. Due to greater drying and storage costs, some producers are anticipated to sell off their supplies early in the season, which will lower prices in the short term and cause tighter supply later in the season.
“So far this season, demand for free-buy packing supplies has been muted. Many supermarkets contracted a higher proportion of their requirements for the 2022/23 season, to limit exposure to volatile prices. Therefore, significant driving factors, including higher input costs, have not been fully reflected in higher retail pricing. Next season, market participants expect contract prices to rise, to account for the increased input costs, which could result in higher retail prices when the 2023 crop is harvested,” according to a recent press release.
A source: https://www.potatobusiness.com
