Europe. More Potatoes Everywhere

According to the initial figures from oficial services and professional organisations, the ware potato production in Europe is clearly more important than last year. Weather conditions in August and September have been very favourable to rapid tuber growth: regular rains, good temperature and rather sunny days. But this late growth was accompanied by heavy rains in some places, and by some quality disorders relating to the accumulation and organisation of the dray matter content, with falling UWW and party glassy tubers in some processing varieties. Crops also had to deal with high late blight: pressure. Harvest conditions were quite good, but the soil conditions became too dry in some regions in the second part of September. A heat wave in early October (above 30ºC!) led to too high internal tubers temperatures, entailing a very high risk of bacterial soft rot development in storage. The mild weather afterwards did not allow easy ventilation, and major storage problems occurred (mainly in Belgium, North part of France and South part of The Netherlands), mainly in varieties susceptible to soft rot, such as Fontane and Innovator. Considerable quantibies were lost (potatoes to cattle feed, or brought back to the field, or sold to biogas installations).

Based on national statistics sources, the production in European Union (early potatoes + ware potatoes + seed potatoes + starch) seems to be between 7 to 10 % higher than last year (see table below). All the North-western countries (except Ireland) have clearly produced more (+ 2 to + 17%). Eastern countries also show higher production, except Poland (-6,5%). In the North of Europe, the situations are contrasted. Southern countries show potato volumes down on last year (-1 to -10%).

But estimations for the NEPG countries on consumption potato production cite increases of 10% and more: +16% in Belgium at 4.19 Mtons, +11% in The Netherlands at 3.93 Mtons., +17% in France at 5.33 Mtons. Great Britain shows a more moderate increase of 3.5% to 6.05 Mtons. Average yield is everywhere the highest recorded for the last 5 years.

Quality problems
For the processing industry, frying quality is not perfect in some varieties because of low UWW and irregular frying colours, or early sprouting problems. Tuber size is (very) large, and some misshaped tubers are often reported, depending on the variety. Small size volumes are very limited. For the fresh market, perfect skin quality (class 8 on the French scale) is more difficult to find than a normal year. Tuber size is certainly high enough, leading in some dry regions to a higher risk of bruising problems.

But the main issue concerns the long-term storage ability of the crop due to the higher risk of soft rot diseases in bulk storage. Ware potatoes for the fresh market are less concerned thanks to their storage in boxes with better ventilation and cold facilities.

Very low price level in the markets
The European markets have adopted a very low level since August, as it: became clear that the yields for the main crop would be rather good. The first: quotations of ware processing varieties started around 50€/t in September, and prices decreased, reaching a level of 20-30 €/ton in November. Storage problems sustained a large supply throughout this period, with potatoes being urgently sold, still at lower prices. Processors are working at full capacity to save as many potatoes as possible. Market observers expect that prices could rise after this difficult period, but probably not before the end of 2011. A weak Euro and a low potato price should make European processed products very competitive on the world ´s markets (Asia, Africa and South America).

Export markets are very quiet, every country having its own production in sufficient quantity for the first months of the season. Prices mid-November are also very low: 60 to 90 €/ton for good washing quality (several varieties in Bigbags, 40 mm + ex-farm in France), up to 150€/ton for top washing quality. Lower quality potatoes receive lower prices. Official export statistics in The Netherlands, France and Belgium are showing lower figures than last year. The winter demand from Eastern Europe countries could be better, as they do not have long-term storage facilities.


Source: Eurofresh Distribution