The North-western European Potato Growers (NEPG) provided an industry update on 7th July 2023, shedding light on the current state of the potato industry. The revised estimation in the update reveals that potato acreage in the region is 2% to 3% higher than previously anticipated, marking the highest acreage since 2020. However, the challenging growing conditions of wet plantings followed by prolonged dry weather experienced throughout the season raise concerns about overall crop yields.
The combination of delayed planting, unfavourable climatic conditions, and limited rainfall has significantly impacted crop development, particularly affecting flowering and tuberisation in large areas. Market sources indicate that many growers are apprehensive about the outcome of the 2023 harvest.
As anticipated, numerous growers have shifted their focus from the seed and starch sectors to the processing potato sector, which is experiencing high demand. Within the NEPG region, the seed and starch sectors are expected to decrease by 15,000 hectares according to the NEPG update. Notably, the Netherlands and France have seen a decline of 2,500 hectares in seed potato area, while Germany, Belgium, Denmark, and Scotland are also projected to experience declines. The NEPG report highlights that a loss of 10,000 hectares of seed material could potentially decrease the 2024 crop by up to 100,000 hectares.
Demand for potatoes remains strong. Processors in Western European countries have been striving to meet the global demand for finished potato products. This supply-demand mismatch has led to soaring free-buy prices within the industry; the Mintec Benchmark Prices for Processing Potatoes EXW Netherlands [Mintec Code: PO29] were assessed at €580/mt on 7th July 2023, representing a 222% year-on-year increase. According to the NEPG update, the supply of free-buy material was depleted by the end of June or early July, and the earliest crops are not expected until mid-July.
