Potato processors continue to face challenges in sourcing materials, and the limited supply they can secure comes at a high price. The Mintec Benchmark Prices for Processing Potatoes EXW Netherlands [Mintec Code: PO29 ] were assessed at €575/mt on 27th June 2023, representing a 202% year-on-year increase. Processing plants are reportedly operating with contracted materials they bought a few weeks ago. Market sources have said that the Dutch processing summer shutdowns are expected to be elongated due to the longer-than-usual gap between the old and new crops, as the bulk of the harvest is anticipated to be delayed.
The May figures released by VAVI (Dutch Association of Processors) revealed that potato usage for processing stood at 332.9 thousand metric tonnes, reflecting a decline of 6.4% compared to the same period last year.
The EU Commission’s June Mars Report has readjusted potato crop yields -2% since the May forecast, but there is still a projection of a 4% increase compared to the five-year average. However, market sources view this estimate as overly optimistic and anticipate lower yields due to delayed plantings and the dry weather conditions experienced in various potato-growing regions across the EU.
Source: VAVI