The Dutch potato processors union, Vavi, recently released the latest Dutch processing figures which showed strong demand for raw material in March 2023. The figures indicate that the processing potato usage for the month stands at 350.7 thousand metric tonnes, up by 11.3 thousand metric tonnes, an increase of 3.3% compared to the same period last year.
The rise in processing potato usage is underpinned by strong global demand for processed potato products. This demand coupled with lower production at the start of the season has led to processors seeking to secure uncommitted volumes leading to the volume of free-buy stocks in stores remaining below average throughout the season.
Additionally, delays to new crop planting in Europe led to market participants suggesting that the arrival of the early crop could be delayed, increasing pressure on stocks for the remainder of the 2022/23 season.
As a result, the prices of European processing potatoes have soared to all-time highs. The Mintec Benchmark Prices for processing potatoes, EXW Netherlands [Mintec Code: PO29] was assessed at €34.50/100kg as of 25th April 2023, an increase of 63.5% compared to the same point last season, and the highest value since the price series began in 2014.
