"Potato prices have been high in recent years. That affected [the Netherlands'] competitive position. With prices between €0.35 and €0.50, you price yourself out of the export market," says Wim Tuinstra of the Dutch company, Jan Tuinstra BV, commenting on the collapse of potato market prices. "Other exporting countries have jumped into that gap."
© Jan Tuinstra BV
"Lower prices offer opportunities, but we'll have to fight to regain that market," Wim notes, adding that Egypt has recently exported a particularly large quantity of potatoes. He, nevertheless, believes the Netherlands' location could help exports. "Our ports and good logistics offer a good infrastructure. That's an advantage."
Early harvest
The early potato market did not get off to a promising start, and Wim considers that an indication of how the season will unfold. "Early potato prices are much lower than in previous years. Also, Europe's potato acreage seems to have expanded, while the market is shrinking rather than growing. The industry is buying fewer potatoes, which has an impact because that involves large volumes," he says. But the market is not empty either. "In December, we thought there would be a shortage."
"But in late July, there was more in storage than we'd have liked," Wim says. He also notes that, where recent years' weather conditions meant planting could only happen quite late, this year it was much earlier. That means the harvest is earlier, too. "Add up all these factors, and this season's prices will probably be under pressure. But the market will determine the price level at which we'll operate."
Jan Tuinstra BV supplies the potato industry and packages for exporters in sizes ranging from 5 kg to big bags. West Africa and the Caribbean are major export markets. "If the potatoes' quality is good and prices are competitive, the Caribbean is a constant market. In the second half of the season, Eastern Europe is often a demanding market, too," Wim explains.
"Their local cultivation has, however, expanded considerably in recent years." That is also what Wim considers the biggest challenge in potato exports: ensuring continuity in sales. "To guarantee sales of their own crop, many countries temporarily close their markets to exports, resulting in revenue losses. Usually, demand from other countries doesn't fill that gap, unless there's a problem."
Limited variety choice for distant exports
When it comes to potato exports, there is another challenge: the limited choice of varieties for long-distance exports. "Sprout inhibitors were discontinued in 2020, so you can't send some varieties to distant destinations. Exporters want varieties that don't sprout easily, so they're suitable for transport by ship for around four to eight weeks. That means the choice for long-distance export is limited," Wim concludes.
Jan Tuinstra BV
Molendijk 83a
3249 AN Herkingen
Tel: +31 (0) 187-669555
[email protected]
www.jantuinstrabv.nl