"The entire chain will have to take a step back this year and hit the proverbial reset button to regain our global competitiveness," was the motto of Ferdi Buffen, also known as 'der Kartoffelpapst', during the Weuthen Potato Day on 28 August in Schwalmtal, just across the border. As usual, the Weuthen head opened the event with a comprehensive look back and forward at the potato season, which has become a benchmark for many Germans and Dutch at the start of the new main harvest.
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"I thought I had seen it all in over 40 years in the business, but this year we face entirely new challenges again," Buffen continued, pointing to the growing oversupply caused by acreage expansion, very high yields per hectare, and declining sales in both the processing and table potato segments. "All these factors create a toxic cocktail, for which there is no remedy as yet." However, some of these developments are self-inflicted by the sector, Buffen noted.
© Hugo Huijbers | FreshPlaza.com
This year's potato day again attracted a lot of interest from the Netherlands. Clockwise: Pieter Priem of Flikweert Vision; Johan van der Stee and Erik Oggel of Meijer Potato; Hans van den Oever, Karl Lentzen, and Ron Verlinden of Mooij Agro; and 'last but not least' Weuthen CEO Ferdi Buffen during his opening speech.
Difficult transition between early and main crop
The bulk of the early potato varieties entered the market three weeks early and in large volumes this year, quickly leading to considerable congestion in the markets. Based on the trial harvests, it can be concluded that good peeling table potatoes are widely available across all growing areas and of good quality. However, market access for the main crop varieties is still blocked in some regions by stored early potatoes. Some of these surplus potatoes will inevitably have to be processed into animal feed or biogas. Buffen: "We have to prepare for a record harvest in Europe, where only top qualities can be marketed." In Germany, 13.00 to 13.50 million tonnes are expected this year, with a total of 28.00–29.00 million tonnes forecast in the EU-4 region.
In the table segment, Weuthen expects downward price adjustments in the coming weeks. "These will probably be moderate at the planned quantities. For baby potatoes, there are good outlets in both the table and processing sectors. For table potatoes from storage, we expect prices between €18.00 and €22.00/100kg for contract volumes and varieties. Speculative cultivation will hardly find any buyers in this segment either," Buffen said.
Despite the current dip in sales, demand in all segments, particularly in the processing industry, will continue to rise. However, large-scale acreage expansions in the future are pointless, Buffen reminded his audience. "In that respect, we already expect a contraction in the short term in regions with less favourable conditions and further away from sales markets, such as French fry potato cultivation in Bordeaux."
Global competition increases
Finally, Buffen urged his peers to join forces and compete not against, but alongside, players from North and South America, India, and China. "These countries also see benefits in the large-scale export of potato products. This makes it all the more important for us to take another critical look at every link in the chain. If our customers are doing well, we traders and (contract) growers also benefit. After all, what doesn't come in at the front of the chain, we can't spend at the back either."
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For more information:
https://www.weuthen-gmbh.de/