Potato price rise due to cultivation issues
Due to the current scarcity of early potatoes, the prices have increased significantly compared to last year. The main reason for this is the delayed harvest caused by rain that kept farmers from working on the fields. Additionally, there is a reduction in the supply coming from abroad. Experts predict that the prices will go back down in July.
Christoph Hambloch from the Agricultural Market Information Company in Bonn reports that the average price for a kilogram of boiling potatoes was 1.63 euros for the past two weeks, while in the same period last year it was 1.54 euros. He assures consumers that the prices will fall again, at least by July.
The low supply of early potatoes this year has been the primary cause of the higher prices. Farmers in Germany could have begun planting potatoes in traditional growing areas for early potatoes as early as February and March. Unfortunately, there were heavy rains in the south and southwest afterward, particularly in the Rhineland, the Netherlands, and Belgium, which prevented them from working on the fields.
When it comes to early potatoes used for direct marketing and ware for the wholesale market, farmers in Lower Saxony, the Palatinate, and Baden-Württemberg started their harvests from the second half of May. However, their sales represent a niche market, as the more significant business with packaged potatoes for supermarkets will begin in the second half of June. The persistent rains in spring have delayed the harvest, as the tuber growth does not yet have enough strength.
Additionally, there are fewer early potatoes coming from countries such as Israel, Egypt, and Spain. Spain, for example, had a shortage of early potatoes due to drought in January and February. The short supply from these countries has further reduced the availability of early potatoes in the market.
Another factor impacting the potato supply is the decreasing production of seed potatoes. Hambloch explains that while the process of producing seed potatoes is risky, it requires a significant investment, so there must be a corresponding price. Many farmers are dissatisfied with the returns and have abandoned growing seed potatoes.
The ban on certain plant protection products also affects the production of seed potatoes, as they can no longer be used as seed potatoes. "If you put all this effort into it and then can't use the seed potatoes, it's like it was all for nothing". As a result, farmers are finding it increasingly challenging to find growers for seed potatoes.
Ultimately, it's uncertain whether the current flood situation in Bavaria and Baden-Württemberg will have any impact on the potato harvest. Hambloch noted that the effects are still unclear.
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The price increase in early potatoes has impacted consumers, causing them to pay more for their potato purchases. Due to the scarcity and delayed harvest, trade of these potatoes from both local farmers and foreign countries has decreased, leading to an increase in consumer prices.
Experts predict a decrease in consumer prices for early potatoes by July, but the current trade situation still leaves many consumers paying higher prices than they did last year. The reduction in supply from countries such as Israel, Egypt, and Spain, combined with the decreasing production of seed potatoes, has resulted in a shortage of early potatoes, leading to increased consumer prices.
