Spain: Global potato overproduction places the best price below costs
The León market held this week has begun quoting potatoes at prices that do not cover production costs, which will ultimately lead to serious losses for farmers, according to ASAJA.
These initial prices show year-on-year declines of between 47% and 55%, depending on the variety; and are higher than at the end of the previous season.
ASAJA Castilla y León already asked farmers in mid-August to stagger the harvesting of potatoes to curb downward price pressure from operators and retailers.
World blockbuster
The León market provides data on this global overproduction: in Europe, the cultivated area increased by 5.5% this year, reaching 1.47 million hectares, the highest in years. Production in Germany, France, Belgium, and the Netherlands exceeds the contractual capacity of the processing industry, with large additional volumes produced outside of contract (unrestricted purchase).
New actors
At the same time, two major players, China and India, are entering the market with record harvests, generating a surplus that far exceeds local storage capacity and pushing prices down. At the same time, Egypt and Turkey are positioning themselves as major global exporters, increasing the excess supply.
Fuente: Traducido por Argenpapa de: agroclm.com
