China: Potato analysis: demand remains weak, but late-season price increase remains possible

Potatoes have changed from "low-price vegetables" into "high-price vegetables" because the overall vegetable price dropped when leafy vegetables entered the market in large volumes. Furthermore, potato supply is slow and demand is weak. Data from potato.agri.cn shows that the mainstream sales price of potatoes in Dingxi, Gansu, is currently around 0.68 yuan [0.10 USD] per 0.5 kg. The supply volume remains low, and the price therefore stable, because of rainy weather in recent weeks and a shortage of workers to package the potatoes.

Potato analysts say that potato supply is more than sufficient in the short-term and the price is relatively stable. When temperatures drop even further, then the supply volume of open-field vegetables will decrease, and the supply volume of greenhouse vegetables will become dominant. This will raise the overall vegetable price, and potatoes will become relatively cheap again, which may increase their sales volume.

Potato production areas in the north are currently in the season when traders purchase potatoes to stock their warehouses. The cost price of potato storage therefore puts a limit on the purchase price of potatoes. Potato trade in many production areas is in a deadlock and the trade volume is small. The price in most production areas is similar to last year.

Source: Gansu Farmer’s Paper