What a Season!!

After a number of seasons of low potato prices, 03/04 is certainly finishing on a high.



Growers� expectations have been firm all season following the news of a 14% fall in plantings and a poor growing season exacerbated by the fine summer, which created below average yields. The news that Southern Europe, in particular, would be short of potatoes only added to these sentiments.



Ware prices started firm, gathered some momentum after Christmas and went stratospheric in Spring. Processing prices, on the other hand, have been steady all season. Although generally above contract prices, there has been none of the panic seen in the ware market and therefore none of the price leaps. The chipping sector continues to be heavily influenced by imports, reportedly running at the raw equivalent of 800,000 tonnes p.a., while the crisp processors have enjoyed above normal conversion rates caused by very high dry matters which have created surplus volume.



Southern Europe saw exceptionally high prices at the end of season and tens of thousands of tonnes from France, Holland and UK were imported.



But what of the new season to come?



In the UK, planting is well behind the norm. A cold, wet spring has not helped those crops planted on time and it is estimated that plantings could be down again. Good stock movement should mean there will be little carryover and if demand remains firm, it is likely that crops will be lifted early, reducing overall yields.



Europe seems to be planting more this season. France has recently announced an estimated 4% increase in plantings. Crops have gone in well in good conditions. However, southern Europe has again suffered inclement weather and early lifting has been difficult.



The weather, as ever, will play a major role in shaping the season ahead.