The price of potatoes in Europe reached a record level due to the abnormal heat in the Central and Southern parts of the region. A similar situation was observed last year, when drought destroyed 12% of the crop.
The decrease in crop volume has already been reported by manufacturers in France, the Netherlands and Germany. Potato cultivation in Spain was not affected so much by drought, while due to rising prices in foreign markets, the country's exporters significantly increased supplies to other countries.
All this led to a decrease in supply and almost a doubling of prices. Moreover, price increases are noted not only in the wholesale market, but also in retail.
The most significant losses are industrial consumers of tubers.
«We buy potatoes at a price twice the normal level. Now a kilo of potatoes costs 0,58 euros, although we usually paid 0,3 euros"Said Julian Rubira, general manager of the Doruel chips factory in Villarquemado in the province of Teruel in Spain.
According to the head of the Alianza Agroalimentaria Aragonesa (UAGA) union Tonyo Rome, the drought led to a decrease in yield by about 20%, which, with a general decrease in product quality, led to a sharp increase in prices. A month and a half ago, the cost of a ton of potatoes in the Spanish Murcia and Andalusia increased from 180-200 euros to 400 euros, but recently potatoes from Castile-Leone appeared on the market, which allowed to reduce prices to 300 euros.
Market instability and high volatility of the sector is the main reason for many manufacturers to leave the business. In fact, the country reduced the cultivation area from 200 thousand ha to 70 thousand ha.
«A few years ago, lots of potatoes were sold at 80 euros per ton with a production cost of 120 euros”, Added Julian Rubira.
Market participants noted that the average cost of potatoes for the end customer increased to 1 euro per kg, while previously it usually amounted to about 0,34 euro per kg.
A source: https://fruitnews.ru/