In times of war, the potato has always been
highly prized, and this is reflected in the farmers’ association COAG. Where it
is not only this tuber that moves at higher prices, based on the Index of
Prices at Origin-Destination (IPOD) that this association elaborates to measure
the comparison of the value chain, other vegetables such as the artichoke have
also seen their price rising, as well as the famous citrus fruit that lives a
quite inflationary season.
Potato, one of the most widely consumed foods
in the world, increased its value in the chain by 529%, and increased by six-fold
(6.29), as it rose to 1.32 euros per kilo in PVP compared to the 0.21 euros
paid at the origin. According to this association, this crisis has not improved
producers' margins.
All the data indicate that consumption of this
tuber in its original form has increased, but many of its derivatives have been
affected in the opposite direction, such as the all-powerful French fries,
which is greatly affected. Its demand has fallen to unforeseen levels due
mainly to the shut-down of caterings, postponement of sports & musical
events, closure of fast-food chains, etc. During this season where Dutch and
Belgian potato should be at its peak, we are finding industrial freezers with
cameras to burst and a derisory price due to an enormous supply that does not
match demand at its worst.
For example, the Dutch market estimates millions
of losses for a market that produces 4 million tonnes at the moment,
approximately 25% of which is destined for export. The estimated total
overproduction in the Netherlands will be 1M tonnes. The Belgian market is not
far from being worse off; it is estimated that there is currently the production
of 1M tonnes stored in refrigeration chambers to the value of 200M euros, which
indicates bad omens. Farmers-Producers-Exporters are preparing for a year that
will surely not be a good one.
We will all do our bit so that when we return,
these agents will be affected as little as possible.
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