Potato market chronicle march 2022

Publication author : Jérôme Bonnier – J B Grains SARL

Potato market chronicle march 2022

rofessionals have to reinvent themselves every year: there was covid, then telecommuting, Brexit, Israel’s year of land rest, and now the conflict in Ukraine. With all these disruptions, the industry is finding it hard to regain momentum. The conflict in Ukraine is raising awareness that our globalized profit model, advocated by the giants, can collapse at the snap of a finger. Raw materials, gas, wood, grain, oil, inputs, seeds… many of the materials essential to our equilibrium pass through or come from this country. Our economic model of cheap supplies is collapsing. Growers are faced with a major economic choice for the survival of their farms: produce vegetables that require labor (difficult to find), equipment, time and energy for production and processing, or switch to well-remunerated cereals. For some, the choice was quickly made, with industrial potatoes and grain. Thanks to higher prices, simpler storage conditions and more flexible quality criteria, the area dedicated to industry is increasing, while that dedicated to the fresh market is likely to decrease. With the quality requirements of this market becoming ever more stringent and less profitable, it’s not impossible that supply will shrink, leading to a more sustained, if not very sustained, market price. In the meantime, supermarket sales are stagnating or declining, our Spanish and Italian customers are importing less, and Italy is increasing slightly… It remains to be seen what impact the cost of fuel will have on these destinations. If the Ukrainians don’t sow potatoes or onions, let alone sunflowers, our whole model could be seriously challenged into question. Planting of French early vegetables is underway. The first Breton plants should arrive around June 1. There are also reports of plantings in Beauce in mid-March. Let’s be positive: people, whether displaced or not, will have to be fed, and potatoes are still part of the staple diet. In view of these changes, it’s going to be a real struggle to find potatoes on the open market next season.