Early potato prices Spain continue falling trend

The Ministry of Agriculture is carrying out a promotional campaign to support Spanish new potatoes.…

The Ministry of Agriculture is carrying out a promotional campaign to support Spanish new potatoes.

The Coordinator of Agricultural and Livestock Organizations (COAG) has provided some data that illustrate the poor performance of early potatoes, which are grown in Mediterranean regions in winter or early spring, depending on the weather in each area, and are harvested between April and June. Prices haven't stopped falling in the production areas of Valencia, Alicante, Andalusia and Extremadura and have come to touch lows of just 8 cents per kilo (below production costs), and things are not expected to improve, since in a few weeks the bulk of the domestic supply, with seasonal potatoes from Castile-Leon and La Rioja, will hit the market.

One might think that prices are falling because of oversupply, as it occasionally happens, but this time it is not the case. Spain's potato acreage has shrunk by 26% over the past ten years, according to COAG, which supplied data provided by the Ministry. In 2004, 102,120 hectares were planted, while this season the figure has amounted to just 73,158.

The origin of the problem is twofold. On the one hand, there is a replacement process in the Spanish market. Freshly harvested new potatoes, which are undoubtedly of a higher quality due to their freshness, are being replaced by old imported potatoes, which have usually been kept in cold storage for more than six months and have been treated with chemicals to prevent them from germinating, so that by the time they go on sale they can be passed as fresh, even if they aren't anymore.

The second part of the problem is a direct result of the first. Since the quality of the potatoes on sale throughout the year is not the most adequate, consumers are disappointed and this has resulted in a drop in consumption, which COAG estimates at around 12%.

In short, the situation is marked by a reduction in Spain's potato acreage and increased imports followed by a collapse of consumption.

Potatoes are imported from various sources, but the largest suppliers are the Netherlands and especially France. COAG has blamed commercial distribution chains, which are largely French-owned, so it is conceivable that there are shared interests. Meanwhile, what works for marketers that do not rely on foreign capital or need to place own foreign potato crops is to comfortably follow these trends. They are satisfied with having access to a constant supply of uniform produce with a good appearance and moderate prices. Quality is not important, or at least that's what can be inferred, but confusion is still rampant.

Some in the sector affirm that one of the practices carried out is the thorough washing of old potatoes to remove any signs of ageing and make them look as if they are freshly harvested potatoes. They also point to the misinformation of consumers, who end up not buying potatoes again.