"We are currently experiencing one problem after another", Ioannis Ioannidis of Fa. Johann Koch e.K explains. "On one hand, we do not have enough large potatoes, and on the other hand we have damaged potatoes to deal with." The hot, dry summer has left its mark on Southern Germany's production. "We had many problems with the drought," the expert continues. "There are hardly any 50+ products this year. This is especially problematic for exports."
"The door is shut"
Ioannidis describes: "Moreover, the producers are demanding higher prices for their produce. The door is shut. The farmers expect over 20 Euro per 100 kg. But our absolute upper limit is around 17 to 18 Euro." A problem that leads to difficulties, especially in export.
Ioannidis says that while the demand in Germany is quite stable and remains at a level similar to last year, it is difficult for the Southern German producers to satisfy the demand from abroad. "The demand in export is there, but the asked prices are too low. Prices of 17 Euro are being demanded, which we can hardly service. It is quite bad over there at the moment."
Competition
"Furthermore, the export potatoes are turning out to be too small," the expert reports. To the countries to which we export, demand is for potatoes of a larger caliber, 50+. But large produce is scarce."Competition from France is threatening. "I am a bit afraid. Prices are currently being lowered in France, and this could be quite the problem for the German potatoes. If this happens, we also need to go down in price."
The German potato trade also has the current weather to deal with. "The weather is a problem. It was around 20 degrees yesterday. This can lead to problems for warehouses without cooling facilities. The potatoes will start to sprout." This leads to damage and loss in quality.
Two price brackets
"I am worried that we are headed towards a situation with two price brackets," says Ioannis Ioannidis. "One price for export products that are sold a bit cheaper, and a price for packageable products for the German market."
Rising demand before Christmas
Ioannidis sees a rising demand in the coming weeks: "Demand will rise further before Christmas. Demand will rise in Eastern Europe, for example in Slovakia and Czechia. They have run out of their own products by now and are beginning to import. But we will also have to wait and see how satisfied the customers are with the German potatoes over there.
