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How the mighty fall, again…

Posted on 26/09/2017

By the time you have finished reading this, we will have moved over to a new harvest main crop which brings its own challenges, not least because of the variable quality of raw material we are witnessing from the farms. However, from a consumer point of view, it is good news that potato prices have fallen over the last two months. If we look back to April 2017, the day and 6 month potato future prices were certainly a lot higher than where we find them today. As I write this newsletter, the raw material prices across Europe are falling below €100/ton.

Whilst this may be good news for consumers, it does not change the global supply & demand dynamics. What we are seeing today is the continued rise in the consumption of potato based products across many countries. This is evident from the processed potato export figures as published by World Potato Markets where both Europe & North America processors are enjoying record exports in volume & value. So, the fundamentals of rising demand are in place with supplies either lagging as we witnessed in 2015-16 or sometimes, optimistically running a little bit ahead of demand. For now, consumers should welcome the fall in potato prices in Europe, although for UK consumers once the currency conversion is factored in, the result is not as pleasing.    

I trust you will find the Q3 newsletter informative. As ever, we are always happy to receive feedback/suggestions/ideas from our customers so please feel free to get in touch with me directly at m.essa@aviko.com or through our customer service centre at ukhelpdesk@aviko.com

Mohammed Essa,
Commercial Director
Aviko UKI

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