Poland: Larger potato production may boost exports

In Poland, potato prices are much lower than in Western Europe, but exports should also increase sig…

In Poland, potato prices are much lower than in Western Europe, but exports should also increase significantly, according to experts of the Institute of Agricultural and Food Economics.

This year's potato harvest is estimated to reach approximately 8.3 million tonnes, i.e. about 31 percent more than in the previous year.

"Such a significant increase has led those involved in the sector to believe that potato prices will be low, but fortunately, the shortage of potatoes on Western European markets may create the opportunity to increase their exports, which would partly compensate for the surplus in the domestic market," stated experts of the Institute of Economics, Agriculture and Food Economics - National Research Institute (IERiGŻ).

In Poland, potato prices at origin are up to 60-75 percent lower than in Western Europe.

This year's potato harvest in Western Europe is lower than in 2015. According to the North-Western European Potato Growers Association (NEPG), the estimated harvest in five Member States (Germany, the Netherlands, Belgium, France and the United Kingdom) stands at 24.9 million tonnes, compared to 25.3 million tonnes last year.

The NEPG also reported much higher production costs for potatoes in 2016; a consequence of adverse weather conditions and the high intensity of potato blight.

"It forced increased spending on protection, which, with smaller harvests, had a negative impact on the profitability. The prices of potatoes in Western Europe are relatively high and because of the lower production this trend is expected to continue," cited the IERiGŻ.