The Northwest European countries, Belgium, Germany, France & the Netherlands, are expected to face a lower outlook for the Market year 2020-21.
North-western European potato growers (NEPG) states that the production has increased from 26.9 million tons to 27.9 million tons since last year.
But the crops might have limited channels to supply the product.
The main reason why the market is off balance is due to the less global demand from the foodservice market for the potato products.
Even though the demand from the Retail market has increased, but it is not likely to cover the demand from Hotel, Restaurants & catering industry as it has not increased that much as it was before the pandemic.
Processed potatoes hold a large area of operation within the EU. Two-thirds of the potato consumed daily is processed.
Even the prices have dropped off; the demand for processed ones have dropped significantly across northwest Europe.
NEPG reported that the prices are expected to remain low until the end of the year and could even drop further.
European potato growers are facing competition from US & Canadian suppliers too.
Belgium & Netherlands had a combined 40% share in the UK’s import for HS: 0701 potatoes worried that the UK may start sourcing it from the US & Canada for processing.
The potato production in the region might be replaced in the future for more profitable crops.
NEPG also has estimated that the overall consumption of potato yields is on a five year low, which might recover if the demand for processed potatoes increases to the levels as that before the Covid-19 crisis.