Potato acreage has stabilised in recent years – last year, they were grown on more than 12,500 hectares. There has been a sufficient supply of local potatoes on the market so far. Growers say that supplies are now running low, and the main concern is estimating how rising costs will affect production costs in the new season, Latvian Radio reported on 5th April.
“Potatoes are very inconvenient in this regard, because they are a very energy-intensive crop. Right now, potato growers will spend a lot of money just to plant them,” said Aiga Kraukle, chair of the board of the Potato Growers and Processors Association.
Although costs are rising, there are no signs that farmers might stop planting this crop.
“Those in this business don’t really have a choice. They’ve already set aside the seed, and where else would they put it? At the same time, it’s a chance for them to earn money in the fall. If you compare, potatoes demand a lot but also give a lot,” said Kraukle.
Could this crop be planted more in small gardens? Kraukle thinks that, most likely, no.
“There probably wouldn’t be a huge boom. We’re seeing how it is this year due to Europe’s massive harvests. They had both increased acreage and excellent conditions for a perfect harvest, resulting in massive overproduction. Cheap potatoes flooded the market. And now he [the buyer] thinks – if I can buy them for 19 cents at Lidl or Maxima, why should I bother?” said Kraukle.
Currently, certified seed potatoes are available, and high demand has not yet begun. However, due to rising costs, farmers might plant uncertified seed potatoes instead of certified ones.
The association’s estimates show that the price of seed potatoes has risen by about 5% this year compared to last year.
However, it should also be noted that potato consumption has been declining in recent years. The head of the Potato Growers and Processors Association noted that the volume supplied to processing companies is increasing:
“Processing for potato crisps is being ramped up, but a large portion of that came from organic fields,” explained Kraukle.
This trend is likely to continue.
“Two productions – starch and potato crisp. The crisp production is slowly recovering after Covid, but the starch production has ambitious plans and is expecting a sharper increase,” said experienced potato grower Ilgvars Krūmiņš.
However, the price for processing potatoes has already been set in advance.
“When contracts are signed, it’s already set. No one knew the war would start, and no one knows when it will end or how it will ultimately affect prices. Whether this is just fuel traders speculating over a few months or if it will have a lasting effect, we might see by Midsummer,” said Krūmiņš.
Krūmiņš predicts that the new season will be challenging and that it is impossible to make any predictions at this time. The current situation can be described in one word: uncertainty.
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