Inflation is currently affecting consumer spending. However, in Dutch stores, that is mostly in a positive sense, says Michiel Meijering, potato wholesaler Landjuweel's commercial manager. "You could say potato sales are flourishing in these times of crisis," he begins.
"Buying is very clearly quite promotion-driven. Retailers use those to keep shoppers coming. We're actually selling more now in week 34's promotions than in the last three years. Though, the last two years COVID-19 measures mean they aren't good references. Our overall volume is still 13% below 2021, but, at the beginning of the year, that was still 20%, so we're getting closer and closer."
"The regular assortment - outside of promotions - is selling fairly well too. Consumers are resuming their regular pattern now that the summer vacation is over. Early in the year, this regular segment was under tremendous pressure, but it's now also picking up. I was concerned that the pressure from promotions would affect regular purchases, but it's not too bad," Michiel says.
"In times of financial trouble, people generally return to 'normal', and eating potatoes apparently fits well with that. During the first pandemic lockdowns, for example, shoppers more often bought the 5kg bags. That's happening again. Specialty sales, on the other hand, are a little down. We hear from others in Germany and France, too, that the organic segment sales are under great market pressure. But, we manage to maintain our organic share well."
"Store consumer prices are quite high, as are our purchasing prices. Profit-wise, we're, thus, slightly below last year, but most growers are well-satisfied. They have relatively good yields and good prices. The hot summer and unavailability of water caused great market speculation. Low European harvests have boosted Dutch exports, keeping the ware potato market high," Michiel continues.
"Overall, this season is brimming with prospects. Prices will, hopefully, remain stable. We really can't complain about the yields; they're fantastic. The estimates for the rest of the Netherlands are pretty good too. But the total European harvest is below that of 2018. So this year, supply-wise, there´s plenty of room for promotions because the warehouses are well stocked. Along with inflation, it's evident that there will be high promotional pressure in the first months of 2023."
"Still, how the potatoes will fare in storage is uncertain. They're already quite prone to sprouting, and storage is very expensive this year. With energy prices as they are, you can easily add €0.05/kg to long storage costs. And the potatoes have unusually high underwater weight. Yet, we should manage to sell year-round Dutch potatoes again this season," Michiel concludes.
For more information:
Michiel Meijering
Landjuweel B.V.
Tel: +31 (0) 595 454 200
Email: [email protected]
Website:www.landjuweel.nl