INCREASING COSTS FOR PACKAGING MATERIAL Apart from food ingredients there are other components that form the cost price of the potato industry. One of these is packaging material. Albeit not a massive factor, it has still shown significant price increases during the last year. In March the price for regular brown, non-recycled, cardboard reached €740 per tonne, which went up to €880 in November. This price level decreased €40 in recent months, but is still relatively high. The same goes for recycled cardboard, which increased €100 in price over an eight month period to €630 per tonne. Prices have come down to €590 since. The packaging industry says that the EU deforestation law – whose introduction has been postponed until the end of this year – will cause further price peaks as the administrative burden for pulp, paper and cardboard industry will increase.
UNBALANCE IN PRICE LEVELS The worldwide potato snack industry, mainly that of deep fried French fries, is currently trying to find a new balance between production, cost, and demand. A short term reduction in volumes consumed is weighing ever more at the current price levels. Aside from high raw potato prices components such as sunflower oil, packaging material, natural gas and labour cost are each having an impact on the industry’s margins. The mid-term and long-term outlook from the potato industry is still looking bright, but the markets have to adjust on the short term and find the balance between production, price and demand.
Edwin Burgers is the Managing Director at ADM Investor Services B.V. and founder of DCA Market Intelligence in the Netherlands.
E:
edwin.burgers@admis.com DCA EU-4 Potato Index
10 20 30 40 50 60 70
0
While sunflower oil remains a staple in potato processing, the industry must navigate a complex landscape of supply disruptions and price swings.
EU-4 (Netherlands, Belgium, France, Germany) potato prices have shown a rapid increase since last year, mirroring the two seasons before, but that rise came to an abrupt halt late February.
Source: DCA Market Intelligence 21 | ADMISI - The Ghost In The Machine | Q1 Edition 2025
12-3-2024 12-4-2024 12-5-2024 12-6-2024 12-7-2024 12-8-2024 12-9-2024 12-10-2024 12-11-2024 12-12-2024 12-1-2025 12-2-2025
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44
