Demand for the food service sector and peeling market remains challenging. There are continued reports of high tare levels in some areas, possibly due to harvest conditions. As a result, more potatoes are destined for the bagging and peeling markets. This, coupled with the traditional post Christmas ‘lull’, is creating a very difficult market for peeling potatoes.
Across Europe, market conditions in the processing sector are still very much contract-based but all the factories are now back working following the break. The weakening exchange rate of the Euro to the USD is a minor source of comfort. Rejections remain high and there is still pressure on the market from growers looking to clear poorer quality stores.
