Aviko Potato Crop update October 2011

Planted during April's favourable conditions, the crop got off to a good start, however, drought in May and early June caused significant delays. Rain throughout the second half of June helped the crop, leading to decreasing potato prices as well as to large and long tubers. The size of the tubers has led to a lower tuber count per plant with a higher average yield per acre.

Supplies in Europe are growing. The potato crop in France increased by 4% and also in the UK, more potatoes were grown. The large tubers have led to a higher average yield per acre in Europe, Russia and Ukraine. Increasing demand from Central Europe and Russia impacted last year's availability and prices.

For now, the 2011 crop from Western and Central Europe seems sufficient to fully supple European demand. However - overseas demand may impact on that. The global market structure is changing rapidly, due to growing population and the fact that potatoes are a staple ingredient in so many diets.

The large volumes of the 2011 crop need to be harvested in the short term. Current export demand for fresh potatoes is low, which gives new markets the opportunity to open up to new fresh or frozen processed potato products.

In short, the 2011 crop is large in volume with sizable tubers and a high average yield per acre.