Will Potato Prices Rise in 2020? Planting Prospect Analysis

Potatoes have always been a common food in many people's daily lives, but since 2017, the potato market has not been good, with prices steadily declining. So will potato prices rise in 2020? How are the planting prospects?

1. Will potato prices rise in 2020?

Although potatoes are very common in daily life and their price is not high, their yield is very high and they store very well. In 2019, less than 20% of the potato supply was absorbed, which led to relatively poor potato sales in 2019.

Affected by the weather, in 2019 there were relatively few good-quality potatoes in the production-area inventory, and relatively speaking, average-quality potatoes had no competitive advantage, causing potato prices to fall further. Although potato prices were falling, at about 1.2 yuan per kg, they were still considered high-priced compared with other low-priced vegetables.

Because potato sales in 2019 were relatively lower than in previous years and inventory was relatively large, this will affect potato prices in 2020. After the new crop of potatoes comes out in 2020, prices may decline. However, this will also need to be determined according to the actual market situation.

2. How are the prospects for planting potatoes in 2020?

Potatoes are a main processing material for flour-based foods and are praised as “humanity's second bread.” Potatoes have a high survival rate and low planting costs, so in many poor areas, potatoes are a major food crop. China has exported large quantities of potatoes to poor countries, and subsidies for planting potatoes have also remained relatively high. Therefore, the prospects for planting potatoes are still quite good.

Moreover, in the “Guiding Opinions on Promoting the Development of the Potato Industry” issued by the Ministry of Agriculture, it was proposed to make potatoes a staple grain, expand the planting area, and advance industrial development. By 2020, the potato planting area will be expanded to more than 100 million mu, the proportion of varieties suitable for staple-food processing will reach 30%, and staple-food consumption will account for 30% of total potato consumption.

Although potato prices are not very high, the prospects for planting potatoes are still quite good. In addition to being sold as an agricultural product, potatoes can also be processed into many kinds of secondary foods.