The price of a tonne of potatoes has plummeted to just €15, down from €150 last year.
Favourable weather conditions have resulted in a bountiful harvest, but industrial demand for potatoes has sharply declined.
“At this price, you can’t even cover the harvesting costs,” stated Pieter Van Oost, an expert with the agricultural organisation Boerenbond.
Currently, early potatoes are being harvested. These potatoes must be processed immediately as they cannot be stored.
About 60 to 70 percent of them are sold under pre-arranged contracts to potato processors, like frozen fry manufacturers. These contract prices were agreed upon at the end of last year when the industry was thriving and are sufficient to cover costs.
However, the remainder of the harvest enters the open market, where prices are dictated by supply and demand, leading to a price collapse.
“For one ton of potatoes, €15 is being paid, compared to €150 a year ago. This amount doesn’t even cover the harvesting expenses, let alone all other costs,” Van Oost explained.
While one hectare of potatoes brings in €600, the costs (including seed, fertilisation, pest control, and harvesting) can easily reach €6,000.
The plunge in the open market is straightforward: processors don’t require additional potatoes. Demand for frozen fries has been significantly lower over recent months compared to last year.
Boerenbond reports a reduced demand of 500,000 tons for pre-cooked potato products among Belgian, German, and Dutch processors. There is no clear explanation for this.
Processors cite competition from Asia, where potato cultivation in China and India is on the rise, and also the trade war under Trump. The strong euro might also be a factor, as many frozen fries are exported outside the EU.
Early potatoes make up only a small segment of the supply. Most potatoes are harvested from late September onwards and are known as storage potatoes, which can be kept until late spring. They too are expected to yield a plentiful harvest.
