Is potato cultivation shifting to the east?

The consumption of potato products in Asia and the Middle East is increasing. Parallel to this is the processing capacity of industry in Northwestern Europe. Where do the necessary potatoes come from? That is what Jakob Brand, International Business Manager Food & Agri at Rabobank, wonders.

"The Dutch construction plan consists for 50% of potatoes and sugar beet. That is due to its capacity," says Jakob Brand. "Deterioration of the soil structure is a real danger. The Belgian construction plan is also rapidly moving towards a schedule that includes a maximum of root crops. In northern France, potato cultivation is also gaining a foothold."

Space in German potato building plan
"Like the arable farming plan in northern France, the German cropping plan consists for 90% of crops that are harvested with the combine. This offers opportunities to include potatoes in the rotation," Brand thinks.

"Looking at the current land and rent prices, the cultivation of grain and rapeseed is still profitable in Germany. However, prices at our eastern neighbors are under pressure. In Germany, the price for land doubled on average between 2017 and 2016. Also the prospects for grain and rapeseed are moderate, profit margins are under pressure and that offers opportunities for potatoes."

Don't grow but rent out
"Growing and storing potatoes requires a lot of capital. In addition, expertise is needed for cultivation and sales must be in order. You can therefore wonder whether German arable farmers, where potato cultivation is possible, will start with this themselves. Perhaps are they going to grow for third parties or will they rent out the land," suggests the Rabobank man. "The same situation, albeit to a lesser extent, also applies to the countries east and south-east of Germany."

This opinion is written by Jakob Brand, International Business Manager Food & Agri at Rabobank.

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