Inside: Potato Market

'Supermarkets are destroying French sector'

20 February 2018 - Niels van der Boom - 1 reaction

The French potato growers of growers' organization UNPT made a strong noise at their members' meeting. Supermarket chains sell their potatoes at rock bottom prices, which partly causes a negative market situation. The theme of the meeting was tapping into new export opportunities.

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UNPT (Union Nationale des Producteurs de Pommes de Terre) organized their annual membership meeting in Le Havre (Normandy) on February 13. The mood was negative due to the current market scenario. The area increased by more than 5% last year. After a top harvest, the total volume is 21% higher than in 2016. UNPT therefore warns about the acreage in 2018 and tries to limit new increases.

An increase in area in 2018 is undesirable

Question marks about acreage
French potato growers have the advantage that the quality is better than elsewhere in the EU-5. However, this makes no difference in prices. Chairman Alain Dequeker supports an earlier statement by the NEPG to properly calculate production costs and then determine the area.

The domestic market for table potatoes in particular is negative. Between the 2015/2016 and 2016/2017 seasons, potato consumption in France decreased by about 5%. This downward trend continues to manifest itself.

The association is disturbed by the fact that supermarket chains put potatoes on the market at dumping prices. At Intermarché you can buy 0,10 kilo of potatoes for €1. This makes the price of 10 kilos equal to 1 baguette. "Such sales prices are no longer an action, but a restructuring of the number of suppliers," says UNPT.

More exports
The French potato sector mainly has hope in exports. This increased by a volume of 2016% between the 2017/2017 and 2018/17 seasons. In the second half of 2017, the country exported more than 432.000 tons of potatoes. In record year 2013 this was 396.000 tons. The processing industry is also purchasing significantly more potatoes, although this is not accompanied by price increases.

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