Now that the planting season is just around the corner, the French growers' organization UNPT is warning about what may come. It is expected that the acreage will increase significantly. It also hopes that mutual respect will be shown in the potato contracts.
With an area of 147.000 hectares of ware potatoes, France is the second largest potato producer in Europe in 2018; Germany is number 1. France also has 1 hectares of seed and starch potatoes.
Major expansion possible
France has the best credentials for any growth in potato production. Cultivation is increasing sharply, mainly in Northern France, especially because Belgian and Dutch potato processors are strengthening their grip on the area. They all see opportunities for expansion there and that is not surprising. Much of the production growth is attributable to Belgium.
France is currently the largest European transit port for potatoes. In 2017, the country produced 7,34 million tons of potatoes. In addition, it also imported 431.000 tons; of this volume, approximately 2 million tons were exported. That is more than neighboring country Germany, which exported 1,95 million tons and consumes considerably more.
Table potato market
Exports mainly revolve around table potatoes. This is the same as Germany. However, compared to 10 years ago, the country has significantly lost ground to Germany, which has shown a significant increase. In terms of seed potatoes, France is the number 2 export country, after the Netherlands. In terms of chip exports, the country ranks 5th (within Europe).
Between 2009 and 2012, the ware potato area fell by 30% to 116.500 hectares. In the following 6 years it grew again by more than 25%. If the area grows by 2019% in 3, it will once again be at the level of 10 years ago. An important side note is that the surface area now consists more and more of chip potato varieties, and therefore not of table potato varieties. Growth will be regulated by the availability of seed potatoes.
Hot spot for processors
The department 'Hauts-de-France', which lies next to Belgium, has already been earmarked for potato growth. This is the potato hotspot. The region was good for 2018 million tons of chip potatoes in 3,8, which is approximately 66% of the total production. In the neighboring Belgian province of Hainaut there are 4 factories, which process 33% of the production; these are Clarebout in Warneton, Mydibel in Mouscron, Lutosa in Leuze and Ecofrost in Péruwelz. Clarebout also has plans to build a new factory in Frameries.
Further to the west of Belgium there are more processing locations of Clarebout, Agristo and Aviko. The latter made a batch recent It is still known that it will start a potato pool for French fries potato growers. McCain also has 2 chip factories in Hauts-de-France.
Sugar beets and grain
Northern France still has plenty of growth opportunities for cultivation. However, this is highly dependent on sugar beet and grain cultivation. If beet growers decide to reduce or stop cultivation, this offers opportunities. Given the developments in the French sugar market, and the closures of several factories, then that is a plausible scenario. The area of grain is affected by the price and has increased slightly after last season.
Not everyone welcomes potato cultivation with open arms. In addition to the French companies, more and more Belgian and some Dutch potato growers are crossing the border. There are plenty of landowners who want to rent out the land for the greatly increased rents. There is a lot of dissatisfaction about that. Some local businesses call it illegal. Buying land is already close for foreigners impossible in France.
The area expansion mainly concerns contract potatoes. The weather determines the yield and therefore largely the market, but UNPT warns already for possible consequences. When everything grows and flourishes well, the outlook for the market is bleak. It advises growers not to grow on spec, but only when they have a buyer.
Contract conditions
The organization also calls on buyers to respect growers and not to present restrictive contracts; that is why general terms and conditions have been drawn up (Etats Généraux du Alimentation). UNPT has also drawn up a contract model itself. It is important that no delivery obligation is included. After the last season, several potato growers had to purchase additional product on the open market to meet their delivery obligations.
At the same time, growers' organization UNPT writes that contract growers should not oversupply the market with their excess kilos. Risky contract forms can cause this, it believes.