The potato acreage should fall sharply next season, according to the call from North-Western European Potato Growers (NEPG). Due to the global corona crisis, the demand for processed potato products has fallen considerably, the demand for raw materials for processing is now estimated at 85% of pre-pandemic.
FAKE estimates the potato harvest in the 5 largest potato producing countries this season at 27,9 million tons, which is 4,5% more than last year (+1 million tons). The harvest is later than normal. Particularly in the wet areas in the west of Belgium and Great Britain, a lot of clearing still needs to be done. The demand for processed potato products has fallen sharply due to the corona crisis. That is why the NEPG is now calling on growers in Northwest Europe to plant 15% less next spring.
Over the past 5 years, the area of consumption potatoes in NEPG countries has increased by 7,7%. In France and Germany this increase even amounts to 14% and 10% respectively. According to NEPG, this growth is disproportionate to the slow growth in demand for raw materials by the processing industries. Now that many countries are in a second lockdown, the grower organization does not expect many changes in the coming season. They currently see a reduction in the area as the only solution.
Fewer contracts in prospect
Another factor is that many European and North American potato processors have large stocks in their cold stores. This means they need less raw materials for a longer period of time. NEPG expects that they will have to reduce the contracts for next year and that there will be little interest in free potatoes. On the other hand, given the costs of cultivation and storage, no reduction in contract prices is expected. Ferdi Buffen from potato trading house Weuthen predicted earlier even though 'in the future the boys will be separated from the girls again'.