The potato market has shown little dynamism in recent weeks, which does not really motivate the grower towards the 2022/2023 season. One thing is certain: a further decrease in the acreage would be very bad for processors in Western Europe, given the positive development of the worldwide sales of the end product.
The fact is, however, that growers have not made sufficient progress in terms of returns on cultivation in recent years. The corona pandemic partly plays an important role in the last two seasons, but also the further increase in the cost price. So the question remains whether the area increase desired by the processors will actually take place in 2022, and if so to what extent.
It is now clear that contract prices are going to a higher level. As far as the editors know, Aviko is the first to announce the contract prices with an average increase of €25 per tonne. It is not just the contract price that makes or breaks the balance for the grower. The construction surrounding it often plays a decisive role in the net end result per hectare. The factory captures part of the tons per hectare. No price has yet been set for the tons above that. For these so-called co-delivery kilos, the price is later determined by the buyer and grower. Although this is done on the basis of the 'day market', in 2022 you have to wonder what this market still entails.
Processors are willing, but what does the grower do?
Conclusion: the processors are pleased with how sales are progressing technically and want to further scale up in volume. However, the question is how growers will fare for the coming season(s). In Belgium in particular, the number of processors in a relatively small working area is large compared to the supply of raw materials for which people are jostling for each other. France is of course a nice backyard for the Belgians, but the French farmer is not known for being very flexible. In short, the panels in the market may shift from a supply to a demand-driven market before the start of the 2022/2023 season. This mainly requires a different attitude from customers, with 'trust' being a key word.