A price increase of 30 to 40 euros per ton is the minimum required to keep it interesting for French potato growers to grow potatoes. This is underlined by the growers' organization UNPT. New legislation can actually help to achieve this increase from next year, on a structural basis.
French arable farmers are unsure about potato cultivation for 2022. It is also surprising that sales of potato products such as fries are apparently left unaffected by the corona pandemic. The processing and export figures are good. Factories are expanding in capacity and area in their own country. For example, Aviko, who started his first lines in Poperinge this autumn. Northern France must supply the majority of the potatoes that Aviko, but also Agristo and Clarebout, among others, need.
Alternatives
Energy, diesel, fertilizer and more. Everything has risen sharply in price, according to the opinion UNPT. These additional costs have no choice but to be included in the cost price. In addition, rapeseed and wheat prices are still at an above-average high level. An alternative is therefore available for those who want to cut back. The price of sugar beet has also improved slightly and the prospects for 2022 are also good.
French growers have now also been presented with the first potato contracts. UNPT does not mention prices, but does say that the price increases are insufficient to cover the higher cost price and still have some left over from cultivation. On the one hand, this comment is remarkable, because contract prices in France are usually higher than we are used to in the Netherlands and Belgium. Factories are actively looking for acreage and are willing to pay for it. In short: the party with the fattest wallet gets the most potatoes on paper.
In line with the previous message of the NEPG, the French are facing a minimum price increase of €30 to €40 per tonne. In addition, the method of pricing must also be changed, the organization writes. Contracts in the future must index costs and actively respond to this to protect growers from the ever-increasing risks.
New law protects growers
The potato organization feels strengthened by the French government. The so-called EGAlim-2018 has been in use in the country since 2 legislation in preparation. In short, the law stipulates that the farmer's income is protected. The law was already set up in 2018, but was only adopted and integrated in mid-October of this year. EGAlim-2 has four important pillars:
North America also has such legislation that potato growers, among others, can use in their contract price negotiations. This makes it impossible to offer so-called choke contracts. It is not a solution, but it is a stick behind the door. The French growers' organization feels confident that potato cultivation can and should go along with the recommended price increases.