Farm Frites substantially increases contract price

The demand for fries is good and processors have invested heavily in production capacity in recent years. Potatoes are needed to keep the smoothly running train rolling. The Belgian processors set the tone by implementing a significant increase in contracts for the 2023 harvest. Farm Frites is joining this movement and is increasing prices across the board by approximately 40%.

Potato purchasing manager Walter van Stee is cautious about the specific prices for varieties and delivery periods, but he does want to provide a glimpse of the veil. For Fontane delivery week 17, Farm Frites offers €2023 per 24,65 kilos excluding compensation for mechanical cooling in the contract for the 100 season. For Innovator the price is €26,65 per 100 kilos, also excluding compensation for mechanical cooling. Growers can contract up to 40 tons per hectare. "We want to give extra reward to growers who have invested in mechanical cooling and can therefore store the potatoes for a long time. That is why we have a relatively high storage fee that can amount to €18 per ton," says Van Stee. Growers can contract up to 40 tons of potatoes per hectare.

Change
The potato market has changed considerably according to Van Stee. "Potato prices, but also French fries prices, have risen sharply in recent times, partly due to disruptions in the market after corona and the energy crisis. Growers are also dealing with this and have seen their cost price rise sharply. €30 was a magical upper limit for a long time, but that limit could now be raised further. Growers also see this and so you have to respond to this with your contracts. We want to offer growers a good reward for their product and - not unimportant - the chip market also allows this. Growers need us and we need growers. With the contract prices this year, I think we are making a proposal for which potatoes can be grown well."