Belgian potato growers, especially those in the Westhoek, are facing major problems. Many of their potatoes are still in the ground and the chance that they will be harvested is decreasing. On the other hand, most farmers have concluded a contract with a delivery obligation.
Potato organization Belpotato calls potato growers should not wait to contact their buyers. This is also stated in the code of conduct that the organization has drawn up. It is common practice in Belgium to work with tonnage contracts. This means that a pre-agreed volume must be delivered. If that is not possible, the buyer will purchase the missing tonnes at the open market price. Growers are stuck with a drowned harvest on the one hand and high costs on the other.
Westhoek hit hard
Belpotato estimates that up to a quarter of all French fries potatoes in Belgium still need to be harvested. In Wallonia, more has clearly been done and between 10% and 15% are still in the field. In Flanders this is a maximum of 30%, but locally it increases further. The situation is by far the worst in the Westhoek region. In that area, at least half is still in the ground, according to a news site Felt through Guy Depraetere of ABS (General Farmers' Syndicate). It is only a drop on the total Belgian potato area and that of the EU-4, but it does affect the mood and it is bad news for the Belgian potato processors. Across the border in Nord-Pas-de-Calais, the situation is not much better and many potatoes are also lost. In the field it is comparable to the disaster year 1974.
Flemish farmers have been able to take advantage of broad weather insurance since 2020, but it is not yet very popular. There is still a catch, Belpotato reports. Some policies no longer reimburse damage that occurs after November 1, even though the most rain fell at that time. In Poperinge it is 270 millimeters between October 1 and November 12 and in Ypres 232 millimeters. But 245 millimeters also fell close to the Dutch border in Wortel. It is a lot drier around Brussels. The sum will be more than 100 millimeters in a month and a half.
Quality issues
In the meantime, growers are trying to save what they can, but that is not without struggle. The result is damaged fields, broken machines, spiraling costs and, moreover, product of questionable quality. This also applies to the Netherlands, where the situation is similar in many places. Many recently harvested potatoes begin to rot in storage. "It only takes one bad tipper and the whole lot will get wet," says an insider. The supply of these parties to factories is reportedly not too bad, but it is increasing now that conditions are deteriorating every day. At the end of last week, some clearing was done in many places.
Especially in the Westhoek, there are plots of land that are no longer worth digging up after being flooded for 24 hours. Belgian Prime Minister Jan Jambon announced on Friday, November 17, that the flood in this region will most likely be recognized as a disaster, allowing growers to claim damages. Belpotato calls for proper documentation of the damage suffered. Another option is to appeal to the crop damage committee. There is also a disaster fund available in Wallonia to report damage. There must be more than 30% damage to the potatoes.
Rising prices
In their own communication, Belpotato states that the situation (remarkably) has no impact on the potato price, because most potatoes are grown under contract. Practice proves otherwise. Belgapom quoted €20 per 100 kilos for Fontane and Challenger on Friday. A plus of €5 compared to the week before. The Belgian potato price has now doubled in three weeks. In France, the RNM quotation rose from €12 to €15. The German Reka price for Fontane also remained at €20 last week. It will be interesting what PotatoNL will come up with on Monday afternoon. The DCA PAT Index reports a transaction of €20 for Fontane delivered from the shed for today, Monday November 20, while a continued payment of €15 was made last week.
The market is therefore definitely moving. The longer-term perspective is also positive. On Wednesday, November 15, the potato futures market broke through the €30 barrier for the April contract. This happened again on Friday with a closing price of €30,60.