Potato processors in Belgium are on course to set another record. They started the first quarter of the new processing season very strongly. Never before had so many frozen fries been produced. Can the sector counter a raw material shortage for the second year in a row?
The fairytale of the Belgian potato industry, which shows strong growth almost year after year, is still not over when we look at the latest data. In 2021, the industry in our southern neighbors processed 5,6 million tons of potatoes. Last year that was 6,2 million tons. In September, Christophe Vermeulen, CEO of Belgapom, already expressed the expectation that 2023 will amount to almost 7 million tons.
8% more fries production
The Belgians are on a collision course to actually achieve this figure. The first financial quarter from July to September 2023 has started very strongly. According to figures from Statbel, 985.000 tons of potato products were produced during these three months. Most of them frozen fries. Good for no less than 864.000 tons. That is an increase of 8% compared to the same period last year.
The production of chips and chilled potato products actually declined during this period, by 12.000 tons. The production of potato flour and flakes has remained stable in the summer.
More potatoes, but enough?
Last year, the Belgian industry faced a major shortage of raw materials, when 3,97 million tons of potatoes were harvested. More potatoes than ever had to be imported from France and the Netherlands. For this year, the country was heading for 4,64 million tons of potatoes. However, the harvest is still not over and the question is whether the last hectares can all be harvested. This has improved availability, but processors are less flexible than previously thought. There is also quality to take into account. This cannot always be said to be good, especially for late-harvested crops.
What the Belgian factories have succeeded in selling their products on the world market at very good prices, despite very high food inflation. With the arrival of the new harvest, they have also been able to benefit from sharply decreased potato prices for the tons that had not yet been contracted. The fries price per ton remains at a stable high level, which means that the margins made can only be enormous. Even with a potato price that doubled in four weeks. Belgapom has now been trading at €20 per 100 kilos for four weeks.