The French potato growers' organization UNPT warns potato processors not to lower contract prices for the 2025-2026 season. It points to rising costs of French fry potato cultivation, which, according to the organization, will force prices to rise again. That would be for the fourth year in a row.
The last potatoes have barely been put behind the shelves and there is already discussion and speculation about the contract prices for the coming harvest year. The potato trade fair Interpom will start on Sunday 24 November in Kortrijk, Belgium. Traditionally the moment for the first Belgian processors to announce their contract price for the ex-field period. This gives us an indication of the sentiment for the 2025/26 season among buyers.
2 to 3 percent increase necessary
UNPT (l'Union Nationales des Producteurs de Pommes de Terre) is already taking a position by issuing a press release. In it, UNPT states that contract prices must increase by an average of 2% to 3% next season to cover the costs for growers. According to new figures from the growers' organization, these will increase again next year.
"Since 2019, the cost price of potato cultivation has increased and is now four times higher than that of wheat," says UNPT. "Half of these costs come from mechanization and seed potatoes." The organization sees contracts as a good instrument to guarantee minimum prices, but they must be tailored to practice and move with the trend of rising production costs.
Healthy margin
The lack of more and more crop protection products and climate extremes cause yields and quality to fluctuate more and more. The contract prices – for both table and French fry and starch potatoes – should reflect this, according to the organization. With a healthy margin for the farmer, they can invest in mechanization and product storage, among other things, but also move along with environmental objectives such as reducing CO2 emissions.
UNPT is calling on all buyers in the potato chain to include the higher cultivation costs in their contracts for the coming season. Processors will probably keep their cards close to their chest for another eight weeks or so when it comes to prices for the main harvest of 2025. Insiders also find it difficult to estimate which way things will go. A price increase for the fourth year in a row is exceptional, but not impossible.
No alternatives
On the other hand, processors usually have enough potatoes this season. With the additional factories and production lines, they also have no need for a shrinking area in 2025. With a moderate mood for crops such as wheat and beets, arable farmers do not have many alternatives and the (French fry) potato cultivation remains an attractive one. Factories know that.
Over the past three years, contract prices have increased dramatically, averaging 22% for Fontane and 20,5% for Innovator. It should be noted that this past season was ‘only’ 6,5% to 7%. In that light, a 2% to 3% increase is not an excessive demand. It amounts to €0,50 to €0,80 per 100 kilos, when you take the Dutch and Belgian contract prices as a reference.