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Update: Here's What We Know About 2025 Contract Prices

28 November 2024 - Niels van der Boom - 31 comments

Many French fry producers are waiting for Christmas to come out with their contracts. They are waiting to see what happens and trying to gauge the mood in the meantime. This is what we now know about their commitment for the 2025-2026 season.

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Many French fry producers are waiting for Christmas to come out with their contracts. They are waiting to see what happens and trying to gauge the mood in the meantime. This is what we now know about their commitment for the 2025/26 season.

Traditionally, Clarebout, with factories in Belgium and France, is the first to take part in Interpom in Kortrijk. Despite the fact that the potato fair managed to reach a record number of 24.000 visitors, the expected contract prices failed to materialise, also at Clarebout. Several processors indicated that they had solved the puzzle, but that they would wait until after Christmas and the new year to issue the land-based contracts for the 2025 harvest.

Half a euro lower
In the meantime, growers are being sounded out. Prices of €17,50 per 100 kilos are being mentioned for Fontane delivery from the field. This is slightly less or equal to 2024 (week 42/43) compared to Clarebout, Agristo and Farm Frites.

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Whether Innovator will also have to make concessions is not known. The price level there this year was €19,75 (McCain) to €20 (Farm Frites and Clarebout).

To care
The fact that a price reduction may be implemented in the off-land segment does not come as a surprise to most growers. The French growers' organization UNPT took a stand last week by expressing its concerns express about a possible price drop. That did cause some surprise, as it turned out at Interpom. There is no reason to assume price pressure. Certainly in France, the processing capacity is growing and potatoes are needed.

The contract prices for storage potatoes will not be announced for the time being, but there are actually no signs to lower them. The whole crazy thing may be over with the demand for fries, but even with the current sales prices the margin is at a good level. In two years, processors have sometimes seen their prices rise by three quarters or more. Factories also benefit from the lower container costs. Since this summer, the price has fallen considerably and is at its lowest level in a year. Labor costs continue to rise, but many other items have not changed dramatically. Think of energy, packaging materials and frying oil.

Fewer potatoes grown off the land
The fact that a correction takes place in the off-land period is mainly due to the unpredictability of this product. Both the spring of 2023 and 2024 were difficult, which has an impact on the volume and quality and therefore the processing yield. It is difficult to anticipate this in advance. Many off-land growers have no or limited storage options, which creates a compelling supply when harvesting starts.

However, potatoes from the field are usually the cheapest for the factory. The difference between the last Belgapom quotation for the old harvest and the first new one was €47,50. Last year it was €50. Dutch processors have been switching to working with the old harvest for a long time. Growers are encouraged to invest in their storage and are better rewarded for this. The quality of this product, especially of the heavier clay soils, can be better controlled until well into August.

In the dark about seed potatoes
On average, growers and buyers in Europe are optimistic, as was evident during Interpom. At current contract prices, it is a more than cost-covering crop. Especially now that grain and sugar beets are at a different price level. Potato growers are keeping their options open regarding seed potato prices. If the contract price remains unchanged, this could affect the bottom line. One advantage is that availability and quality have improved considerably compared to 2023.

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