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Farm Frites keeps contract prices stable

13 January 2025 - Niels van der Boom - 62 comments

Farm Frites is the first Dutch potato processor to go out with its contracts for the 2025 growing year. Compared to last season, prices are virtually unchanged. According to the processor, this offers sufficient prospects for growers.

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Only in the off-land segment for Fontane is Farm Frites implementing a small reduction. The contract price starts at €175 per tonne, which is €5 less than last year. Innovator remains at €200 per tonne in the off-land period the same as last season. In week 17 (delivery April) Fontane will arrive on €274,50 and Innovator at €297. By the end of June that will be €293 and €316.

Seed potato shortage
For seed potatoes, the prices also remain the same as last year. According to the company, the total seed potato supply has improved, but there is a shortage of high-quality varieties, the company indicates. Farm Frites is aiming for more potatoes of varieties such as Innovator and Donata, with which it serves customers in the fast food segment.

According to their own statements, potato growers are positive about the prospects for this year. Most companies have made money in the last two years, despite difficult growing seasons. Compared to other arable crops, the potato also offers a chance of profitable cultivation in 2025. Farm Frites then assumes a further expansion of the area in the EU-4. The required processing capacity is not an obstacle to this.

Sales uncertain
The processor is moderately positive about the sales of the end product. Fast food chains are selling fewer portions of fries and less product is being sold across the board, the company notes. Factories have been able to pass on higher potato prices in the prices of the end product in the last two years, but there is a limit to this. Especially when consumption falls. At the same time, the restaurants are still full and the prices are at a sufficiently high level.

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