Several potato processors indicate that they have little to no effort this season to motivate growers to conclude a fixed price contract. This means that contracting has taken place at a record pace, both in the Netherlands and Belgium. The Belgian processor Clarebout even chooses to collectively reduce the volume, after great interest from growers.
At the end of February, Clarebout Potatoes, the largest potato processor in Belgium, sent a message to its growers. The company claims to have had an 'overwhelming' supply of potatoes for the 2025/26 season. As a result, the company is forced to reduce the contract volume by 10% with all growers.
According to purchasing director Yves Capoen, this is not so unusual. "We always work with a contract request or proposal before the final contract is drawn up," he explains. "Growers can make their wishes known, and we do our best to accommodate them. It is not the first time that Clarebout has chosen to lower the final volume."
Dutch people continue to expand
A tour of various potato processors in the Netherlands and Belgium shows that this step can be called remarkable. It is certainly not followed by many fellow processors. It is noted that contracting went smoothly this year. At the end of February, almost all potatoes were already 'in the books'. Most processors were looking for more volume prior to the season, due to production expansions. It was no problem to get that volume from growers. There is also sufficient seed potatoes available this season.
Some parties are sometimes missing out this year. This is particularly the case with potato traders or grower-traders. Part of the volume that they normally make available is superfluous this season. Processors have something to choose from again due to the situation described. They are trying to optimize and are looking closely at cultivation location, varieties, choice of soil and more. That luxury was not available in the last hectic years. There is no need for large free volumes at the moment.
Major expansion
According to Capoen, the reason why cuts are being made in Belgium – at least by Clarebout – is directly related to an enormous potential expansion of the area. "In Northern France, this was heading for 15% to 20% and that is not in line with the processing capacity and sales of the end product. We notice that existing growers want to expand. Many new growers are also registering." What does not help is the sluggish sales of fries. Belgium suffered the biggest blow within the EU-2024 in November 4. Almost 4% less product was sold, on top of the correction that was already implemented in October.
Belgian price drops
The sales of the Netherlands also declined. At 3,4%, the decline is slightly smaller than in the southern neighbours. The difference in volume is greater. Belgium missed almost 8.700 tonnes, compared to 5.200 tonnes from the Netherlands. After many months of stable growth, French exports also dipped in November, by almost 12% (7.400 tonnes). Germany was the only country to see its export volume increase by 10% in November.
The price level shows a greater differentiation in November. The Belgian price was the only one to fall, by €38 to €1.230 per ton of fries. The price for the other countries actually rose, after having gradually fallen last autumn.
Both inside and outside Europe, fewer fries are sold by factories. Strong competition from North and South America, but also Asia, is also forcing more potato products onto the European market. Within the EU, the volume sold fell by more than 7%. Outside the EU, this is no less than 17%. EU countries also sold less product in December, although the decline is slightly less than in November.
More land
It is not unusual for contracts to run smoothly. This was also the case in 2023, for example, when the industries were also early with their prices and growers were willing after significant price increases. This year, it is mainly a lack of alternatives that drives growers towards potatoes. In the Netherlands, this means that there is more supply of rental land for potato cultivation. The number of dairy farmers who are retiring is significant and organic agricultural land is returning to conventional agriculture. There are also retiring livestock farmers who are trying their luck in potato cultivation themselves.
Capoen emphasizes that the new growing season has yet to begin. "A lot can still happen during and after planting and during the growing season." Clarebout also finds it crucial that not all potatoes are contracted. "It is important that not all tons are contracted, but that a portion of potatoes remain for the free market. We only work with ton contracts and growers attach great value to the fact that a portion remains free."