The NEPG (North-Western European Potato Growers) expects the potato area in the Netherlands, Belgium, Germany and France to grow by around 2025% in 5, or an increase of around 25.000 hectares. The final figures are yet to come, but the preliminary estimate points to a clear expansion, especially in the segment for French fry production.
The growth is due to a combination of factors: the lack of profitable alternative crops, favourable contract prices and optimism about the processing industry. Several new or planned chip factories in the EU-4 countries have given growers the idea that demand will continue to rise structurally.
However, the NEPG warns against overestimating the long-term potential. Higher production costs, stricter environmental regulations and increasing competition on the world market – especially from China, India and Egypt – are putting pressure on the sector. In addition, the climate makes European cultivation more risky, with increasing drought, disease pressure and regulations on water use and crop protection.
The expansion of the area seems logical in the short term, but also entails greater financial risks. The NEPG calls on growers to carefully consider area growth and points out the need for cooperation within the chain to maintain Europe's competitive position. What seems like a growth market on paper, turns out to be complex and full of uncertainties in practice. According to the NEPG, this is also evident from the current price formation with quotations that have fallen sharply since February.