Nothing is impossible this season in French fries, as is once again evident. Once again, Belgium takes the lead by setting the price for delivery potatoes at €5. Germany also made a correction. The Netherlands and France are falling less sharply.
It is once again PotatoNL that continues to steadfastly record at the top of what is feasible in the EU-4. Last week (on Tuesday) PotatoNL stuck to the bandwidth of €7,50 to €14 per 100 kilos for French fries potatoes. In practice, the €7,50 is particularly leading when it comes to potatoes for delivery. It also ensures that the DCA EU-4 Potato Index for our country came out at €11,75. A decrease of €0,50 compared to the week before.
Price level to 5 euros
France is already slightly below that with €7,00. The German Reka already lists Fontane at €5, but keeps Innovator at €14. As a result, the contribution from this country to the Index came to €8,88, which is a reduction of €1,30. As mentioned, Viaverda and Belgapom lowered the price for Fontane to €5. With a price of €5,83, Belgium remains the lowest-ranking destination within the EU-4.
Lowering the free potato prices has no effect at all on the market. Factories are not waiting for potatoes. Especially at the end of last year and the beginning of this year, the tons already contracted were used sparingly. That was – depending on the company – a deliberate strategy. First buy potatoes and only start the contracts later. Perhaps with the chance of a rising market price in the back of your mind. How different things could have turned out.
Market with corona traits
This total drop in demand does not bode well for the remaining weeks of the current processing season. A scenario like in 2017 is therefore again in the air (when the price dropped to €3,38), although the current picture is actually more like the corona season 2020/21, when there was also zero demand. PotatoNL even quoted €1,75 then.
In both cases, the market price shot up with the approach of summer. Weather influences had an impact on pricing. Despite the fact that it is now also relatively dry, there is no need to worry. There is acreage, planting was early and the condition of the crops can be called good to excellent on average. Several processors have therefore already filed the 2024/25 season. The required tons are more than sufficient and the next concern is rather an excessive volume of early potatoes, which will arrive at the end of July.
Contamination risk
The chance that the new market season will be contaminated by the current situation is very real. In order to turn the tide, serious damage to European cultivation is 'necessary' (read: a bone-dry summer and/or a soaking wet autumn), or a sudden return of demand for fries. For the contracting party - and that is the majority of the French fry potato growers - this is not yet a major concern. After all, excellent prices have been agreed. The pain then only lies in low-priced additional kilos. The faltering product sales, which increasingly look like it will continue for a long time, could have a significant impact on the contract price for the 2026 harvest year.