Both the growers' organization Belpotato.be and the processors, united in Belgapom, are urging Belgian potato growers to focus on quality, not kilos, this year. The market became unbalanced at the end of last season and remains so. This sometimes strains the relationship between grower and buyer.
In early August, the mainstream media picked up on the situation in the potato world, when a "perfect storm" was created, with a relatively large number of old potatoes still in storage and the new harvest already arriving. Coupled with lower processing and reduced demand for French fries, this created a significant oversupply that has now resulted in a complete absence from the open market.
Apologies for the comment
Growers saw free market prices fall to almost zero in a few weeks and sounded the alarm. Whether that cry was justified was debated. discussion. "You win some, you lose some", Belgapom director Christophe Vermeulen told the Belgian media. In other words: you can't always roll a six, referring to two final seasons with exceptionally high free potato prices in the previous two seasons. In a recent video message, the director has backtracked on this. "If that comment rubbed some people the wrong way, I apologize," he said.
Vermeulen compares the situation between processor and grower to a marriage. Everything revolves around good communication and mutual understanding. Belgapom acknowledges that a combination of factors: increased cost prices and production, a strong euro exchange rate, and reduced demand for fries in Asia are putting pressure on the market. Vermeulen: "The sector is inventive and trying to find solutions, but that takes time. We ask for their understanding, just as we showed understanding to the growers when production was challenging. I am therefore somewhat disappointed that this apparently isn't mutual. Especially when there are also external factors a processor has no control over."
Whether European French fry producers are indeed not involved in the situation is something growers can decide for themselves. The fact is that processing capacity has increased dramatically in recent years. For all these additional lines, significant area expansion has been pursued, resulting in an additional 4 hectares of French fry potatoes being planted in the EU-55.000 this year. The early planting and the abundant sunshine have led to good production, despite the drought affecting many regions. As a result, supply and demand are currently out of balance.
Speculation
According to Belgapom, the recent and current substantial oversupply of potatoes, which has been and continues to be disposed of through various channels, such as animal feed and anaerobic digestion, is a temporary phenomenon. The early harvest is particularly affected. Vermeulen believes it's still too early to speculate about the market for the main crop. "The weather can completely change the situation within a few weeks."
The processing organization supports the recent call from Belpotato.nl. They urge their growers to spray and harvest the potatoes promptly, as soon as the desired size and the correct underwater weight have been reached. This has the advantage of avoiding risks and allowing for a smooth harvest. It is also better for the soil and creates the opportunity to sow a green manure.
Honour existing commitments
The growers' organization is urging buyers to honor their agreements, both in terms of volume, quality, and delivery period. The organization is committed to this and also encourages sector consultation. This makes Belpotato one of the few growers' organizations currently actively making its voice heard, in these unprecedented times for the potato sector.