The market for free-range potatoes is slowly but surely picking up. Meanwhile, contracts are also being bought out here and there because those potatoes aren't needed.
Belgapom is trading for the first time this week. For Fontane and Challenger, the first price of the season is set at €15. Unfortunately for growers, this price is per ton, not per 100 kilos. On the other hand, the first price is finally a start after weeks of deafening silence in the market.
Belgapom is starting the main harvest this week at the same level as the early potato trade ended. The last early potato price was on August 8th. Even then, the price remained stuck at €15 per tonne. Two weeks earlier, the season opened at €50 per tonne.
Two weeks ago, Reka-Rheinland was the first to reignite the potato market. It was nothing more than a pilot light, but it did signal that the potato market is starting to revive. PotatoNL later followed suit, listing Agria potatoes for export to Southern Europe for frying.
The German producers' association is stoking the fire this week. The price for Agria has increased by €2 to €7 per 100 kilos. Innovators remain unchanged at €4 per 100 kilos. The price increase is also reflected in rising minimum daily prices for Reka members. The minimum daily price for Agria has risen to €5 per 100 kilos, while the minimum price for Innovator is €3,50.
Buyout of contract potatoes
While the market for free-range potatoes is starting to pick up, there are also some problems with contract potatoes. Some factories are reportedly shutting down occasionally due to sales problems, and therefore those companies can't use all the contract potatoes.
Contracts are being bought out here and there. This way, the buyer tries to match supply to demand. The idea is that the grower can keep the potatoes for a few cents less than the contract price. By selling the potatoes elsewhere, the grower ultimately receives the same price as the contract price.
Postponing new factories
The postponement of construction plans for new French fry factories also indicates that the market is currently more difficult than anticipated. Agristo was about to begin construction of a large factory on the site of the former sugar factory of the French company Tereos. Those plans were shelved at the last minute for three years. Not before The first fries will be fried there in 2030.
Strike at Clarebout
Unions at Clarebout in Belgium have launched a major strike. They want employees to benefit from the company's sale to the American company Simplot. The unions say they intend to continue their action until they get their way. Clarebout has therefore canceled all deliveries for this weekend, and there will be no deliveries to the factories in Nieuwkerke, Warneton, and Dunkirk on Monday either.