The potato market remains gripped for now by lower demand, expensive stocks, and a large harvest. Although the market is largely based on contracts, the smaller open market is actually driving the momentum. Growers use contracts to reduce risks and cover costs, while they grow open potatoes to make money.
With current prices, that last point is completely impossible. The biggest problem right now, however, is finding a buyer for your product. Only in a few cases will the buyer grant a grower a (meager) bonus; there simply doesn't seem to be any more room at the moment. A good relationship with the buyer occasionally pays off in this way. That relationship could very well be the key to new contracts in 2026.
In France, there are significant stockpiles of finished products, reports the French market news service RNM, part of the government agency FranceAgriMer. Processors are currently primarily working to catch up on backlogs in processing the contracted quantities.
Delivery potatoes
The factories therefore only purchase contract potatoes, with some potatoes supplied in exceptional cases. These potatoes are sold for €1,50 per 100 kilos, just like in the Netherlands. In addition, limited quantities are supplied to peeling companies for €1,50 to €2,50 per 100 kilos.
There are quite strict controls in place. Due to the drought during the harvest period, there are relatively many problems with blue potatoes. This sometimes leads to rejections. These potatoes are sold as feed or sent to anaerobic digestion.
However, the French market service is too inactive in the free market for potatoes to compile a quotation. For example, no quotation has been established for French fry potatoes for a long time. This season, RNM only lists one quotation, which was €3 per 100 kilos on October 7th. The last quotation for Fontane dates back to June of this year.
Expensive inventory is in the way
Incidentally, France isn't the only country where inventory is hindering smoother market flows. In the Netherlands, Belgium, and Germany, old stocks are also a major obstacle. Due to a lack of demand, products remain unsold. These stockpiles were built up when processors were still expecting continued growth. Now that sales are sluggish, this is only exacerbating the market's problem.
Factories are operating at a reduced capacity to prevent inventory from building up further. Production breaks are being extended to avoid overproducing finished products. This makes the factories less efficient than they would have been under better conditions. Moreover, processors are unable to benefit from cheap raw materials now that the harvest is so large due to massive acreage expansion.
For the fourth consecutive week, the Belgian Belgapom is now quoting €1,50 per 100 kilos for the Fontane and Challenger varieties. The potato organizations Viaverda and Fiwap are quoting between €0,50 and €1,50 per 100 kilos. Even if any potatoes are being traded freely, they are surplus to requirements. Moreover, there is little activity on the export front, as potential buyers have large harvests of their own.
Band-aid for the bleeding
The only bright spot is that PotatoNL started offering its first Fontane quotations this week. However, this is nothing more than a temporary solution, as prices for this variety are no better here than in neighboring countries. PotatoNL is starting Fontane at €1,50 per 100 kilos.
This price is also paid for potatoes supplied along with the potatoes, insofar as they are purchased. Processors say they can't use all those potatoes. No extra truck is being sent out for leftovers. Buyers would rather see the grower sell the potatoes elsewhere. This creates some leeway to collect other contract potatoes and thus limit the backlog. In short, the market remains tough.
For the time being, there's no immediate change in this situation. Free-range potatoes with no market or storage are being stored in makeshift storage. A roof, tarpaulin, and ventilation aren't suitable for long-term storage. As long as there's no market movement or significant frost, these potatoes will remain in the market.