The 2026/27 season revolves around finding the balance between supply and demand, according to potato processor Aviko. To become competitive again on cost price, a significant price adjustment is necessary. Aviko is working with growers to determine which volumes can be secured. On the other hand, there are several market-related contract types and pool contracts. Seed potatoes will also become considerably cheaper.
The European potato sector is currently severely imbalanced due to sharply rising total production costs, combined with a record yield of 30 million tons of potatoes in Europe. Aviko believes drastic measures are needed to restore the sector's equilibrium. "If we want to remain competitive in the global sale of our end products, costs must be reduced everywhere, especially within the industry itself," Aviko emphasizes. This has consequences, among other things, for the fixed-price contracts the company is offering for the 2026 growing season.
Fontane and Innovator
The Fontane harvest season starts at €13,00 per 100 kilos, a reduction of €4,50 or 25%. In week 17, the contract price is €21,55, and in week 26, it is €24,08. The absolute decrease compared to last season is over €5 (19%). Aviko pays €3 more for Innovator than for Fontane over the entire contract period. The harvest price is €16,00, compared to €19,50 last year. In week 17, the price is €24,55, and in week 26, it is €27,08. The decrease compared to last year for this variety is approximately €4, which represents 14%.
The prices listed exclude premiums and surcharges and VAT. The storage fee for mechanical cooling remains unchanged. Weeks 1 through 28 are a crucial period for Aviko, from a quality perspective. Growers with storage facilities also want to utilize this period, and the company is trying to accommodate them with its pricing. In addition to Innovator, the company is also focusing on the AAA variety group, which also includes Agria and Lugano. Aviko is the only major processor to use the latter variety, for which it collaborates closely with Agrico. According to the processor, Lugano can compete with Innovator and is very suitable for long fries, which it needs in the foodservice and retail segments. Victoria cultivation will be phased out in 2026 and will cease in 2027.
Falling seed potato prices
Seed potato prices will drop by an average of €510 per hectare, equivalent to €10 per tonne. This should ease the pain of the lower contract price somewhat. Those used to using ATR seed potatoes can continue to do so.
New contract form
Aviko is expanding its contract options. In addition to the French fry guarantee contract (click contract), there's the pool participation contract as a new option for growers. This contract type, which is subject to several specific conditions, was introduced on a limited basis last year but is now being rolled out more widely. The potatoes under this contract are not part of the pool, but are linked to the pool result and therefore the open market. The difference is that this sales method does have a price floor. This contract type is only offered for the Innovator, Lugano, and Agria varieties. In addition to the contracts, growers can participate in the field-sales pool or pool with or without pre-sales.
The potato processor clearly believes that the potato acreage in Europe needs to shrink. Aviko will not implement a general reduction in tons per hectare. The company is reviewing the agreements with each grower. "We want to build long-term relationships with our growers," it says. Before concluding a contract, it considers previous years, delivery reliability, and loyalty, as well as quality and proximity to the factory. The quality aspect is particularly important, as Aviko focuses on the high-quality potato products it sells under its own label.
Double dynamics
Aviko director Dick Zelhorst speaks of a dual dynamic currently gripping the potato sector. "On the one hand, there's the structural decline in overseas fries sales, primarily due to competition from other countries. Five years ago, Europe and North America held 80% of the fries market. Today, things are very different, with newcomers like China, India, and Egypt. Consumption growth is also stagnating. There is still growth, but it's less substantial than previously thought." On the other hand, there's what Zelhorst calls the 'harvest dynamic.' "2025 was a perfect storm"Enormous area expansion in Europe, followed by excellent yields, almost everywhere in the world."
Aviko is confident that by critically examining the total cost of the supply chain – from grower to customer – Europe can become competitive again in the global market. A market for free-range potatoes will also continue to exist. "In Europe, where yields are volatile, you can't contract 100% of your needs. So there will always be a daily market where you can buy or sell potatoes. The Aviko pool must take advantage of this, now that the futures market no longer functions. A good alternative, in our view, is the pool participation contract." For potatoes that Aviko buys itself at the daily price, it uses its own billing system. The daily price for this is determined in consultation with the ATC (Potato Growers Committee).
Area decrease
Aviko also operates in France and uses the same contract prices there as in the Netherlands. The company has noted, however, that growers there are more inclined to reduce their production, especially when significant investments haven't yet been made in cultivation.
The potato flake market is also facing a global market downturn. Aviko, through Rixona, is also affected, with contract prices also falling for the 2026 growing year.