Before New Year's, many arable farmers assured them they would immediately sign the potato contract, despite a price drop of around 20%, or €4 per 100 kilos. Now that the details of the contracts are slowly but surely coming out, some hesitation is starting to emerge. Some are openly complaining that the new contract proposals are giving them a stomach ache.
Earlier this week, the POC once again urged potato growers not to blindly sign the contract proposals. The processing industry always strives for the lowest possible price, as this benefits their profits, emphasized POC chairman Jasper Roubos.
Especially in situations where supply is sufficient and prices are under pressure, he believes it's important for growers to understand their cost price and the price at which they're willing to sell potatoes under contract. Roubos: "We're not talking about the free market with daily prices, but about conscious choices to make agreements early on for a crop that hasn't even started yet. If you're already settling for a contract price that's below or just above cost price, I don't think you're doing it right."
Cost calculator
The POC, in collaboration with accounting firms and consultants, has developed a cost price calculator. And now that the contract prices are being released, potato growers are being reminded of this once again.
The question is to what extent growers are currently sensitive to this. Some growers have made a firm commitment to cultivate the same acreage of potatoes as last year. They are also trying to maintain their contracted acreage. This is to cover as much of the costs of cultivation as possible, thus reducing their risk. Lower prices are one aspect of contract farming, but on the other hand, you also know what you're getting into.
Despite, or perhaps because of, the latter, there's also a group of growers who are increasingly seeing a decline in production. Why spend so much on lease when you can sense in your gut that the acreage will once again be too large? Of course, anything can happen during the season, but the fear of another year like that is strong. And not without reason, of course.
Shrinkage required of 15%
To revive the potato market, a 15% reduction is needed, as has been suggested for months. However, the chances of such a reduction being implemented are slim, as farmers know. That's why some potato growers are cautiously pulling the handbrake just to be safe. They're planting slightly fewer potatoes anyway, to save some money on the side.
News of the new contract proposals is filtering through. And those who are hesitant see this as confirmation of their intention to grow fewer potatoes. Less money and stricter conditions certainly don't bolster their confidence in the coming potato year.
Stricter standards for potato color and a requirement to supply a comparable variety in case of a defect. Contract volumes are based on grower loyalty to buyers. Other conditions have also been tightened, such as those for seed potato purchases, discounts based on transport distance, and potato size specifications.
In short, the conditions for 2026 are more clearly defined and detailed. Legally and operationally, the rules are stricter than last year. This applies, for example, to liability in the event of damage, crop failure, and crop registration. There are also clearer provisions regarding data use.