Belgian potato chain takes action against surplus

In Belgium, but also in the Netherlands, Germany, and France, there are too many potatoes. In each of these countries, the surplus amounts to several hundred thousand tons. Of course, the new season has yet to begin, and all sorts of problems could arise, but given the current stocks in storage, it's wise to consider this. 

Some farmers are busy working to get rid of the quantities they likely won't be able to sell. Some potato growers are sending several truckloads of potatoes to livestock farmers every week. This way, some growers manage to find a use for several hundred tons, so they don't have to haul the surplus product behind the barn.

Ultimately, not all potatoes will find a place in a cow's mouth. Besides individual actions, there are also forage traders who are directing potatoes en masse to livestock farmers. This sales channel is therefore overflowing, and there are hardly any gaps left to be found.

Avebe will soon shut down factories
Starch company Avebe is also receiving ample supplies of potatoes, but as soon as the factories are shut down, that sales opportunity will be cut off. Avebe is expected to close its doors for potatoes from the 2025 harvest at the end of March or in the first days of April. The exact date of the factories' closure will depend on processing speed and quality, the explanation adds.

In this regard, the starch manufacturer emphasizes that its factories are full with the volumes reported by starch growers at the end of last year. Moreover, Avebe's cooperative terms and conditions state that "potatoes grown for a purpose other than starch are less attractive to supply." With this, Avebe simply wants to indicate that selling through it is not a solution for the large surplus of French fry potatoes.

Fermenters also run heavily on potatoes. They benefit from the cheap raw material, but even they can't use an unlimited amount of potatoes. Potatoes are generally less suitable for fermentation than many other products because they contain about 80% water. On the other hand, potatoes are often offered for practically nothing, which means a large amount of potatoes are still disposed of through this channel.

Processor limits itself to contract quantities
This year, potato processors are limiting themselves to purchasing contract potatoes, preferably with as few potatoes as possible delivered. The export of ware potatoes is struggling. While there are sales opportunities for excellent potatoes suitable for fresh fries, bulk exports are still slower than expected and hoped. The product is exceptionally cheap, but low demand and high transport costs are hindering smooth sales.

Processors will extend the season somewhat to secure cheap raw materials, but even that has its limitations. Fewer early contract potatoes will be planted, but they will still need new potatoes for certain products. And then there's the issue of quality. As the storage period increases, the quality of the potatoes deteriorates. Certain varieties are simply no longer suitable for processing in July or August.

So, for some potatoes (those of particularly high quality), there's still some room for improvement in the season. This doesn't apply to the bulk currently in (air-cooled) storage. For many potatoes, the storage season from the 2025 harvest has already begun early, so the end is in sight sooner rather than later.

Harvest of 4,2 million tons of potatoes
The Netherlands harvested a total of 4,2 million tons of table potatoes last year. Of these, 1,13 million tons were processed and 376.000 tons were exported up to and including January. During this period, the Dutch also ate table potatoes, and some potatoes were sent to feed and starch company Avebe. All in all, roughly 2 million tons of potatoes found a destination.

Based on market sentiment, sales in the Netherlands appear to be very poor. However, this isn't so bad when you look at the figures. Despite the absence of processors from the purchasing market, the processing of Dutch potatoes is only 2% (23.000 tons) behind last year. The difference in exports is slightly larger: -9%, or 38.000 tons.

All in all, this means that 60.000 fewer tons of Dutch potatoes were processed or exported in the period up to and including January. This is despite the fact that the Dutch table potato harvest was 953.000 tons larger last year (+29%), according to figures from Statistics Netherlands (CBS). With this in mind, and considering the current state of export and processing, it doesn't look likely for the time being that these activities will ensure that the surplus of potatoes is properly absorbed.

Alternative sales
So an alternative will have to be found. Some farmers are already saying they're considering spreading potatoes on their fields. However, that's not a solution either, because spreading potatoes on their fields runs the risk of creating an even bigger problem with late blight and potato sluggishness.

But what then? In that respect, it's a good thing that in Belgium, parties from the entire chain are meeting within the Belpotato network to discuss this topic. The industry says it wants to contribute. This won't be the ultimate solution, but you have to start somewhere.

Given the potential scale of the problem, all options, large and small, will have to be explored to address the surpluses. For example, in France, a platform has been established to promote the sale of potatoes to livestock farmers. While this will be of little use here, as this sales channel is already fully utilized, the idea will likely mitigate the surplus problem somewhat. All in all, it's high time that, following Belgium, initiatives are launched in other countries to explore how to minimize this year's potato problem—and the coming season as well.