Free potatoes do not exist

The potato sector is struggling. By now, that is no longer news. What is striking, however, is how quickly the public debate allows itself to be seduced by images of 'free potatoes'. Images that score well, evoke emotions, and are media-friendly, but at the same time distort the reality of a complex and high-performing sector.

Let us start with the facts. Behind every potato lies a chain of investments: seed potatoes, fertilization, crop protection, mechanization, labor, and storage. It concerns a capital-intensive crop with a high risk profile. The fact that a portion of the free-market potatoes currently cannot find a market is undoubtedly a problem, but it is not the whole story of the sector.

The vast majority of the Belgian potato harvest is under contract. With a few exceptions, these contracts are correctly honored by a potato processing industry that belongs to the absolute world elite. That story remains underexposed.

In addition, there is also a fully-fledged fresh market for table potatoes, with different varieties, different sales channels, and a different economic logic. Growers specializing in quality, packaging, and short supply chains build fair pricing around this. The image of 'free potatoes' cuts right through that business model.

Instead, the focus shifts to giving away surpluses for free. Well-intentioned, without a doubt. But is this the right choice economically and strategically?

First, it undermines price perception. The consumer who hears that potatoes are being given away for free inevitably asks themselves why they should still pay for them. That puts pressure on the entire market.

Secondly, it creates confusion about the product itself. The surpluses consist mainly of industrial varieties such as Fontane. Suitable for processing, but not for every use. When consumers are disappointed with the result, this reflects on the potato as a whole.

Thirdly, a more fundamental question arises: must we devalue food to restore a temporary market equilibrium? Food production is not a residual category. It is the result of entrepreneurship, craftsmanship, and risk.

What is needed is nuance. Respect for contracts. Insight into the diversity of the market. And correct communication.

Let us be clear: free potatoes do not exist. The bill is always paid – by the grower, the supply chain, or ultimately the consumer.

Jan de Keyser

Is director Agri & Food BNP Paribas Fortis in Belgium. In his opinions he reflects on strategic developments in the agricultural sector.

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.