The Northwest European Potato Growers Association (NEPG) expects that only limited space will be left in the EU4 countries for growing potatoes in a larger area during the coming growing season. This is so, despite the growing demand, in particular, for fried potatoes.
The European Growers Association notes that there is little room in the Netherlands and Belgium to grow more potatoes. Potato expansion will be particularly difficult due to the additional greening requirements of the New Common Agricultural Policy and restrictions associated with the nitrogen policy. Producing more deep-fried potatoes is only possible if starch and seed growers choose a new growing target.
In a press release on the development of potato cultivation, in particular in the Netherlands, Belgium, Germany and France, NEPG says that, given the positive mood in the potato market, an area expansion of a few percent is usually evident. However, for potato growing areas in France and Germany, higher production of French fries must also be provided by table potato producers who are switching to other production.
Availability of water
For these two countries, the NEPG takes into account that not all arable areas are suitable for intensive potato production due to limited irrigation opportunities during periods of drought. In addition, for Northern Germany and some regions of France, the transport distance to the manufacturing industry in the Netherlands and Belgium is a significant disadvantage.
The NEPG is also concerned about the decline in seed production in the EU4. The producers’ organization warns that this could create problems with the availability of good source material from spring 2024. It is expected that next season the area under seeding in these countries, as well as in Scotland and Denmark, will be reduced by 5,000 hectares. For various seed producers, growing French fries is more profitable there.
Free stock bearing
At the moment, there are practically no free potatoes in the Netherlands. The Verenigde Telers Akkerbouw (VTA) inventory shows that free stock is 13 percent lower than last year and 20 percent lower than the five-year average. Now that processors have structurally raised contract prices for the coming season, more potato growers seem ready to commit to production ahead of time.
The NEPG is scornful of the high coverage of contract potatoes for french fries. The producers’ organization believes that this is ultimately detrimental to the functioning of the free potato market. Especially in years with good yields and therefore oversupply, this can have serious implications for the price formation of the potato market.
