The processing potato markets in Belgium and the Netherlands have recently witnessed notable price reductions. As of March 11, 2025, the Expana Benchmark Price (EBP) for Fontane potatoes in Belgium decreased by 20% week-over-week to EUR 175 per metric tonne (mt). Similarly, the Dutch EBP for processing potatoes fell by 16% to EUR 270/mt during the same period.
Factors Influencing Price Declines
Several key factors have contributed to this downward trend:
- High Potato Availability: There is an abundant supply of potatoes, with processors primarily fulfilling their needs through contracts. This situation has limited demand in the free-buy market, leading to subdued trading activities.
- Seasonal Supply Dynamics: Dry weather conditions have facilitated planting preparations, raising expectations for an early harvest. This potential increase in supply exerts additional pressure on current market prices.
- Production Variations Across Regions: While the Netherlands experienced a 4.6% decrease in domestic production compared to the five-year average, Germany and France reported year-over-year production increases of 8.9% and 12.6%, respectively. These regional disparities have influenced overall supply and pricing dynamics within the North-Western European Potato Growers (NEPG) countries.
Impact on Processed Potato Products
The decline in processing potato prices has led to a significant reduction in the prices of French fries and other processed goods. After reaching record highs in December and January, Dutch processing potato prices have fallen by 23% year-on-year, directly impacting the processed products market.
Future Outlook
Market participants anticipate that improved weather conditions could lead to an expansion in planted acreage. However, the NEPG has cautioned that such an increase could drive prices down in the 2025/26 marketing year. Producers are advised to monitor these developments closely and consider strategic planning to mitigate potential risks associated with fluctuating market conditions.
The recent declines in processing potato prices in Belgium and the Netherlands underscore the complex interplay of supply dynamics, regional production variations, and market demand. Stakeholders in the potato industry should remain vigilant and adapt to these evolving conditions to maintain profitability and sustainability.
