Analysis Potatoes
Update: this is what we know about contract prices 2025
Yves Capoen, responsible for potato procurement at Clarebout, states in response to an earlier version of this article that it is absolutely incorrect that the company has already started contracting for the 2025 harvest and communicated prices for this. This will happen at a later time and not as traditionally during Interpom. This article has been adjusted accordingly.
Many French fry producers wait until after the Christmas holidays before announcing their contracts. They are playing it safe and trying to gauge the mood in the meantime. This is what we know about their commitment for the 2025/26 season.
Traditionally, Clarebout, with factories in Belgium and France, is the first to kick off at Interpom in Kortrijk. Despite the potato fair attracting a record 24,000 visitors, the expected contract prices did not materialize, even at Clarebout. Several processors indicated that they have the puzzle solved, but will wait until well after Christmas and the new year to release the off-land contracts for the 2025 harvest.
Half a euro lower
Meanwhile, growers are gauging the mood. Prices of €17.50 per 100 kilos are mentioned for off-land delivery of Fontane. This is slightly less or equal to 2024 (week 42/43) compared to Clarebout, Agristo, and Farm Frites.
It is not known if Innovator will also have to make concessions. The price level was between €19.75 (McCain) and €20 (Farm Frites and Clarebout) this year.
Concerns
The possibility of a price reduction in the off-land segment does not come as a surprise to most growers. The French growers' organization UNPT took a stand last week by expressing their concerns about a possible price decline. This did raise some eyebrows at Interpom. There is no reason to expect price pressure. Especially in France, processing capacity is increasing and potatoes are needed.
Contract prices for stored potatoes are not yet known, but there are actually no signals to lower them. While the frenzy of the demand for fries may have subsided, even at the current selling prices, the margin remains at a good level. In two years, processors have seen their prices rise by three-quarters or even more. Factories also benefit from the decreased container costs. Since this summer, prices have dropped significantly and are at their lowest level in a year. Labor costs continue to rise, but many other expenses have not significantly changed. Think of energy, packaging materials, and frying oil.
Fewer off-land potatoes
The correction in the off-land period is mainly due to the unpredictability of this product. Both the springs of 2023 and 2024 were challenging, which has an impact on the volume and quality and thus the processing efficiency. It is difficult to anticipate this in advance. Many off-land growers have limited or no storage facilities, creating a compelling supply when harvesting begins.
It is true that off-land potatoes are usually the cheapest for the factory. The difference between the last Belgapom price for the old harvest and the first new one was €47.50. Last year it was €50. Dutch processors have been switching to longer storage with the old harvest for a long time. Growers are encouraged to invest in their storage and are better rewarded for it. The quality of this product, especially from the heavier clay soils, can be better controlled well into August.
In the dark about seed potatoes
On average, growers and buyers in Europe are optimistic, as evidenced at Interpom. At the current contract prices, it is a more than cost-covering cultivation. Especially now that grain and sugar beet prices are at a different level. Potato growers are cautious about seed potato prices. With an unchanged contract price, this could affect the bottom line. One advantage is that the availability and quality have significantly improved compared to 2023.
