Agrifoto

Analysis Potatoes

Clarebout contract encourages Innovator further

December 23, 2024 - Niels van der Boom

Europe's largest potato processor, Clarebout Potatoes from Nieuwkerke, Belgium, aims for a line of stability in the potato contracts for the 2025 harvest year. It is noteworthy that it focuses on longer storage and slightly shifts its focus to Innovator. The company can use every potato with the opening of a new fry line in Dunkirk.

Clarebout keeps its contract prices for the 2025/26 season largely the same as this season (2024/25), when it adjusted the amounts by up to €3 upwards. Only in the off-land segment, the price for Fontane decreases by €0.50 per 100 kilos. The focus shifts to delivering from storage. Thus, Clarebout is the second Belgian processor to choose to move from the off-land season to more potatoes from storage. Something most Dutch processors have been doing for much longer.

More potatoes
The company needs more potatoes across the board due to an increase in processing capacity. "In our new factory in Dunkirk, a second processing line is being started," explains procurement director Yves Capoen. "That's why we are focusing on potato cultivation growth, especially in France."

Off-land delivery for the main harvest begins in week 37 at €17.50 for Fontane and €20 for Innovator. In week 17, both varieties are priced at €27 and €29.50. By the end of June, Fontane is priced at €29.00. In week 28 (the week of July 9), Clarebout starts processing the new harvest. The contract for Amora starts at €25. Sinora will also be processed starting from the end of July.

Innovator even after March
It is the first time Clarebout is publishing a contract price after March for Innovator. Until this year, contracting for this variety ended after March. According to Capoen, this is due to demand from the fast-food segment, where the long, thin fries of this variety are very popular and remain so. The contract period for this variety ends in mid-June at €31.50. In July, it still contracts Fontane and Markies, although growers must have mechanical cooling available.

"In addition to this stability in potato prices, seed potato prices for the coming year are decreasing," explains Capoen. "Depending on the variety and size grading, there will be a 10% to 15% price reduction." By largely keeping the prices the same, the company aims to be a stable partner for its suppliers and maintain a good relationship with growers.

"We see and feel that competition in the fry market is increasing worldwide," continues Capoen. "It is therefore very important for Europe to remain competitive enough not to lose market share." Not only did processing decrease this late summer and autumn in the Netherlands, but companies in Belgium also faced challenges. "Potato cultivation is also under pressure," notes the procurement director.

Quality growers wanted
"Due to the climate, but also consider political decisions that, for example, have an impact on pesticide policies. Therefore, as Clarebout, we need high-quality growers who can deliver high-quality products. That's what we focus on with the contracts."

Niels van der Boom

Niels van der Boom is a senior market specialist in potatoes and other soft commodities at DCA Market Intelligence.
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