News Potatoes
No crop comes close to potato margins
The highly volatile potato year 2023 continues in the same vein in the harvest year 2024. However, the start of the current potato season 2024 is different than many growers had expected, as noted by Ferdi Buffen, director of Weuthen, in his traditional speech at the annual Kartoffeltag of Europe's largest potato trading house. Despite this, Buffen remains positive about the future of potato cultivation in Europe.
Buffen expects that the potato market has likely reached its low point at €12.50. The potato acreage has expanded significantly this season, and in many cases, there is no storage available for those extra potatoes. Also, due to a shortage of seed potatoes, there are dual-purpose varieties that growers want to deliver straight from the field. For potatoes out of storage, the German potato trader expects prices ranging from €27 to €35. Especially in Germany and France, the acreage has expanded this season. Weuthen estimates the yield in the EU-4 at 22.50 to 23.50 million tons. However, Buffen remains cautious. "The late-planted crops still have growth potential, so a reliable harvest estimate can only be made in mid-October."
Industry sets the tone
Buffen is positive about the future of potato cultivation in the Hafpal region (Northwest Europe). "After the COVID-19 crisis, the processing industry is setting the standard for agriculture in Europe with very attractive contract prices. No other crop can come close to these margins." Processors have invested significantly in additional capacity in recent years and are continuing that trend. Buffen expects an additional 50,000 hectares of potatoes to be needed by 2035. He believes there is sufficient potential in Germany and France to further expand cultivation.
Although the cards seem to be favorably stacked for the European potato sector, Buffen warns that we do not have exclusive rights. "European processors face global competition. Not only North America competes in the world market. Factories are also being built in China, India, and South America that aim to export to growing markets. Therefore, it is important to remain competitive," Buffen says in the outlook for 2025.
