Potato prices plunge in 2025, oversupply pressures growers
This year, potato prices have fallen sharply, at times approaching zero, ABN Amro reports.
Last year, prices were much stronger, prompting many growers to plant more potatoes. But demand dropped significantly in 2025, leaving farmers with large, unsold stocks.
Good weather contributed to a strong harvest, filling cold storage facilities even further.
Inflation also played a role in weaker demand, particularly for fast-food chains, which saw fewer customers and bought fewer potatoes for fries.
The falling prices do not immediately put growers in financial trouble. "Arable farmers have had very good years over the past three years," analyst Jelmer Schreurs of ABN Amro told NOS. "The reserves are solid because they always account for bad years as well. We don’t expect them to collapse immediately, but if next year is equally bad, it will be a different story," he added.
Most growers sell the majority of their potatoes under contract, with prices agreed upon before planting. About 80 percent of potato sales are made this way. The remaining potatoes are sold on the open market, where prices have dropped sharply.
Looking ahead, growers are expected to shift partly to other crops next year in hopes of higher profits. "Some will move from potatoes to onions and brassica crops. We expect that supply to shift, which will put downward pressure on prices there," Schreurs told NOS.
