Record harvest and leftover stock drive Dutch potato prices to collapse
Dutch potato farmers are under severe financial strain as a record harvest collides with leftover stock from last year, driving market prices to collapse. According to De Telegraaf, farmers now allegedly receive less than 5 cents per kilo, far below production costs.
In Tholen, grower Hendrik Jan ten Cate described the situation: “I am convinced that we are going to lose a lot of money this year. I have potatoes in my shed for which I have no buyer. And suppose I do have a buyer, then I get at most 20 percent of what I should be getting. Losing money is one thing, but not being able to get rid of them is even worse.”
Export options are limited. “In other countries, they are not necessarily waiting for our potatoes, because European potatoes are relatively expensive,” Eric de Lijster of DCA Market Intelligence told De Telegraaf.
“In China, India, and Egypt, potato cultivation has also expanded. They produce fries much cheaper, which is very unfortunate for European parties.” He added that a strong euro and uncertain economic conditions worsen the pressure. Consumers will not benefit from lower prices despite the market collapse. “In the supermarket it never gets cheaper,” de Lijster said.
He told De Telegraaf that French fry manufacturers are locked into contracts with farmers at a minimum of 20 euros per 100 kilos. “One solution for them is to negotiate the highest possible price with supermarkets, because costs such as energy and labor have also risen sharply.”
