Europe (Northwest): The potato sector seeks a balance between supply and high production costs

The North West European Potato Growers’ Association (NEPG), based in Gembloux, stressed the urgent need to reduce cultivated areas in the region, noting that farmers cannot produce or market below their costs.

To achieve a sustainable economic balance, the NEPG is making a direct appeal to the processing industry, urging processors to communicate their end-of-season requirements quickly and transparently. According to the organization, storing large volumes of potatoes without a clear market outlook generates significant economic losses and jeopardizes the future of the sector.

Looking ahead to the next planting season, the NEPG recommends that farmers adopt a cautious approach before signing new contracts, given that prices for these agreements are already set. The organization maintains that the most significant profits will come from potatoes destined for the open market and, therefore, advises limiting cultivated areas, even if sufficient seed is available.

The organization also emphasizes the importance of meeting new quality and variety requirements. Only crops with a realistic chance of being sold at reasonable prices should be planted, and any agreement lacking a clearly defined price should be rejected.

Regarding uncontracted volumes or those with quality issues, the NEPG warns of the technical, health, and environmental risks associated with leaving them on the plots. Therefore, it suggests alternatives such as using them for animal feed, processing them into methanes, or donating them to charities.

The NEPG also emphasizes the importance of European processed food manufacturers maintaining their competitiveness in the global market, but cautions that this should not compromise the sustainability of the European model. Therefore, it advocates for a balanced approach among all actors in the agri-food chain, recalling the strong relationship that traditionally unites producers and processors.

The sustainability of the sector also depends on innovation in the development and cultivation of more resilient potato varieties, less dependent on climatic conditions and less demanding in terms of resources such as water and other inputs.

Regarding the economic context, the organization emphasizes the importance of acting prudently. Greater clarity in sales forecasts for processed products would allow farmers to adjust both cultivated areas and their expenses. Although seed prices have decreased slightly, the NEPG warns that production costs, especially those related to energy, fertilizers, and diesel, could increase if geopolitical tensions in the Middle East continue.