Netherlans: New French fries potatoes, they are already here and the price the farmer gets is remarkably low

Quickly ripe, but little growth

Due to the warm and dry weather, early potatoes are ripening faster than usual. According to the agricultural sector, growth has even stalled in fields without irrigation. This means yields are low in many fields. Some potatoes are already being harvested, but they are often smaller and fewer in number than hoped. This seems to contradict the low price.

Why is the price so low then?

While availability appears limited, other factors are driving down the price:

• A large portion of the harvest has already been pre-contracted. What’s now hitting the open market is essentially surplus, and it’s being sold at rock-bottom prices.
• It’s early in the season. Traditionally, prices are often lower at the start, before the market stabilizes.
• There’s less demand for free-range potatoes. Major chip producers have already purchased sufficient quantities. There’s even a threat of a chip surplus in Europe.

What does the chip shop owner notice of this?

Despite the low price farmers are currently selling their potatoes for, the frying industry isn’t seeing much of a difference. This is due to a few factors:

• Most French fries were contracted months ago , often at higher prices. As a result, purchase prices for fries remain stable or even high.
• Processing, storage and transportation costs have risen , and these largely determine the price of ready-made chip products.
• Wholesalers and processors maintain buffers and do not respond immediately to price drops in the free market.

In short: the dirt-cheap potatoes on the free market are interesting for traders, but most entrepreneurs with a chip shop do not buy directly from them.

Will consumers notice anything of this?

Consumers shouldn’t expect cheaper fries either. On the contrary: retail prices have actually risen in recent years. This is because businesses are facing significantly higher costs, such as:

• Frying oil, gas and electricity , which have risen considerably in price.
• Packaging and disposable materials , often more expensive due to raw material and transport problems.
• Personnel costs , partly due to a tight labor market.
• Commissions and delivery costs , when using platforms such as Thuisbezorgd and Uber Eats.

Even if the purchase price of potatoes falls temporarily, that is not enough to reduce the selling price of fries.

What can you do as an entrepreneur?

Stay in close contact with your supplier. Those who buy smartly and pay attention to quality differences may still be able to find a good deal. But beware of temporary rock-bottom prices: cheap isn’t always good, especially if it comes at the expense of the quality you want to offer your customers or guests.

Practical tips for the new potato harvest

Actively inquire about the origin of your fries.Ask your supplier or wholesaler what your fries are made from. Is the new harvest already being used? And what about the quality?Pay attention to flavor and baking properties.New potatoes often contain more moisture and slightly less sugar. This can affect the color and crispiness. Therefore, test a new batch before using your entire stock.Don’t be swayed (only) by the lowest price.Cheap potatoes or fries may seem appealing at first glance, but they also need to perform well in your deep fryers. Poor frying results will ultimately cost you more than you save.Monitor your margins, but keep communicating with your guests.Perhaps explain why your fries aren’t dropping despite reports of cheap potatoes. Many guests appreciate openness and understand that, as a business owner, you face significant costs.Consider a trial batch.Some suppliers offer trial batches of new potatoes or fries. This allows you to test whether these fries are a good fit for your business and your guests without any significant risks.