Belgium: Potato prices are plummeting, growers are worried
Potato prices are plummeting, ten times lower than last year. With consumption declining and harvesting costs remaining unchanged, farmers are worried, particularly about the renegotiation of contracts with the potato and chip industries.
We visited the farm of Charles-Bernard Hégée in Bonneville, in the commune of Andenne, in the province of Namur.
This producer has been growing potatoes for over thirty years. And he sells part of his production to French fry manufacturers, through contracts and prices planned well in advance. The rest is sold on the open market, where a ton is currently selling for 15 euros. That’s 10 times less than last year, a trend already observed at the end of spring.
" I’m very worried about prices ," confides the farmer, " because despite everything, we’re making significant investments. And today, when you sell below your cost price, it won’t last very long. One year is possible. But not two... "
The same is true of the Flemish side: " This price does not even cover the harvesting costs, let alone other costs ," worries Pieter Van Oost of the Flemish agricultural organization Boerenbond. " At this price, a hectare of potatoes brings in 600 euros while the costs (plants, fertilizer, harvest, etc.) can easily reach 6,000 euros ."
On the free market, supply and demand determine prices. Among French fry manufacturers and processors in Belgium, the Netherlands, and Germany, demand for potato products has fallen by 500,000 tons. A surplus is expected this season. " I don’t think a farmer will leave his harvest in the fields ," worries Charles-Bernard Hégée, " because leaving his harvest in the fields sends a very bad signal to the public. But by the time they’re harvested, I don’t think there will be anyone to buy the quantity produced ."
The Walloon potato industry is worried about the renegotiation of contracts with manufacturers next year. " Since everything is a question of supply and demand, it’s a logical reaction on the part of the manufacturer to also want to lower contract prices ," analyzes Pierre Lebrun, president of the Walloon Potato Federation. " If there is certainty of having enough supply, and even too much under current conditions, there is certainly a temptation to lower prices ."
The contracts are supposed to guarantee farmers a minimum income so they can continue to invest. There are more producers than there were ten years ago, and they produce more. Eventually, the price of fries could also fall.
Fuente: rtbf.be
