Netherlands: Potato growers are worried about Farm Frites’ significantly higher discounts

Farm Frites wants to implement the significantly higher discount system because the producer has noticed that the number of damaged and quality defects is significantly higher than initially anticipated. With the higher discounts, the company hopes to still be able to revalue lower-quality potatoes. According to Farm Frites, clear agreements with growers are essential for this.

According to Ten Cate, the letter from Farm Frites seems coercive to the potato growers in question, and it makes them feel as if they have little choice: agree to the increased discounts or risk having entire batches of the 2025 harvest rejected. The LTO director received numerous signals from concerned potato growers.

Sign within five days

In the letter, the chip company asks the growers to sign the proposal within five days. "If you do not wish to agree, we will call off your potatoes and assess each load individually in accordance with the originally signed terms," ​​it reads.

In a meeting LTO had with Farm Frites on Monday, the company provided further clarification on the proposal. "In the southwest, they’re seeing more potatoes with harvest damage and batches that are on the finer side. With the current contract terms, Farm Frites believes many potatoes would fall outside the requirements, which would lead to a large number of rejections," Ten Cate explained. "The higher discounts should prevent that situation and ensure smooth supply to the factory."

’Approach not appropriate’

LTO finds the way Farm Frites approached growers about this inappropriate. "Growers feel pressured. If they don’t agree, it could impact their sales and therefore pose a risk of rejection," Ten Cate explains.

According to LTO, such practices could violate the Unfair Agricultural Trade Practices Act. This law stipulates, among other things, that trading parties may not abuse the dependent position of agricultural producers.

The LTO Arable Farming division also sought legal advice and, based on that, filed a report with the Netherlands Authority for Consumers and Markets (ACM). Ten Cate also appreciates that Farm Frites is now actively engaging with growers who haven’t signed. "They’re handling that well."