NEPG potato area up 5% as prices slump

Official statistics on potato hectareage—broken down by ware (fresh and processing), seed, and starch potatoes—are not yet available. The increase in area for the NEPG zone is provisionally estimated at 5 per cent, or 25,000 ha; this figure will be refined when the official data are published in the coming weeks. Despite some recent rain and emerging irrigation restrictions, drought remains a serious concern. Post-emergence herbicide treatments have caused phytotoxicity in places, which, together with dry conditions, may slow plant growth and ultimately reduce yields.

Potato growers have been puzzled by the sharp fall in producer prices since early March. Prices plunged from €30 / 100 kg at the end of February to €7.50 / 100 kg today. This dramatic drop stems from multiple, roughly concurrent factors. First, exports of frozen chips and other processed potato products began to slow last year, with EU-4 trade volumes (Belgium, Germany, France, and the Netherlands) down 1.8 per cent from 2023 to 2024 (Eurostat). After a 64 per cent price rise between 2021 and 2023, average selling prices plateaued in 2024 and have since started to decline.

Growers also faced unexpectedly high production costs and realised that European frozen‐chip prices were no longer competitive with those from Canada, China, India, and other new market entrants. Changes in U.S. policy—new taxes and tariffs imposed by the current U.S. administration—further hindered European exports and weakened the dollar, making our products relatively more expensive. Meanwhile, record-high spring buying prices in 2023 and 2024 had led many farmers to assume low prices were a thing of the past. Processing errors with the 2024 crop produced substandard chips and poor sales, and unusually early planting meant that the old and new crops hit the market almost simultaneously, further depressing prices. Finally, April and May rains, though below long-term averages, encouraged rapid crop development, delaying any price recovery.

European potato growers now compete in a highly globalised market with intensifying rivalry from new frozen-chip producers worldwide. Although overall demand for processed potato products continues to grow, our competitiveness is undermined by higher European production costs, driven by energy, freight, environmental compliance, and stricter regulations on water use, pesticide application, and carbon emissions. In addition, increasing soil-borne pests (nematodes, wireworm, nutsedge) and emerging diseases such as stolbur add technical and financial risk. Growers must recognise these limits and work collaboratively across the value chain to bolster competitiveness before further legislative measures—longer crop rotations, cultivation bans in vulnerable areas, or tighter pesticide restrictions—are imposed.

For more information:
NEPG Foundation
Tel: +32 (0) 81 610 656
Email: [email protected]
www.nepg.info

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