The potato production in the Netherlands, Belgium, Germany, and France has grown significantly in the past year. Europe may even face a surplus as a result. Yet, your fries probably won’t get any cheaper.
This is according to research by DCA Market Intelligence on Thursday. The market agency fears that the market will become unbalanced due to the large quantity of potatoes grown. The agency conducted research in the Netherlands, France, Germany, and Belgium and concluded that potato cultivation there has grown by 77,000 hectares: an increase of 5.5 percent.
Growers probably still expected a good market when planning their cultivation last winter. But there is less demand than expected.
The countries are also suffering from competition from growers in India, China, and Egypt. They are investing heavily and seeing their market share increase in Asia and the Middle East, thanks to lower costs and increasing quality.
According to the agency, the fact that fries are not becoming cheaper for consumers has to do with the high contract prices and high production costs. In addition, producers often make agreements with their customers for a longer period.