NEPG Warns Excess Planting Could Undermine Grower Profitability

The North-Western European Potato Growers (NEPG) has renewed its call for a reduction in potato planting area across the region, arguing that the sector must adopt a more balanced, medium-term approach to maintain economic viability for growers.
In a statement issued in Gembloux on March 6, the organisation warned that producers cannot continue expanding production if potatoes are sold below their production costs. The group stressed that maintaining profitability for farmers must remain a central consideration in the evolving European potato market.
Need For Clear Market Signals
With only a few months remaining in the 2025–2026 season, NEPG urged processors to provide growers with clearer and faster communication regarding their end-of-season requirements.
According to the organisation, producers should not be expected to maintain potatoes in storage without a clear understanding of market demand. The group stated that “for producers, it is not economically justifiable or viable to keep volumes in storage without commercial visibility.”
The association emphasized that clearer signals from processors would allow farmers to align production decisions more closely with real market demand, reducing the risk of unsold inventories.
Competitiveness Must Not Undermine Sustainability
The NEPG acknowledged that European processors must remain competitive in global markets for processed potato products. However, the group warned that competitiveness should not come at the expense of the sustainability of the European production model.
The organisation highlighted the importance of the long-standing relationship between growers and processors while calling for continued investment in agronomic resilience. In particular, it emphasized the need to develop potato varieties better suited to climatic pressures and resource constraints.
The group stressed the importance of breeding varieties that are less sensitive to weather volatility and that require fewer inputs such as water and fertilizers. At the same time, NEPG pointed to the importance of strengthening seed production systems for these improved varieties.
According to the organisation, the long-term viability of the sector depends on maintaining a balanced and respectful relationship between all stakeholders in the value chain.
Contract Discipline Urged
The organisation also warned growers to exercise caution when signing supply contracts. With contract prices often fixed in advance, NEPG said that potential financial gains in the sector increasingly depend on the market for so-called “free buy” potatoes.
This dynamic makes limiting planting area even more important, the group noted, particularly in seasons when seed availability is abundant.
NEPG warned that growers should not focus solely on securing contracts out of fear that production volumes may decline. Instead, producers must ensure they fully understand new varietal and quality requirements introduced by processors.
The organisation advised farmers to plant only volumes that they reasonably expect to sell at a profitable price.
In addition, NEPG cautioned that any purchase offer that does not include a clearly defined price should be rejected.
Risk Of Surplus Potatoes
The group also warned that potatoes produced outside contract volumes or those failing to meet quality standards may struggle to find buyers.
In such cases, unsold stocks could remain in storage or potentially be cleared onto fields. NEPG highlighted that such outcomes can carry technical, health and environmental consequences.
To avoid these risks, the organisation recommended that producers consider alternative outlets first, including animal feed, bio-energy production through methanisation, or donations to charitable organisations.
Rising Production Costs Remain A Concern
Looking ahead, NEPG said that better transparency regarding sales of processed potato products would help align production levels with industrial demand.
While seed potato prices have fallen slightly, the organisation warned that production costs may rise again due to external factors. In particular, energy, fertiliser and diesel costs could increase if geopolitical tensions in the Middle East persist.
Against this backdrop, NEPG reiterated that growers will need to reduce both planted area and production costs to maintain profitability in the coming seasons.














