A lesser harvest is expected for the next market year, which has led to concerns about tightening market fundamentals and an increase in processing potato prices in Europe. The Dutch processed potato Mintec benchmark price was EUR190/mt in March of this year, up 65.2% month over month (m-o-m) but down 19.1% year over year (y-o-y).

“Belgium’s Fontane potatoes are presently priced at EUR200/mt, an increase of 100% m-o-m, down 11.1% y-o-y. Market sources describe the supply-demand situation across the industry as stable, while processors largely rely on contractual agreements to meet their requirements. However, the scarcity of good-quality potatoes has led to heightened competition among processors seeking superior stocks,” according to a recent Mintec release.

Because growers are unable to lift their crops due to rainfall in many regions of Northern Europe, potatoes left in the ground will eventually rot. This has exacerbated industry-wide concerns about quality. Around 10% of the current crop in the Netherlands, Belgium, France, and Germany – the NEPG region – remains unharvested, according to estimates. But growers hope that the predicted dry weather will help them harvest their delayed crop. According to market sources, yields will be 5-10% less than the 23m tonnes NEPG predicted in September.

“Global demand for processed potato products is robust, offering opportunities for potato growers and sellers of potato-related products in the U.S. with expectations of a larger crop; this increased supply from the U.S. could limit any rise in European finished product prices,” the experts summed up.