Due to rising costs of inputs combined with firm demand, the Mintec Benchmark Prices of processing potatoes in Belgium rose by 11% in the two weeks up to April 20, 2022, and up 264% year-on-year (y-o-y).

“This rise follows a slight decline in prices in mid-March amid fears of trade disruption due to the Russia-Ukraine geopolitical conflict. The uncertainty led to many processors withdrawing from the free-buy market and relying on contracted supplies, yet, prices still remained well above 2021 levels,” according to the above-mentioned source.

For the next period, the experts added, there is a lot of uncertainty surrounding potato areas for the 2022-2023 season within the NEPG (North-Western European Potato Growers) zone due to concerns over high input costs, which are adding significant financial pressure on growers.

“The price of natural gas, fuel, and electricity has reached unprecedented levels, and these are all required to produce potatoes, with electricity largely required for grading, packing, and storage. Additionally, natural gas is a key feedstock used to produce fertilizers, and the continual growth in natural gas prices is driving fertilizer costs to record highs, causing many growers to reconsider usage. The significant cost pressures are expected to have impacted EU planting areas for the upcoming season. If potato production declines, prices are likely to remain firm,” the analysts concluded.