Dutch Processors Announce Prices for '20/'21 Season

Dutch potato processors have recently presented their fixed price contracts for the 2020/2021 season. Just like last season, there is a price increase, according to boerenbusiness.nl. The price spike is generated almost exclusively by the storage phase, likely to compensate for the ban of CIPC.

Last year, the higher prices were caused by the increasing cultivation costs as a result of irrigation and the compensation for a yield decimated by drought. This year, the culprit is clearly the ban on CIPC.

The lack of CIPC has two important consequences: first, storages must be cleaned, and secondly, there's a higher cost involved. Alternatives are considerably more expensive.

French fries processors began to talk about the reduced stocks last autumn, and had major concerns regarding their ability to keep the lines running. Subsequently, prices for import potatoes increased by EUR1.70 to EUR1.80 per 100 kilos. This year, however, availability is less of an issue.

Despite a wet harvesting season, the factories are very pleased with the quality in-store, although there's still some uncertainty regarding the early potatoes.

As far as varieties are concerned, boerenbusiness.nl notes that the Innovator variety seems to be better appreciated overall, with some processors betting extra on it and encouraging it with a better price point. Another factor is that the Fontane variety has performed relatively well over the past two (challenging) years.

*** This table is intended as an overview and NOT as a comparison between processors. The table shows the basic price without premiums and surcharges. Agristo and Farm Frites work with the 35-millimeter grading up. Aviko, McCain and Lamb Weston / Meijer with 40 millimeters up.

French fry producers are almost unanimous in their prediction that the European potato area will increase this year. Only a little bit of growth is possible in the Netherlands and the Flemish part of Belgium. More land is available, especially in livestock farming areas and growth is possible in Wallonia, parts of Germany (Lower Saxony) and northern France.

Although the processing capacity has not expanded greatly in the last 12 months, new factories are planned, but still have to be built. Two seasons marked by drought have impacted the potato supply, but a favorable growing season can quickly change this.