Farm Frites Is Looking for Multi-year Contracts

Farm Frites needs a steady supply of potatoes so is focusing on negotiating multi-year contracts this year. According to the company, the focus is on two- and three-year fixed price contracts, whereby a three-year fixed price agreement is seen as the basis.

Farm Frites reportedly said interest in one-year contracts is declining and growers are mainly interested in other options that suit their business operations.

While multi-year contracts are not new at Farm Frites, the strategy is different. Last year, multi-year agreements were replaced by a ‘rolling contract.’ But now, the company brings back two or three-year fixed deals.

For the 2021 harvest, the processor announced the basic price for Innovator and Agria would remain at the value applied to last year's one-year contract (harvest 2020) - EUR95 (Fontane), EUR115 (Innovator) and EUR112.50 (Agria). With a two-year contract, the grower will get EUR5 per ton less, and with a one-year contract, that difference becomes EUR7.50.