Brussels Authorizes Temporary Self-regulation of the Potato Processing Sector

Brussels Authorizes Temporary Self-regulation of the Potato Processing Sector

The European Commission has decided to authorize the temporary self-regulation of the European potato processing sector, because of the impact that the closure of the hospitality industry has had on its activity.

In order to help producers of potatoes find a balance in this period of severe market imbalance, the Commission has decided to allow for agreements and decisions of farmers, farmers’ associations, recognized producer organizations, and recognized interbranch organizations concerning potatoes, for processing on a temporary basis, for a period of six months. These measures include:

  • market withdrawals and free distribution;
  • transformation and processing;
  • storage;
  • joint promotion;
  • temporary planning of production.

Such agreements and decisions concerning potatoes for processing could include: withdrawing potatoes from the market for orderly product destruction, or for free distribution to food banks, or to public institutions, processing potatoes for other purposes, such as animal feed, production for methanization, creating and finding storage capacities and preparing potatoes for longer storage periods, promoting the consumption of processed potato products and planning measures to reduce volumes for future plantations, and adjusting existing contracts for potatoes from the 2020 campaign.

Any agreement or decision concerning potatoes for processing will be temporarily authorized for a period of six months, as this is when existing stocks of potatoes from the 2019 campaign have to be managed, and the potatoes from the 2020 campaign will be harvested as of this summer, therefore this is the time frame in which the measures are expected to have the most significant impact.

The competent authorities of the Member States will have to be informed of the estimated production volume covered by the agreement and the expected period of application.