Vegetables & Fruits

Tough Times: As NEPG Potato Output Rises, Demand for Frozen Fries Falls

LinkedIn Pinterest Tumblr

As previously reported by the Northwest Europe Potato Growers association (NEPG), potato farmers across Belgium, Germany, France and the Netherlands are about to face an exceptionally challenging period. Free buy prices are dramatically low – between 0,50 and 4,00 €/100 kg depending on countries, varieties and conditions, without any real interest from buyers – and processors have clearly announced that both contract prices and contracted volumes will be reduced for the 2026-27 season.

NEPG Zone Production Expected to Reach 27,2 MT, 10% Higher than in 2024

The  table below gives yield, area and production for the four NEPG countries. These figures are provisional and may be revised in the coming weeks.

In this context, every grower must ask a crucial question: Can they afford to take the economic risk of maintaining current potato acreage, or should they consider a reduction?

Market forces are unforgiving, and “only the fittest will survive,” according to a statement from the NEPG.

A combination of factors has led to the very bad current situation: early plantings in good conditions, a 7% extension of hectarage and a 5% increase in yields, combined with enough rainfall (though much less in the south and much more in the north) has led to a 10% higher harvest. On the demand side, a contraction in the global frozen fries market (due to a combination of “Trump tariffs,” a strong euro vs the US dollar, increasing sales of processed products from China, India, Egypt and Turkey among other emerging french fry producing countries, have led to difficult difficulties.

Frozen Chips Exports: China and India increasing, EU-27 Decreasing

Over the past two seasons, China and India have multiplied by 10 their export of frozen fries to their neighbors. Current volumes are largely higher than 500,000 tons. Meanwhile, EU-27 exports have gone down for the second consecutive seasons.

There is no indication that the competitiveness issues affecting the European frozen French fries market will be resolved in the short term. As such the NEPG underscore that growers must carefully consider if it is economical viable to continue growing potatoes on the same scale and with so high annual renting costs.