After years of steady expansion and large investments in processing capacity, the European potato market entered a correction in early 2025. Demand for French fries has declined, international competition is increasing, and a record harvest is facing difficulties in finding buyers.
Oversupply, falling prices, and reduced sales are placing pressure on both growers and processors. More than 80% of potatoes are now contracted directly between growers and processors. This structure limits the ability to absorb surpluses and shortages, resulting in stronger price fluctuations and greater uncertainty.
Production costs in the EU-4 region (Belgium, the Netherlands, France, and Germany) have risen by about 75% in the past seven years, reaching €11,300 (US$12,200) per hectare. Land rents and seed potato prices are also under pressure, while India and China are increasing their participation in international trade.
According to DCA Market Intelligence, these developments signal the beginning of a new cycle for the European potato sector. The organisation, which uses the world's largest potato database combined with decades of experience in price risk management, has identified ten changes expected to shape the industry in the years ahead.
To view the whitepaper, click here.
Source: Potato News Today