There is a lot of negativity surrounding the Belgian potato market at the moment, much to the annoyance of Christophe Vermeulen. The Belgapom CEO says that there is a lot of complaining, but that everything is a lot more nuanced than it often comes across. "The harvest is good, the acreage is record high, and there is no extra demand on the free market. But contract prices are indeed historically high. The party mood among growers when these were announced has apparently been completely forgotten."
© BelgapomLooking at the current situation, Christophe says it is hard to say. For two weeks now, there has been no Belgapom listing for the storage potatoes Fontane and Challenger. It shows that there are simply too few transactions for an official listing, which, at Belgapom, is defined as "potatoes suitable for frozen fries". "The relationship between growers, traders, and factories is now clear: the factories are not taking additional potatoes this year. So, free market transactions are almost non-existent. On the other hand, however, contract prices are historically high and just being exported, but the free market is, as we say, 'on its hiatus'."
Those who have gambled on the free market are drawing the short straw for the time being
Those who have gambled on the free market are drawing the short straw for the time being.
"And that does happen sometimes," explains Christophe, who is annoyed that so much negativity is being hurled into the world. "What annoys me is that people immediately say everything is bad as soon as the industry doesn't have additional demand. There is a lot of movement in the global market, and that is making itself strongly felt in our export-oriented sector. And let's not forget: the hugely increased contract prices were welcomed by growers for years. Now, expectations just seem way too high. Sometimes you just have to breathe and allow the industry to adjust to changing economic conditions. It has been a party for years, not for a while now. That's part of it."
"And yes, there are too many potatoes worldwide," he continues. "There is talk of a 'potato tsunami'. So we have to compete with neighbouring countries, but competition is not necessarily a bad thing. It is just an exceptional year because there is no extra demand. Growers had counted on that, but it's just not there. On top of that, the discussion often gets bogged down in complaining. As if growers have never experienced a down year. That is simply not true. Contractually, the potato market remains relatively strong. Factories have covered about 80 per cent of their demand through contracts, often at historically high prices. Many growers with contracts are fine as a result. Only those who have gambled on the free market are losing out for now. I also find that incredibly sour, especially for smaller companies that depend on the loose market, but it is also part of the game."
Turmoil caused by rumours and half-truths
"It's how it works. Last year, free market prices were extremely high in May, June, and July, up to €600 per tonne. Then you didn't hear anyone complaining. In 2024, companies together paid €1.5 billion for potatoes, a record amount. In doing so, we must also defend our competitive position as world leaders. People often seem to forget that. That is why it bothers me that negativity is constantly circulating in WhatsApp groups, for example. If I can ever call for something to be banned, that is it. Everyone drives each other crazy there with rumours and half-truths, which then take on a life of their own. That only causes unrest and agitation when it is not necessary."
And so, according to Christophe, all is not as bad as currently portrayed. "On top of that, the quality of potatoes this year is excellent. Underwater weight, starch content, and baking quality are generally very good. We just have to be careful not to get stuck in the negative story."
For more information:
Christophe Vermeulen
Belgapom
Tel: +32 (0) 9 339 12 52
[email protected]
www.belgapom.be