Farm-gate potato prices in Spain have declined, with global trade dynamics in frozen potatoes for frying contributing to the situation. The impact is being felt most clearly in producing regions such as A Limia, where potatoes play a central role in the local agricultural economy.
Although current prices remain above historic lows, they are still under pressure. In 2004, farmers received about €0.04 per kilogram for potatoes, equivalent to roughly US$0.07 per kilogram when adjusted for inflation today. According to data from January 14, the León Commodity Exchange quoted the Agria variety at €120 per ton, or about US$130 per ton, and Kennebec at €130 per ton, or about US$140 per ton. By contrast, on January 20, an online supermarket listed retail prices at €1.49 per kilogram for Agria and €1.65 per kilogram for white, prime-sized varieties, equivalent to approximately US$1.60 and US$1.78 per kilogram.
Producers point to oversupply in Central Europe as a major factor behind the weak price environment. According to Eloy Manso, a farmer from A Limia and member of Agrimanso S., potatoes are entering the Spanish market at prices lower than those paid to domestic growers, adding further pressure at origin.
The situation is linked to production levels and trade in processed potato products. Countries such as Germany, Belgium, France, and the Netherlands recorded strong harvests. While Galicia's production volume was limited, quality in terms of size and eating characteristics was reported as high. At the same time, Central European potatoes that previously moved into export channels have remained on the internal market, increasing supply.
This shift has been reinforced by weaker international demand for frozen potatoes for frying. Several European exporters have seen reduced shipments of frozen fries, leading to more fresh potatoes remaining within the region. A November report by the North Western European Potato Growers Foundation noted that early harvests benefited from favourable weather, a 7 per cent increase in planted area, a 5 per cent rise in productivity, and sufficient rainfall. Together, these factors led to a 10 per cent increase in production across the main producing countries.
The report also highlighted reduced global demand for frozen fries, influenced by trade measures imposed by the United States administration, a stronger euro relative to the US dollar, and increased competition from suppliers such as China, India, Egypt, and Türkiye.
Over the past two years, exports of frozen french fries from China and India increased by 10 per cent, reaching around 500,000 tons shipped mainly to neighbouring markets. During the same period, exports from the European Union declined, further weakening price formation for potatoes within the bloc.
These combined factors continue to weigh on farm-gate prices in Spain, despite strong consumer prices at the retail level.
Source: lavozdegalicia.es / Argenpapa
