The Belgian potato market remains unsettled. Free market transactions are scarce, contract negotiations are ongoing, and exports are being refocused. Much is therefore being written, but the situation is certainly not as disastrous as is sometimes suggested, according to Christophe Vermeulen, CEO of Belgapom. "It is difficult, yes. But pretending that nobody earned anything and that the sector is on the verge of collapse is simply not true."
Barely trading, barely listing
© BelgapomThe situation on the free potato market is indeed very challenging, according to Christophe. "There is virtually no trade. Sometimes I really have to stretch the definition to be able to quote a price on Friday morning. Whether that will work this week, I honestly do not know, but I expect prices to fall further in the coming period. I do not expect any immediate improvement, at least not based on what I am hearing. Of course, things can change quickly in the potato sector. An export boom, a few large contracts. But the fact is that demand on the free market has been very low for quite some time."
What is still in storage now and not contracted could become a real surplus by the end of the storage season. "And then the question is: what do we do with it? Animal feed or biogas are options, but those solutions are limited, especially at a time when everything is expensive. Potatoes have never really been expensive, and still are not, but time and again you have to explain which type of potatoes are involved."
Contracts are simply honoured
What clearly frustrates Christophe, however, is the persistent idea that all growers are making massive losses. "People think that no grower earned anything from potatoes this season. That is absolutely untrue. All contracts are being honoured. About 80 per cent of the area has been contracted and contract prices for this season are still relatively firm."
According to him, with a healthy balance between contract and free market volumes, growers can still make a good living. "Of course, there are growers who have relied entirely on the free market. They are now in trouble. That is particularly painful, especially for smaller farms. But it is also part of the cycle of supply and demand in agriculture."
From good years to reality check
According to Christophe, the current turmoil fits into a broader cyclical pattern. "We have had many strong years. People seem to have forgotten that it can also turn the other way. In good times, growth seemed unstoppable. Even in years of poor harvests, we processed everything we could, sometimes too much, with a loss of quality, just to honour contracts and take in all the potatoes."
"Now, however, there is simply no additional demand. Yet in lean years, farming organisations immediately turn to politics. Suddenly, the entire system has to be rewritten in favour of the farmer. That is not how it works, and it can even come back to bite you. That sometimes concerns me. People constantly demand something from trade and industry, but cooperation on solutions often fails to materialise. Even within the trade association. I find that unfortunate."
"We have an extremely strong industry with a solid future, yet sometimes people behave as if everything has collapsed. It is time to face reality and look at what has been earned from this booming Belgian potato industry over the past 10 years."
Refocusing on export market
According to Christophe, there is indeed a certain reorientation taking place. "On the export front, we are on the defensive for the first time in years. Competition from Asia and Egypt, among others, is increasing. At the same time, there are also opportunities. With the Mercosur deal, Latin America could become an important market for us. In Brazil and Argentina, demand is rising steadily. They are also producing more themselves than a few years ago, but as total volumes grow, opportunities remain for high-quality Belgian products. Of course, we will have to see how Mercosur gets off the ground, if at all, and whether import duties on our products will gradually be reduced. We certainly hope so."
Belgapom is also looking with interest at potential additional trade agreements, despite setbacks related to U.S. import tariffs. "It has been stable with the United States for some time, but since the last quarter of last year, we have seen that the Trump administration's tariffs are having an effect. On the other hand, we will have to see what the new trade deal with India brings. I have also heard that the new trade deal with Australia may be revived. The EU is playing its role in protecting our exports, which is encouraging for the future."
"It is also important to remember that the European market remains stable and there is still structural growth. Global demand for frozen potato products, particularly chips, is growing by around 6 per cent per year. Those are substantial volumes." He says the key lies in restoring competitiveness. "We have the know-how, the network, and the quality, but our cost structure needs to be brought back under control."
Contract prices down
That need for cost recovery also explains the 17–20 per cent drop in proposed contract prices for the 2026/27 storage season. "That is a shock for growers, I understand that, but let us keep it in perspective. We are now going down 17 per cent, but between 2022 and 2025, prices increased by about 50 per cent. People forget that quickly. They now say nothing breaks even, which is not true, but within the industry, we are also dealing with high oil prices, high energy costs, and personnel costs that have risen by 20 per cent over three years. That is substantial."
Christophe also stresses that the decline does not mean there is surplus acreage. "We contract according to demand and hope we can clearly send the signal that this is not the year to expand acreage. That would not be good for anyone. Not for us, nor for the grower."
Call for common sense
Finally, Christophe calls for calm and realism. "The potatoes still have to go into the ground and still have to grow. Early season, storage season, six weeks of dry weather or six weeks of rain can make a world of difference. Nothing has been decided yet."
He acknowledges that strict contracting is causing unrest. "That is why we revised the code of conduct for potato contracts at the end of last year. Within Belgapom, we introduced clear deadlines so that growers and buyers know where they stand within a defined framework. That should help create clarity more quickly."
His message remains consistent: "We have a strong industry with a future. It is time to face reality, keep the bigger picture in mind and, above all, continue to apply common farmer sense."
For more information:
Christophe Vermeulen
Belgapom
Tel: +32 (0) 9 339 12 52
[email protected]
www.belgapom.be
