The ongoing conflict and associated cost increases are influencing planting decisions for EU potato growers ahead of the 2026/27 season, according to market sources.
With spring planting underway, growers and processors are assessing the impact of current market conditions, including oversupply and declining demand. Growers are expected to face higher fuel and fertiliser costs, according to World Potato Markets.
Following the start of U.S. and Israeli military action in Iran at the end of February, the price of Brent crude rose from about US$72 per barrel to US$118 per barrel by the end of March. After the announcement of a ceasefire, prices declined but remain volatile. At the time of writing, prices are around US$95 per barrel.
Natural gas prices in Europe also increased, with prices at the end of March up about 79 per cent month-on-month. Prices have since declined but remain elevated. This has led to higher storage and processing costs due to rising electricity prices, as electricity generation in the EU relies heavily on natural gas.
Loss of access to Gulf markets is another factor affecting the sector, as the region represents an export destination for EU producers.
Market sources have previously reported to Expana that rising input costs could influence participation in the upcoming season, particularly in the context of an oversupplied market.
With uncertainty continuing, sources indicate that growers are adopting a cautious approach to planting for the 2026/27 season. Speaking to Expana, sources state that amid the current market situation, growers have been cautious, and "increasing growing costs just add to that."
Planted volumes for the next season remain a key factor for the market. To reduce oversupply, market participants have called for a reduction in acreage, although there are doubts about whether this will be achieved.
According to World Potato Markets, "With large volumes of lower-priced seed available and favorable conditions, growers may be tempted to plant larger areas than they anticipated, but the higher cost of inputs, reduced contract prices, and areas are likely to dissuade them. Another season of rock bottom free-buy potatoes and lower contract prices would be disastrous for growers and their businesses."
Source: Mintec/Expana
