The situation on the Belgian potato market remains unchanged. Several months ago, there were already fears from Jan Van Luchene of Bruwier Potatoes that there would be little perspective if crazy things did not happen with this year's harvest, but these extremes have indeed remained absent. "The harvest was actually very good, which would normally lead to joy, of course, but now to chagrin. In fact, the industry is still facing the same challenges as it did in the last eight months."
"The industry is struggling with large stocks of fries and difficult sales, while at the same time, there is a vast area of high yields available that were not needed this year," he continues. "This makes the situation complex for all involved. Growers, traders, and processors. So the problem is no longer just with the industry, but with the entire sector."
He therefore does not see supermarket promotions as a solution to encourage consumption. "That will have little effect. The combination of a large shortage of sales and the large volumes of new potatoes leads to a free market that will remain under pressure until the end of the season. I also expect these potatoes to remain in use at least until the end of July and possibly August, so relief is not really in sight either."
Decisive action
So will this pressure continue in the coming years? "That's hard to say, as new contracts are likely to result in significant reductions in both price and tonnage. It is actually important that the industry intervenes immediately and decisively so that next season is not another full year lost. In addition, the industry will have to shrink in contract tonnage to rebalance the market. Acreage is likely to be cut, with many new growers who entered this season possibly dropping out of the market. Only there is then uncertainty about what happens to vacant farmland afterwards. There is a chance that it will be offered more cheaply, with some growers still deciding to enter, even though the sector does not need it."
New balance
"Quality is a way to face competition, and that is where Europe is still the measure of things, but price control remains inevitable," Jan explains. "The previous success of the past three years is over. The market continues to grow, but is increasingly determined internationally. Global competition has increased, with countries such as China and India taking a larger share of the Asian market and set to play a continuing role in the medium term. Expansion plans by the Belgian industry, among others, which were on the table last year, are a thing of the past for a while. A new balance will have to be found, and it is important that the industry acts quickly and decisively to achieve it. Clearly, the sector needs to prepare for further challenges. Restoring balance in production, price, and marketing will be crucial to ensure the continuity of the Western European potato and fries market at both national and international levels."
For more information:
Jan Van Luchene
Bruwier Potatoes
Galgestraat 1A
B-8790 Waregem, Belgium
Tel: +32 56 61 33 33
[email protected]
www.bruwier.be
