Belgian potato sector under pressure

Sentiment within the Belgian potato sector has shifted dramatically in just a few months. Until mid-February, confidence was running high, but concerns have since taken over. Nevertheless, expansions in cultivation and processing are continuing for the time being.

Free market potato prices plummet

Belgium’s 2024 potato production is estimated at 4.31 million tonnes, roughly in line with the five-year average. Of this total, 95% consisted of storage potatoes, 68% of which were contract potatoes.

Total sales fell by 6% compared to the five-year average by early February. Sales of free market potatoes dropped sharply, while the trade in contract potatoes increased. In February and March, free market prices were cut in half, from €300 to around €160 per tonne. As a result, potato processing volumes were more than 12% below the five-year average during that period.

Contracts under pressure due to market shifts

Since mid-February, growers have been facing unilateral cancellations or changes to cultivation contracts. Many farmers had already entered into financial commitments for the upcoming season, such as seasonal leases or the purchase of raw materials.

Four producer organisations have requested the FOD Economie to launch an investigation and mediate between growers, traders and processors. This is striking, as a code of conduct for drafting contracts had been established in previous years.

Sector invests despite challenging market

According to Christophe Vermeulen, CEO of Belgapom, the processing industry is adjusting to a changing supply and demand market. Expansion of acreage and processing capacity in Belgium has outpaced global demand growth. Looming import tariffs in the United States and increased production capacity in Asia are further complicating market conditions.

Despite this, companies such as Lutosa and Aviko continue to invest heavily in expansion. Belgium’s potato acreage is set to rise by 6% in 2025, reaching 106,000 hectares. According to Viaverda, high input costs, extreme weather conditions and climate regulations remain major challenges for Belgian potato growers.

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