French fry factory buys out batches of contract potatoes

The Northwest European market for free potatoes is slowly but surely getting underway. Meanwhile, potato contracts with farmers are being bought out here and there, because those potatoes are not needed. Belgapom records for the first time this week. For Fontane and Challenger, the first quote of this season has been set at €15. Unfortunately for the grower, this price is per ton and not per 100 kilos. On the other hand, the first quote is finally a start after weeks of deafening silence in the market. Belgapom starts this week for the main harvest at the same level as where trade in early potatoes ended. The last quote for early potatoes dates back to August 8. Even then, the price was stuck at €15 per ton. Two weeks earlier, the season started with a price of €50 per ton. Reka-Rheinland was the first batch to reignite the fire in the potato market two weeks ago. It was just a small flame, nothing more, but it indicated that there is once again some activity in the potato market. Later, PotatoNL also followed with quotes for Agria's intended for export to Southern Europe to make fresh fries. The German producer association is heating the fire a bit more this week. The quote for Agria's is increased by €2 to €7 per 100 kilos. Innovators remain unchanged at €4 per 100 kilos. The increase in quotes is also reflected in rising minimum daily prices for members of Reka. The minimum daily price for Agria rises to €5 per 100 kilos, while the minimum price for Innovator is €3.50. Buying out contract potatoesWhile on one hand, the market for free potatoes is starting to pick up, there are also some issues with contract potatoes. There are factories that, due to marketing problems - it is said - are being shut down from time to time, and therefore those companies cannot use all the contract potatoes. Contracts are being bought out here and there. The buyer tries to align the supply with the needs in this way. The intention is that the grower keeps the potatoes for a few cents less than the contract price. By selling the potatoes elsewhere, the grower ultimately receives the same price as the contract price. Postponement of new factoriesThe postponement of construction plans for new fry factories also indicates that the market is currently more difficult than anticipated. Agristo was supposed to start building a large factory on the site of the former sugar factory of the French concern Tereos. Those plans are now going into the fridge for three years at the last moment. Not until 20230 will the first fries be made there. Strike at ClareboutAt the Belgian Clarebout, unions have started a major strike. They want the staff to also benefit from the sale of the company to the American Simplot. The unions say they will continue their action until they get their way. Clarebout has canceled all deliveries for this weekend in response, and there will also be no supply at the factories in Nieuwkerke, Waasten, and Duinkerken on Monday.