Some bright spots in an otherwise gloomy market

Where the export supply of onions is running smoothly, the same cannot be said for potatoes. From the very first early fryer potatoes, processors are pushing the supply ahead of them. The strike at the Belgian Clarebout is not making things any easier. It remains a gloomy situation, although there are some bright spots in the form of Agria's and Innovators. There are too many potatoes, the sales of fries are not improving, and there are import duties and exchange rates that hinder progress. In short, there are numerous challenges. The result is a free market that is stagnating. Only a few varieties can escape the malaise. For Agria and Innovator, there is still something to be gleaned from the market. Agria's benefit from small-scale sales to peeling companies and exports to Southern Europe. Innovator can rely on sustained demand from fast-food chains. The latter may yield even more, as there are not many Innovators available. The yields of the variety are somewhat lagging, which may still provide some opportunities. Quotation of Innovator in France In France, RNM has established an initial quotation for Innovators. It is still only €3 per ton, but it's a start. In Germany, things are moving a bit faster. Reka-Rheinland made an effort at the end of September to stimulate the market with an initial quotation of €4 for Innovator. The market has somewhat stabilized at that price, as evidenced by this week's quotation. The price development of Agria shows a somewhat more favorable trend, although the lower end of the quotation at PotatoNL decreased slightly this week. For now, suppliers must contend with prices ranging from €5 to €10 per 100 kilos. Reka-Rheinland is sitting in between with €7 per 100 kilos. Processors are not eager to absorb the excess supply of potatoes. The sluggish market was already a reason for Agristo to suspend its investment plans for a new factory in France. But even in daily operations, there are bottlenecks. Occasionally, factories lie idle, causing more trouble in the market. In Belgium, this was compounded by a strike at Clarebout. Since last Thursday, there has been a strike at the facilities in Nieuwkerke, Waasten, Moeskroen, and Dunkirk in France. This means a significant blow to processing capacity in Belgium and France. For a long time, employer Clarebout and the unions were entrenched, but after a week, there was finally a reconciliation meeting on Thursday evening. Reconciliation temporarily fails Under the leadership of a neutral chair, both parties were given the opportunity to vent their frustrations. For five hours, they listened to each other. There was mutual respect. Yet, no solution came. There was a small opening due to a slightly adjusted proposal from Clarebout, but that too was summarily dismissed. The problem is that the 3,000 employees also want to benefit from the billions that owner Jan Clarebout is collecting from the sale to the American food giant Simplot. They believe they have helped make the company great. Even during the corona period, they contributed. And that, according to them, should be recognized. A gesture of €500 as a bonus is not perceived by employees as adequate recognition. A second attempt with a slightly higher bonus for employees who have been with the company for more than ten years (€750 from ten years and €1,000 from twenty years) also did not succeed. Most people have not been here for ten years, and in the last six to seven years, the company has seen the most significant growth, the unions explain. For them, the offer does not change, so Clarebout should have known that this would not be accepted. This brings both parties back to square one, and the strike continues. It is a strike of a scale never seen before in potato processing. And thus, there is also much damage, especially to deliveries from the fields. How much time is left to recover from this? The longer the strike lasts, the harder it becomes. And it comes in a market that is already unbelievably sluggish. For now, there is no end date for the actions at the four factories. Belgapom shares in the malaise. After an initial quotation last week, this week's overview from Belgapom remains eerily empty. No quotation due to lack of transactions, is the simple comment below. No delay at Ecofrost After gloomy reports from processors in Belgium, the response from fry manufacturer Ecofrost is one of hope. From our side, there is no delay, the processor responds to the suspension of investments in fry production at Agristo. The cold storage is already operational, the packaging lines have been running since early September, and the production lines are set to start as planned in the first quarter of 2026. The automated storage should be operational by the end of 2026. There is only one way forward!