Agristo contract price decreases less when stored longer

As the first of the major potato processors in the EU-4, the Belgian Agristo has presented its contract prices. In December, an average discount of €4 was already communicated to growers. Depending on the delivery period, the price reduction compared to last season is slightly smaller at times and slightly larger at others. This is the case in week 17 for example. Storing longer continues to pay off. As the only potato processor, Agristo made statements early December about their strategy for the potato season 2026-2027, to give growers the opportunity to adjust their cropping plans in a timely manner. Since this week, account managers have started visiting growers with the contract prices. For the first time in 4 years, the contract prices have taken a clear step back due to an overproduction of potatoes and reduced sales of the end produce. Differences in from field delivery Agristo will start processing the new crop in week 31 (late July). From field delivery of the main crop will start in week 38. Fontane starts at €13.50 per 100 kilos and Innovator comes in at €15.50. Those who deliver the potatoes dry and cleaned from the shed will receive €0.50 more that week. Last year we started with this distinction and it has paid off positively, says Agro Director Stefanie Dumortier. Many growers made the effort to deliver their potatoes free of soil. The price discount has only been applied in exceptional cases. Those who load from the field in November or from an 'outside silo', and deliver more than 10% soil tare, will be paid at the field contract prices from October. In week 17, the company will pay €22.80 for Fontane and €25.30 for Innovator. In week 26, that will be €25.90 for Fontane. Contracting for Innovator runs until a maximum of week 23. That is two weeks longer than is currently the case. It was previously announced that the seed potato prices are also declining, by an average of about €300 per hectare. This decline is, according to the company, in line with the contract price reduction. Largest reduction in week 17 The price reduction compared to last year amounts to €3.50 or €4.00 in the from field segment, depending on whether the crop is delivered dry and cleaned or not. In week 17, the price reduction is €4.40. In the first week of July, the discount for Fontane is €3.70. Prices of €30 or more are no longer present in the price table. The highest prices are achieved with Innovator and Markies, for which a maximum of €27.50 is paid. From May, the price decline decreases to 12% to motivate growers to store for longer using mechanical cooling. The mentioned prices are all from the grower and exclusive of VAT. There are no premiums or surcharges anymore. Agristo works solely with fixed price contracts at set tonnages rather than contracts based on hectares grown. For the coming season, the company is contracting an average of 20% fewer tons at the fixed price. This is to bring back the balance between area and demand after two years of substantial expansion in Europe. The ultimate shrinkage may differ per grower. It is dependent on the quality, delivery history, and the location to the factory. Transport distance Agristo will not work with a generic discount for transport over longer distances. We focus on growers closer to our factories. Growers who are very far from the factory will receive a discount, Dumortier said when asked. These are usually growers with whom we are downsizing our relationship. These are mainly companies in Germany. This discount is not a change in strategy but has been applicable for years. Also for regions in, for example, France. According to the company, the price reductions mean that growers should expect €1,600 less income per hectare with 40 tons in the coming season. With the reduction in price and area, it is hoped that the cost price can also be reduced broadly. For example, with a reduction in land lease prices for potatoes. Agristo observes globally that 2.5% more fries are consumed, but that the Western European frying sector needs to make an effort to become competitive again.