New potato contract causes discomfort among farmers

Before the turn of the year, many arable farmers ensured that they would sign the potato contract immediately. This was despite a price drop of around 20% or €4 per 100 kilograms. Now that the details of the contracts are slowly but surely coming to light, some hesitation is beginning to emerge. A few are openly expressing that they are feeling stomach pains from the new contract proposals. The POC urged potato growers at the beginning of this week once again not to blindly sign the contract proposals. The processing industry always aims for the lowest possible price, as this benefits their returns, emphasized POC chairman Jasper Roubos. Especially in situations where supply is sufficient and prices are under pressure, it is important that growers realize what their cost price is and at what price they want to sell potatoes under contract, according to him. Roubos stated: We are not talking about the free market with daily prices, but about conscious choices to make agreements early on about a crop that is yet to start. If you are already settling for a contract price that is below or just above cost price, then I believe you are not on the right track. Cost price calculator The POC has developed a cost price calculator in collaboration with accounting firms and advisors. And now that the contract prices are being published, potato growers are being reminded of this yet again. The question is to what extent growers are sensitive to this at the moment. Some growers have firmly resolved to cultivate the same area of potatoes as last year. And they are also trying to maintain the contracted area. This is to cover the cultivation costs as much as possible, thus reducing their risk. Lower prices are one side of contract cultivation, but on the other hand, you also know what you are getting into. Despite or maybe because of that last point, there is also a group of growers where a reduction in cultivation is increasingly starting to bubble up. Why spend so much money on rent if you can sense that the area is once again too large? Of course, anything can happen during the season, but the fear of another year like that is significant. And certainly not without reason. Needed reduction of 15% To get the potato market healthy again, a reduction of 15% is needed, it has been suggested for months. However, the chance that such a reduction will be implemented is small, and the farmers are aware of this. Hence, some potato growers are cautiously pulling the handbrake. They may just plant fewer potatoes to save some costs on the expense side. The news of the new contract proposals is trickling in. And the doubters see it as confirmation of their intention to grow fewer potatoes. Less money and stricter conditions are certainly not boosting their confidence in the upcoming potato year. Stricter standards for baking color and a requirement to deliver a comparable variety in case of a shortfall. Contract volumes that are based on the loyalty of the grower to the buyer. And other conditions have also been tightened, such as seed potato purchases, discounts based on transport distance, and size specifications for the potatoes. In short, the conditions for 2026 are more stringent and described in greater detail. Legally and operationally, the rules are stricter than last year. This applies, for example, to the responsibility in the event of damage, crop failure, and crop registration. There are also clearer provisions regarding date usage.