Potato prices are low and farmers like Corné are now even handing out potatoes for free. But does that also make a bowl of fries cheaper? “No,” says Gea Bakker, Food & Agri sector manager at Rabobank.
The fact that the potato price is low does not mean that the sought-after golden snack is becoming cheaper. “The price of a bowl of fries is largely determined by labor costs, energy and the rent of the cafeteria. So the raw material potato hardly determines the price of your bowl of fries,” says Bakker.
According to her, that is less than five percent. “So you won’t see that reflected in the price. But it is also the case the other way around: if the potato price is very high, you will hardly notice it.”
Why is the potato so cheap now?
The low price for potatoes has several causes. “Potato prices have been very good in recent years,” Bakker explains. “That has resulted in more hectares of potatoes being grown this year.” The price has fallen due to the increased supply and less strong demand.
In addition, the weather played an important role. “We had a very good spring and summer. There were no diseases. The result: there are now more potatoes than necessary and that puts pressure on the price. According to Bakker, growers base their choices mainly on the results of previous years, which makes fluctuations difficult to predict.
What type of contract does the arable farmer have?
For arable farmers it also matters which type of contract they have. “Most arable farmers have potatoes on contract,” says Bakker. “There are also arable farmers who have some of the potatoes available. That is called the free market.”
“With this you look at the moment when you find the market suitable to sell your potatoes. But this year specifically, with extra potatoes in the market, you can no longer go anywhere with your free potatoes without a contract.”