In a press release issued on October 15th, the French National Union of Potato Producers (UNPT) called for caution and strategic thinking on the part of French producers. Increasing acreage without corresponding demand could lead to oversupply, with direct consequences for prices and market stability. The French potato sector must develop in a controlled manner."
"Rapid expansion requires vigilance to preserve the balance of our sector."
The recent increase of more than 7% in the area under ware potatoes in 2024 bears witness to the growing appeal of our sector, which is the fruit of years of development work, opening up new prospects for all producers.
But this rapid expansion, both in France and in Europe, means that we need to be particularly vigilant to maintain the balance of our sector across all outlets (fresh, processing, starch). The encouraging announcements concerning the opening of processing plants in France, forecasting an additional demand of more than 40,000 hectares by 2030, are indeed promising. However, it is important to remember that not all of these facilities are yet operational or even built!
"The importance of a considered approach" before embarking on potato production
Faced with the current challenges of the cereals market and the economic problems facing the farming world in general, many people are considering potatoes as a viable economic alternative. UNPT supports these diversification initiatives, while firmly emphasizing the importance of a considered and prepared approach to getting started. Potatoes require healthy, solid cash flow, substantial investment, technical expertise and cold storage capacity to manage volumes and avoid sales at the end of the field below production costs. In addition, increasingly extreme weather conditions are having a major impact on the profitability of the plant, as with the terrible drought in 2022, or the excess humidity and unharvested plots in 2023.
The risk of oversupply
A precipitous increase in acreage without corresponding immediate demand could potentially lead to oversupply as early as the next marketing year, with direct consequences for prices and market stability for several years to come. There is no doubt that such a situation would jeopardize the financial profitability of many potato farms, both new and well-established.
This is where collective management and sector structuring play a fundamental role. Organizing producers not only makes it possible to collectively secure the production framework with processors and ensure that the contractual security negotiated within the sector is applied, but also to better adjust the volumes produced in line with real market needs. In particular, UNPT is sending this message to producers supplying Belgian fry factories that have recently set up in France and do not yet have associated groups: you are at the heart of this dynamic and the importance of a collective strategy cannot be underestimated. By organizing yourselves into groups, you will protect both your income and the overall stability of the sector. UNPT is there to support you, especially if certain players are determined to dissuade you.
The French potato sector has real potential for development, but this development must be controlled. UNPT is there to support producers and guide them through this process. Together, we can build a sustainable future for our sector, based on reasoned choices and collective management of our development, a development that is resolutely in the hands of farmers.
For more information:
UNPT
unpt.fr/