Belgian processors Agristo and Clarebout significantly increased the contract prices for raw materials for the production of french fries, which will be grown during the growing season of 2023, reports the portal Potatoes News.
At the end of last week, Agristo announced that it would pay 17 euros for 100 kg of Fontane potatoes shipped by sea. This contract price increases to 28 euros per 100 kg of eligible raw materials, which will be delivered in the first week of July 2024.
A few days later, Clarebout announced that the company would pay a contract price of €17,50 per 100 kg of Fontane at harvest time. Prices for Challenger and Innovator will increase to 2023 and 18 euros per 20 kg during the 100 harvest season, respectively.
At the end of the season, Clarebout plans to purchase Fontane potatoes at approximately 24,35 euros per 100 kg (deliveries in April 2024). For later deliveries, the price will increase to 27 euros.
positive signal
Christophe Vermeulen, CEO of the Belgian trading corporation Belgapom, noted that the increase in the cost of raw materials is a positive signal from potato processors. In his opinion, these steps on the part of enterprises reflect the understanding of the situation in which farmers find themselves (the costs of potato producers are growing rapidly).
In addition, according to Vermeulen, the initiative of Agristo and Clarebout is in line with the trend of increasing contract prices for other agricultural products. Among other things, he is referring to raw materials for the canning industry and the Belgian sugar refineries.
On the rise in the price of potatoes
Analysts at DCA-markt in Lelystad believe that the 40% increase in prices that Belgian processors are now realizing can be safely called historical. Last season, contract prices rose by about 15-20 percent.