European potato industry faces shortages and rising prices due to drought

The potato processing industry is facing a significant reduction in raw material availability due to extreme drought and shrinking cultivation areas. Horst-Peter Karos, Managing Director of the BOGK industry association, reported that recent heatwaves with temperatures reaching 40 degrees Celsius have caused irreparable growth damage to potato crops. Because potatoes are shallow-rooted plants, they are highly susceptible to insufficient rainfall.

In addition to weather-related damage, Germany has seen a 7% reduction in potato cultivation area, with some parts of Europe experiencing double-digit declines. This supply shortage is particularly acute for larger tubers required for French fries production.

Market prices are already reflecting these shortages. In the Netherlands, Germany, and Belgium, prices for Category I industrial potatoes rose by 6.50 euros per 100 kilograms compared to the previous week, with current listings ranging between 15 and 23 euros per 100 kilograms. Category II potatoes, used for fresh-cut fries, saw an average increase of 5 euros per 100 kilograms. Export prices in the Netherlands have climbed to between 25 and 28 euros per 100 kilograms as processors across Europe seek suitable stock.