Top Potato Harvest - But Consumers See Little Benefit - German potato farmers struggle as record harvests crash prices amid global competition
Potato farmers in northern Germany are facing a challenging season. A bumper harvest and increased competition in the global market have led to a significant drop in producer prices. Farmers are currently earning just over €10 for 100 kilograms of potatoes, while consumers pay over €1.50 per kilogram.
The surge in production, with the potato-growing area increasing by nearly 7% last year and this year's harvest up by more than 5%, has resulted in oversupply. This glut has pushed down prices, with farmers struggling to sell their produce at a profit.
Farmers cultivate potatoes by variety, each suited for specific uses such as table potatoes, processing, starch, or seed. However, even with careful planning, delivery volumes for certain varieties may not be agreed upon, leaving some potatoes without buyers in a good harvest year. Unsold potatoes may end up in biogas plants, as animal feed, or in rare cases, be left in the field, due to storage costs and limited shelf life. Leaving potatoes unharvested is not common due to the risk of disease spread.
Germany's potato exports face stiff competition from new players like China and India in the global frozen fries market. This increased competition, coupled with the domestic oversupply, has put further pressure on farmer's earnings.
The current potato market in Germany is challenging for farmers, with oversupply and increased competition driving down producer prices. Despite this, farmers continue to cultivate potatoes, with the potato-growing area increasing last year and this year's harvest also up. Consumers, however, continue to pay higher prices for potatoes, highlighting the stark contrast between farm gate and retail prices.
