But why does the price of potatoes continue to soar?

by time news

2023-11-27 11:42:43

In July, the kilo of ware potatoes crossed the threshold of two euros and remains above it in October. Several factors are behind this increase.

In fries, mashed potatoes, chips, or steamed, potatoes are a kitchen essential. Normally inexpensive, they can feed the whole family at a lower cost. “The whole world wants to eat it», notes the National Union of Potato Producers (UNPT). But in recent months, the price of fresh potatoes – sold on supermarket shelves – has continued to rise.

If, in January, a kilo was worth 1.67 euros in mainland France, it cost 2.06 euros last July, and 2.01 euros in October. This summer was the first time that ware potatoes crossed this symbolic threshold of two euros, according to INSEE data. If demand continues to increase, this is not the only factor which explains this increase in prices which extends over several months. “Last year, we emerged from a catastrophic French and European harvest», explains Geoffroy D’Evry, president of the UNPT. “The worst harvest in 30 years», agrees another specialist in the sector.

The cause is strong climatic variations which dried out then flooded the soil and damaged production. In addition to being a month late, “the volume was very bad», explains Philippe Fardel, president of Mousline. Thus, the market found itself extremely tense during the fall 2022 harvest, with stocks running out until the end of the first half of 2023. “In spring, prices were excessively high, between 500 and 600 euros per tonne of potatoes», Mentions the president of Mousline. Added to this is “a sudden increase in production costs, inputs, fuel oil and labor», adds Geoffroy d’Evry, who adds that “the market reacted to the law’s supply and demand».

“Quality has a cost”

This summer therefore represented a slow period for potatoes, with exceptionally low stocks and a new harvest only arriving this month. “Logically, the consumer price will fall» thanks to stock filling and renegotiations with distributors. “But the producer price must not be influenced», recalls the UNPT. Concretely, when purchasing a bag of potatoes, 20% of the price goes to the farmer, 50% to the distributor, 10% for taxes and 20% to traders.

On the industrial side, the rise in prices has not gone unnoticed either with a “potato market which exploded”, in addition to production costs, affirms Philippe Fardel. If contracts with farmers are negotiated each year around December, the last contract “at 50% inflation“. The manufacturer was therefore forced to apply a 10% increase on its products at the start of the year, or the equivalent of two cents per portion. He is now awaiting the next commercial renegotiations with distributors, in the hope of finding an agreement to increase prices and be able to absorb the increase in raw materials. For the UNPT, “it’s up to large retailers and traders to lower their margins».

«For years, potatoes had no real value, today quality has a cost», agrees Geoffroy d’Evry, who fears that producers’ remuneration will be revised downwards. These are also paid on the net tonnage, once all the misshapen potatoes have been removed. This French quality is one of the major criteria for export. Across the Atlantic, Americans even call potatoes “made in France” of the “dolls”, due to their smooth skin. France is thus one of the largest exporters, with one in two potatoes sent abroad, notably to Spain, Portugal, Italy and central Europe. “If mass distribution does not play the game, the majority of our potatoes will be exported.», Already warns Geoffroy d’Evry.

This year, France should produce 43.9 tonnes of potatoes per hectare, “enough to feed everyone», assures the UNPT. But concerns remain about the quality of the current harvest with “lots of unknowns». «Last year, the drought was fatal, then there was too much cold at the start of the year, too much rain and again drought this summer», explains the UNPT which adds that “producers rarely saw this“. It remains to be seen whether all the players will be able to agree in the coming weeks, in order to avoid consumers paying a high price for their potatoes.

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