Europe faces a record potato surplus that is putting pressure on prices and the market

The European potato market is under pressure due to a significant surplus that, in some cases, is forcing growers to pay to market their product, according to DCA Market Intelligence. The large supply has led to weak demand, and neither low prices nor free distribution have been enough to reduce stocks.

Farmers in the Netherlands and their counterparts in Belgium, Germany, and France have significantly expanded potato acreage over the past two years, driven by strong demand and favorable contract prices from the processing industry. Favorable growing conditions resulted in high yields in 2025 and, consequently, a large harvest.

However, potato demand has clearly weakened. Increased competition from Asia, tariffs in the United States, and a weaker dollar have put pressure on the export position of European producers, creating a structural surplus.
 

Prices under pressure

Prices reflect this situation. PotatoNL recently quoted between EUR -1.00 and EUR -2.00 per 100 kilos for potatoes destined for animal feed, while prices for processing potatoes are only slightly higher.

The surplus is shifting volumes toward animal feed and biofermentation, with marketing costs increasingly falling on growers, partly due to higher transport costs.
 

Time pressure ahead of the new harvest

Although potatoes can technically be stored for long periods, their economic viability is declining. With no prospects for price recovery, growers are choosing to reduce storage costs and sell earlier.

Niels van der Boom, potato market specialist at DCA Market Intelligence:

"Not everyone can store potatoes for that long. Moreover, there is currently no prospect of market improvement. Therefore, growers are deciding to stop incurring refrigeration costs."

As a result, larger volumes are entering the market more quickly, while storage space is needed for the new crop.

Surpluses in the Netherlands and neighboring countries are significant. In 2025, the Netherlands produced around 4.2 million tonnes of consumption potatoes, about 900,000 tonnes more than the previous year. Some of this volume has already been diverted to animal feed, fermentation, or starch processing, but an estimated 500,000 to 600,000 tonnes still remain.

Other countries are also facing large surpluses. In Belgium, around 800,000 tonnes remain in storage without a buyer; in France, the surplus is estimated at 1 million tonnes; and a similar volume is expected in Germany. According to DCA Market Intelligence estimates (2025), the total surplus across the EU-4 is approximately 3.3 million tonnes.
 

Promotional campaigns

In Belgium, promotional campaigns are being launched to channel potatoes into food consumption, animal feed, or biogas production. In France, GIPT and Arvalis are working on a controlled destruction protocol to reduce sanitary risks.

In the Netherlands, the issue has been discussed, but no concrete measures have yet been implemented. Given the scale of the surplus, broader initiatives are needed to create sufficient space ahead of the next harvest.

The current situation highlights the need for market players to adjust production, contracting, and marketing strategies in response to structurally changing market dynamics.