The French National Union of Potato Producers (UNPT) wants the 2022 contracts to be “profitable” in order to “secure” the producers with a price increase of 30 to 40€/t.
Higher industrial demand for potatoes in 2022-2023
Even with the uncertainty of the Covid-19 pandemic still hanging over our heads, the demand for products processed from potatoes is back on track and manufacturers have resumed their development trajectory, in volumes and surface areas.
Potato production costs are much higher
Potato production costs, like those of other agricultural productions, have increased sharply in recent months and there is no telling what the situation will be in the spring when the potatoes will be planted: energy, fuel, fertilizers and consumables are reaching price increases of unprecedented levels.
Heightened competition between agricultural productions
In parallel, the price of agricultural productions (cereals, oilseeds…) has rarely been so high. This will lead producers to base their crop rotation on unusual parameters. The competition between the different crops will be intense. The increase in potato plots, which seemed likely to continue for several years, will be affected by this new situation.
2022 contracts: profitability and attractiveness expected for the producers in order to secure the sector
The contract conditions for 2022 are currently being revealed and they show increases that are not sufficient to make up for the higher costs expected in 2022 or the reduced contract prices in 2021 (despite the increase in production costs back then already). In line with the NEPG* press release from November 19th 2021, UNPT considers that these increases ought to be between +30 and +40 €/t in order to allow producers to respond positively to the questions and challenges ahead.
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