Belgium, considered one of the world capitals of French fries, is facing an unexpected problem. Due to a record harvest, declining demand, and increased competition in the global market, farmers are unable to sell millions of tons of potatoes and are forced to dispose of them right in the fields.
Belgian potato producers are experiencing one of the most challenging periods in recent years. As reported by The New York Times, Europe has a surplus of about five million tons of potatoes intended for French fries production.
The situation is particularly acute in Belgium — the world's largest exporter of frozen French fries. The price of potatoes on the spot market has effectively remained at zero for several months. For comparison, three years ago, a ton of such potatoes cost nearly 600 euros.
Farmer Kris D’haeyere has been unsuccessfully trying to sell about a thousand tons of his harvest for several months. According to him, he couldn't find buyers even at a symbolic price of a few euros per ton. As a result, the potatoes had to be dumped back onto the fields, as this turned out to be the cheapest way to get rid of the surplus.
There are several reasons for the crisis. Favorable weather conditions have provided Europe with the largest potato harvest in the last eight years. However, at the same time, demand in the global market has decreased.
Additional pressure has come from trade restrictions, competition from Asian producers, and logistical challenges related to the unstable situation in the Middle East.
High energy and fertilizer costs remain a serious factor. The production of frozen French fries requires significant expenses for storage, cooling, processing, and transportation, making the industry particularly sensitive to rising costs.
Consumer habits are also changing. More and more buyers are opting for healthier food options, and in the U.S., the market is additionally influenced by popular weight loss drugs such as Ozempic and Wegovy. Experts estimate that global demand for frozen French fries continues to grow, but significantly slower than a few years ago.
Another problem for Belgian producers is the increasing competition from China, India, and Egypt. These countries are actively ramping up exports of frozen French fries and offering products at lower prices.
For Belgium, what is happening has not only economic but also cultural significance. French fries are considered part of the national identity of the country, and traditional fry stands remain one of the most recognizable features of Belgian cities.
Against the backdrop of the crisis, many farmers are already reducing their planting areas. Some producers are cutting their sowings several times, fearing that the market will not return to previous volumes and profitability.
The record harvest, which is usually considered a success for agriculture, has turned into serious losses for Belgian farmers this year. While the market tries to cope with the surplus of products, producers are forced to rethink their plans and prepare for the new realities of global trade.
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