Europe: The impact of frozen french fries is causing a decrease in prices in Europe.

The price of potatoes at the farm gate has fallen significantly, and although it may seem surprising, frozen potatoes for frying are partly to blame. In the context of this popular tuber, the influence of major agricultural powers like the United States and China cannot be ignored. This affects not only the reputation of an iconic dish like the Spanish omelet, but above all, the farmers who depend economically on this crop, especially in regions like A Limia, where the potato is a cornerstone of the local economy.

Although prices haven’t reached the historic lows of 2004, when farmers received a mere 4 euro cents per kilo (equivalent to 6.5 cents adjusted for inflation today), current prices remain alarmingly low. According to data from January 14th, at the León Commodity Exchange, the Agria variety was trading at 120 euros per ton (12 cents per kilo) and Kennebec at 130 euros per ton (13 cents per kilo). However, on January 20th, an online supermarket showed a retail price of 1.49 euros per kilo for the Agria variety and 1.65 euros for the white, prime-sized varieties.

The problem lies in the fact that Central Europe has seen abundant production, resulting in even lower prices than those offered to local farmers. According to Eloy Manso, a farmer from A Limia and member of Agrimanso S., the surplus has led to potatoes arriving in Spain at prices lower than those paid domestically.

So what role do frozen potatoes for frying play in this context? One of the key factors has been the excellent harvest in countries like Germany, Belgium, France, and the Netherlands. In Galicia, although the harvest was small, it was of high quality in terms of organoleptic properties and size. However, Central European potatoes have flooded the market after failing to find the same international outlets they used to. This has been exacerbated because these countries have seen their exports of frozen potatoes for frying reduced for various reasons.

A November report by the North Western European Potato Growers Foundation (NEPG) details how the early harvest benefited from favorable weather conditions, a 7% increase in planted hectares, a 5% rise in productivity, and adequate rainfall. All of this contributed to a 10% increase in production in the main producing countries.

The report also points to another key factor: the contraction of the global market for frozen fries. This is compounded by tariffs imposed by the US administration, the strengthening of the euro against the dollar, and increasing competition from emerging markets such as China, India, Egypt, and Türkiye.

To provide some context, over the past two years, exports of frozen french fries from China and India have grown by 10%, reaching 500,000 tons shipped to neighboring countries. Meanwhile, exports from the European Union have been declining over the same period.