Spain: “Potato prices continue to fall in freefall with warehouses full and no sales”

After several favorable seasons marked by acceptable prices, a situation that even spurred a 15% increase in planted area, potato producers are now facing a difficult scenario that they describe as a "bad" year. This situation is evident in the commodity exchanges of the Castile and León region, where it is noted that "potato prices continue to plummet, with warehouses full and unsold. In some cases, potatoes are even being held in farmers’ trailers that cannot be unloaded, and farms are delaying their harvest due to lack of space," according to the León commodity exchange.

To understand this situation, several factors must be considered: oversupply, declining domestic consumption, and the lack of immediate exports. All of this has led to a market collapse that will result in significant losses for some farmers.

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“It’s a bad year, and there are unsold potatoes; things are very complicated,” confirms Eduardo Arroyo, president of the Potato Producers Association of Castile and León (Appacyl) in northern Castile. He emphasizes the need to update the sector’s situation and consider restructuring for the next season. He also reiterates the importance of having contracts in place before planting begins: “We must ensure we sell the potatoes before starting cultivation, as it’s an expensive crop to plant, costing around €10,000 per hectare.” Therefore, he insists that, to offset this cost, the first step is guaranteeing sales. He also explains that “some contracts have been reduced, and contracts are being executed in France—they go first, and then if there’s anything left over, they look here, but they aren’t buying.”

Regarding the potato acreage projected for the next season, Arroyo anticipates a similar decrease to the increase seen this year: “We’ll go back to where we started; some new farmers who have joined the sector, many of whom came from sugar beets, will probably abandon potato cultivation.” In any case, he insists that the sector must make strategic decisions to recover from the critical situation it is currently facing.