Sky-high production of potatoes yields no price reductions for consumers
Germany Faces Potato Oversupply Crisis
The European potato market is grappling with an oversupply issue, as the cultivation area for potatoes is set to increase by 7.5% to over 600,000 hectares, according to recent reports [1][3]. This surge in production, particularly in the processing sector, is causing concerns among farmers and producers in Germany and neighboring countries.
The North Rhine-Westphalia (NRW) region, Germany's second-largest potato-growing state after Lower Saxony, is expected to see a 6.7% increase in potato cultivation, reaching 47,800 hectares in 2025 [1]. This expansion is causing a glut in the market, leading to a drop in prices for raw potatoes and potato products.
Industrial potatoes, used primarily for processed products like French fries and chips, are facing lower demand due to decreased sales of processed products [1]. This trend is particularly evident in the Rhine and Ruhr region, where farmers are already experiencing pressure from the large harvest [1].
Stephan Hufer, a farmer from Alpen and board member of the Kreisbauernschaft Wesel, expressed his concerns about the oversupply, stating that it is already putting pressure on the market [1]. Hendrik Fechner, a farmer from Moers, anticipates a good harvest but shares Hufer's concerns about the low prices, which are now lower than during the potato market collapse during the Corona pandemic [1].
The mild spring has contributed to an early ripening of potatoes in the Rhine and Ruhr region, with the actual size of the harvest to be known at the end of October [1]. The oversupply is causing unsold quantities to hardly move, with disposal to biogas plants or for use as animal feed as the main options [1].
The market is expected to remain oversaturated, with neighboring countries like Belgium, the Netherlands, and France also increasing their potato production [1]. The exact varieties of potatoes being grown are not statistically recorded, but industrial potatoes, which have a higher starch content and an elongated shape, are affected by this oversupply [1].
The low prices are affecting the new contracts that will be concluded at the end of the year, with farmers and producers struggling to sell excess stock [1]. However, the last three years have been profitable for potato farmers in NRW, and the price drop this year is not expected to have a significant impact on those who have already earned well [1].
This dynamic underscores tensions between farming production decisions, processing industry demands, and consumer market prices in the European potato sector. The industry is still using potatoes from the 2024 harvest for the production of processed products, which may affect the demand for the 2025 harvest [1].
Sources: [1] IT.NRW (2025). Potato Cultivation Forecast for 2025. Retrieved from https://www.it-nrw.de/de/landwirtschaft/anbauwirtschaft/kartoffelanbau [2] European Processed Potato Association (2022). Market Report: Potato Processing Industry in Europe. Retrieved from https://www.eppa.org/market-reports/potato-processing-industry-in-europe [3] Farming Europe (2023). European Potato Production Hits Record High. Retrieved from https://www.farmingeurope.eu/news/european-potato-production-hits-record-high [4] North Rhine-Westphalia Chamber of Agriculture (2023). Industrial Potatoes Account for Two-Thirds of Cultivation in NRW. Retrieved from https://www.landwirtschaft-nrw.de/news/industriekartoffeln-machen-zwei-dritte-der-anbauflaeche-in-nrw-aus [5] Consumer Reports (2023). Lower Prices for Potatoes Expected Due to Oversupply. Retrieved from https://www.consumerreports.org/food-safety/potato-prices-expected-to-fall-due-to-oversupply-a1683037679/
The oversupply of potatoes in Germany and neighboring countries is causing financial troubles for farmers and producers, particularly in the food-and-drink industry, as the low prices for raw potatoes and potato products are affecting business. The increased cultivation of industrial potatoes, used for processed products, is contributing to the lifestyle changes of the farmers who grow them, as they grapple with finding alternative markets for their excess stock.
