The potato market needs regulating

The Binjte, which is the most widely cultivated potato variety in Belgium, has recently reached 300 euros a tonne on the Belgian commodities market, which is double its price a year ago.

The main cause of this dramatic price increase is the drop in production in most EU countries: the CNIPT, Comité national interprofessionnel de la pomme de terre (French committee of potato professionals) has registered a decline of 21% for Germany, 16% for Belgium and Holland and 8% for France. The total EU harvest for 2005-2006 was 60.5 million tonnes (down 8% compared to 2004-2005), which was the smallest harvest in 25 years.

Moreover, global demand has been rising steadily, due in particular to changing eating habits in emerging countries, but also in developing countries. Therefore China is forced to import 70% of its transformed potato products even though it is the world leader in tubers with 74 million tonnes harvested in 2005 and the land dedicated to the cultivation of potatoes has increased by 50%. Today more and more Chinese enjoy fries and crisps served in fast food restaurants and American chains. At the same time French eating habits are changing too. After having declined significantly due to improved standards of living and health concerns between 1960 and 1990, the consumption of potatoes has been gaining ground again over the last few years. The availability of new “early” varieties with low levels of carbohydrates is one reason.

The equation is therefore simple: supply is down and demand is up, naturally causing a sharp increase in prices along with fluctuations due to changing consumer habits.

The combination of these factors illustrates the necessity of implementing world governance for agriculture in order to regulate international markets and improve the way they function.