Report: European potato market under ‘severe pressure'
The firm has said that the EU potato area is increasing by 77,000ha to a total of 1.47 million hectares, an increase of 5.5%.
It claims that the expansion comes while European exports of French fries, and other frozen potato products, are facing significant challenges.
DCA has warned that the potential overproduction of processing potatoes could push the current market 'further out of balance'.
The Dutch firm said that Germany, France, The Netherlands, and Belgium – the largest potato-growing countries on the European mainland – now cultivate more than 600,000ha of processing potatoes, a 7.5% increase compared to last year.
DCA believes the growth is exceptionally large, and stands out as a considerable portion of the additional area is being grown 'without contracts'.
It said that farmers, when planning crops last winter, anticipated strong demand and maximised contract options with processors.
However, the open market has since collapsed, and processors have scaled back their contract volumes.
According to DCA, the harvest could reach over 25 million tonnes, based on average yields.
It said that while drought in parts of Europe will likely prevent a record crop, the balance between supply and demand remains under extreme pressure.
DCA
As a result of the pressure to the potato processing industry, the European fries industry is in a 'difficult position', the DCA stated.
There is competition for the sector from other countries, such as India, China, and Egypt, who are capturing market share in Asia and the Middle East through lower costs and improving product quality.
According to DCA, Europe is struggling to 'keep up' with the price pressure.
In The Netherlands, the contract price for potatoes now accounts for about 40% of the current trade price for French fries. This has led to processors trying to cut costs, while labour and energy prices remain expensive.
The DCA found that global demand for French fries continues to rise, but Europe is playing a 'diminishing' role in the growth.
A combination of high production costs, mounting competition from low-cost countries, and a surplus of potatoes is putting pressure on the margins of both processors and grower.
DCA believes that French fries will remain widely available, but price drops at northwest European supermarkets or fast-food outlets are unlikely.
A spokesperson for DCA told Agriland that all data was collected from various official sources such as Eurostat, and the European Commission, and that calculations were made by the firm's analyst.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
29 minutes ago
- Irish Examiner
What the proposed CAP changes mean for Irish farmers
The proposed EU budget post-2027 has caused waves in the agricultural sphere, with calls to action and pushback coming from all angles. The main worry is the proposed absorption of the CAP under the National and Regional Partnerships Plans (NRPP). The European Commission advertises this move to be more efficient and have a stronger, impactful use of EU funding with agricultural policy 'at its core'. Concerns have been raised revolving around whether money normally allocated to the CAP will be redirected and funnelled into other sections of the NRPP. Initially proposed for the NRPP is €865bn within the 2028-2034 EU budget. Billy Kelleher, MEP for Ireland South, said: 'The 21% cut in CAP funding will cause havoc among farm families in Ireland and across the [European] Union.' Another concern within the proposal is that the income support of €300bn ringfenced for EU farmers post 2027. This is a drop from the €387bn previously set aside for farmers within the current budget. This would mean the nearly 120,000 farmers who avail of EU-funded supports such as Basic Income Support for Sustainability (BISS) or Complimentary Redistributive Income Support for Sustainability (CRISS) could experience drops in the amount they receive. Billy Kelleher, MEP for Ireland South, said: The 21% cut in CAP funding will cause havoc among farm families in Ireland and across the [European] Union… "Perhaps it's a negotiating tactic to force member states to increase their national contributions or to agree on new own resources. Either way, it will make farmers deeply worried about their future viability,' said . According to the 2024 National Farm Survey conducted by Teagasc, direct payments amounted to 60% contribution to a family farm income in 2024 across the sectors examined (dairy, cattle rearing, cattle other, sheep, and tillage). This cut will have significant effects on farming families' incomes and livelihoods if a ringfence of €300bn is agreed. A 'Unity Safety Net' of €900m per year of the budget — a total of €6.3bn — is proposed for emergencies within the sector. This is meant to help ensure stable markets and to assist in times of crisis such as extreme weather events, geopolitical situations or persistent structural challenges for EU-based farmers. With the proposals of a single 'rule book', streamlined payments and a young and new farmers' 'starter pack' for targeted supports could benefit small enterprise farmers and young farmers entering or inheriting within the industry, reducing administrative burdens and offering lump sums. Overview is vague on eco schemes Notably vague within the proposal overview made public by the EU Commission was any mention of farming sustainability and eco schemes. Mentions of sustainability schemes and practices were made with no clear outline or budget proposed. In contrast, a leaked document that was circulated before the initial official proposal made several mentions of eco and sustainability schemes with recommendations to enhance these and similar areas for farmers to receive support based on uptake of beneficial practices. Areas outlined in this leaked document suggested support be provided for farmers or individuals who commit to climate change adaptations, climate change mitigations, soil health, preservation of biodiversity, and development of organic farming. Ireland's presidency of the EU Council With the uproar surrounding the proposed EU budget post-2027, the Irish presidency of the EU Council, occurring in the second semester of 2026, will take place throughout a period of finalisation of the 2028-2034 EU budget. Ultimately, this will have farmers and their organisations alike watching the Department of Agriculture closely. The Irish presidency of the EU Council will mean Irish ministers chairing council meetings, and our very own agriculture minister will chair talks that will focus on the finalisation of the Multiannual Financial Framework (MFF) in the context of agriculture. 'We'll negotiate through this proposal line by line and we'll have a very significant role to play during our EU Presidency in the second half of next year,' said agricultural minister, Martin Heydon, in a recent press release regarding the formation of a CAP consultation committee. The last Irish presidency occurred in 2013, which oversaw the agreement of the MFF of the time. Agreements were also reached on the seventh Environmental Action Programme and the reform of the Common Agricultural Policy. Mr Heydon opened the first meeting of the CAP Consultation Committee, made up of key stakeholders, on July 17, to discuss the prospective CAP and EU Budget post-2027. CAP consultation committee The committee contains representatives from: Department of Agriculture, Food & the Marine, the Department of Housing, Local Government and Heritage (including NPWS), the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, the Department of Climate, Energy and the Environment, the Department of Rural and Community Development and the Gaeltacht; The Agricultural Consultants Association, An Taisce, Bord Bia, the County and City Management Association, the Environmental Pillar, the EPA, Ibec; Irish Cattle & Sheep Farmers Association (ICSA), Irish Co-operative Organisation Society (ICOS), Irish Creamery Milk Suppliers Association (ICMSA), Irish Farmers Association (IFA), Irish Grain Growers Association, Irish Natura & Hill Farmers Association, Irish Organic Association; Irish Rural Link (also representing National Rural Network), Local Development Company Network, Macra na Feirme, National Biodiversity Data Centre, National CAP Network, academic members (UCD and UCC), Teagasc, and Women in Agriculture Stakeholder Group. Mr Heydon said: 'The committee will play a crucial role in ensuring that the CAP reform process is transparent, inclusive, and responsive to the needs of various stakeholders within the agricultural and rural community.' He concluded: 'The Commission proposals for new CAP structures in a new MFF architecture will require careful analysis. This seems like a very big change, but in fact this announcement marks the starting point in a long negotiating process. "I will continue to work very closely with Commissioner Hansen, the European Parliament, and my EU counterparts to ensure that the end result delivers the best possible outcome for Irish farmers and the rural communities in which they live.' Following the committee's meeting, a spokesperson for the Department of Agriculture, Food and the Marine informed the Irish Examiner that: 'Committee members were briefed on the European Commission announcements, bearing in mind that the detailed CAP legislative proposals have not yet been published. Committee members gave their initial reactions to the announcements and outlined their priorities for the CAP negotiations. Opening the meeting, Mr Heydon emphasised that the commission proposals are only the first step in a lengthy negotiation process. He emphasised that stakeholders on the committee will be essential partners in the process of working to secure a robust CAP that delivers for Ireland and for all member states.'
Irish Examiner
an hour ago
- Irish Examiner
Hilton hotel group lifts profit forecast as US travel demand recovers
Hotel group Hilton Worldwide lifted its 2025 profit forecast on expectations of a complete recovery in domestic travel demand in the US after a sharp pullback earlier this year. But the company's projection for third-quarter profit came in below analysts' expectations, sending the hotel operator's shares down more than 2% on Wednesday. Some travel companies, including Delta Airlines and United Airlines, recently said US travel demand had steadied after a setback in March driven by President Donald Trump's trade war. "We believe the [US] economy... is set up for better growth over the intermediate term, which should accelerate travel demand and, when paired with low industry supply growth, unlock stronger revenue per available room," said Hilton chief executive Christopher Nassetta. 'On the development side, we achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth between 6% and 7% for the next several years,' he added. International tourists from Canada and Europe have cut down US visits. Hilton's second-quarter US room revenue fell 1.5% compared to a year earlier. However, total revenue for the quarter ended June 30 was $3.14bn (€2.69bn), up 6.3% from a year earlier.. Hilton operates 15 hotels in Ireland including the Montenotte Hotel and the Ballymaloe House Hotel — both of which are in Cork. Bernstein analyst Richard Clarke also raised concerns about the company's ability to meet its 6% to 7% projection for 2025 net unit growth, which refers to the number of rooms added to the company's portfolio. Hilton will need a record second half to meet even the low end of its full-year net unit growth forecast, prompting concerns of a potential downgrade, Mr Clarke said. The company forecast its full-year adjusted profit to be in the range of $7.83 and $8 per share, compared with its earlier forecast of $7.76 to $7.94. The Waldorf Astoria-parent, which last week reopened its flagship hotel in New York after eight years of restoration, posted an adjusted profit of $2.20 per share in the second quarter, beating Wall Street estimates of $2.04, according to data compiled by LSEG. Reuters Read More Davy to focus more investment on European markets amid volatility in US
Irish Times
an hour ago
- Irish Times
Pharma companies unprepared for production shift amid US tariffs
Just one in seven pharmaceutical companies could shift production to the United States within three months should US tariffs on imported drugs become too onerous, new research from consultancy Sia has found. The research, which is based on interviews carried out in June and July with seven senior executives at leading pharmaceutical firms and contract manufacturers, shows none of the organisations feel fully prepared for the potential disruptions that tariffs could cause. The majority of the organisations surveyed, based between Ireland and the US, said they are still in the early phases of scenario planning and are hesitant to commit to major changes while trade negotiations remain unresolved. The US government is reportedly considering tariffs of up to 200 per cent on pharmaceutical products from the EU, China and India – a move that could reshape global drug supply chains and significantly increase costs. [ Donald Trump says pharmaceutical tariffs could reach 200 per cent Opens in new window ] The research found the proposed tariffs would likely result in immediate cost increases, potential drug shortages and long-term consequences for innovation. Higher operational costs 'may reduce investment' in research and development, 'slow the delivery' of new treatments and 'force price increases' that would ultimately affect consumers, according to the findings. Ireland's role as a strategic export hub is also emphasised in the research. In May alone, the value of pharmaceutical and medicinal product exports from Ireland rose by nearly three-quarters to €13.7 billion compared to the same month last year. The research also shows growing momentum behind US-based manufacturing. More than $170 billion in investment has been announced or redirected toward domestic pharmaceutical capacity over the next five years, with 57 per cent of organisations planning to increase their US footprint. 'This shift reflects a broader trend toward regionalisation of supply chains and reduced reliance on geopolitically sensitive markets,' according to the report. Research from 2022 showed US pharma manufacturing facilities were operating at around 50 per cent capacity. Contract development and manufacturing organisations are operating around 55 per cent capacity, suggesting a 'near-term opportunity for expansion without the need for major infrastructure spend'. Meanwhile, staffing and talent development 'still present potential challenges'. However, 'challenges remain' in terms of workforce availability and production agility. The complexity and regulatory requirements of pharmaceutical production mean that relocating manufacturing operations is a 'slow and resource-intensive process'. With US patients already paying more than $12,000 per year on average for healthcare – the highest rate globally – the industry is bracing for additional economic pressure. Niall Cunneen, associate partner Ireland and Britain at Sia, said the pharmaceutical industry has 'long benefited' from highly optimised global supply chains, but the research shows 'these very strengths have become vulnerabilities' in the face of rapidly shifting trade policy. 'The potential Trump tariffs represent a genuine stress test – not just of operational flexibility, but of long-term strategic resilience,' he said. Mr Cunneen said many pharma companies are still waiting for regulatory clarity before making major decisions. 'That hesitation is understandable, but risky,' he said. 'In today's environment, waiting too long to act could mean losing access, margin or momentum.' 'What we're seeing is a growing pivot toward domestic investment, with more than $170 billion of US-based capacity already committed over the next five years.
