Weak demand and falling exports put Dutch seed potato market under pressure, say HZPC and Agrico

In the Netherlands, the weak table potato market, fewer contracts and disappointing exports are putting pressure on the seed potato market. Companies such as Royal HZPC Group and Agrico describe the current situation as a market correction following exceptionally strong years.

Peter Ton from Royal HZPC Group said the market is significantly lower than last year, when payout prices exceeded EUR 60 (USD 68) per 100 kilograms. HZPC now expects a payout price of around EUR 44 (USD 50) per 100 kilograms.
 

Differences between varieties and trading houses

According to Peter Ton, price differences between trading houses depend heavily on variety portfolios and export markets. He noted that open-pollinated varieties are under greater pressure compared with protected varieties.

Peter Ton, Business Director at Royal HZPC:

"When the market slows, demand for open-pollinated varieties is the first to go. That leaves little for the open market."

The seed potato market is also being affected by conditions in the ware potato sector, where lower demand for table potatoes is reducing demand for seed potatoes.

Peter Ton:

"Our customers grow table potatoes. Less demand there means less demand for seed potatoes."

Due to the long planning cycle in seed potato production, market reactions were delayed as prices remained high even after consumer demand weakened.
 

Processing slowdown and export fluctuations

Agrico CEO Mark Zuidhof said disappointing final product sales in the processing industry resulted in fewer contracts, reducing demand for seed potatoes.

Mark Zuidhof, CEO of Agrico:

"As a result, there's less demand for seed potatoes."

Noncontracted growers and traders are being affected most strongly, as many are reducing risk exposure in uncertain market conditions.

Export demand also remains inconsistent. Countries in Asia and the Middle East, including Egypt, are importing fewer potatoes, while Algeria has increased purchases. Geopolitical tensions, shipping disruptions and wet weather in Southern Europe are also influencing trade flows.

The market situation varies by potato variety. Processing varieties such as Innovator continue to perform relatively well, while demand for other varieties has weakened.
 

Market correction after strong growth

Peter Ton described the current situation as a correction rather than a structural crisis.

Peter Ton:

"This is a correction, not a crisis. We've gone from sky-high to rock-bottom levels."

Despite current challenges, both HZPC and Agrico maintain a positive long-term outlook for the potato sector, while acknowledging continued uncertainty linked to weather conditions, geopolitics and global industry developments.