Oversupply Deepens: 5 Million Tons Surplus Across Europe
Iran War and GLP-1 Drugs Add to Industry Woes
Belgium, known as the “homeland of French fries,” is experiencing a bumper potato harvest. However, due to tariffs imposed by the U.S. administration under Donald Trump and the outbreak of the Iran war, the country is struggling to deal with a glut of unsold inventory.
According to the New York Times (NYT) on May 30 (local time), the spot market price for potatoes used in French fry production in Belgium—the world’s largest exporter of frozen French fries—has remained at zero euros per ton for several months. Three years ago, the price per ton was around 600 euros (approximately 1 million won).
French fries. Pixabay
Across Europe, it is estimated that around 5 million tons of potatoes intended for French fry production are in surplus. This year’s potato harvest in Europe reached its highest level in eight years, but demand has not kept pace. NYT explained that the causes of the potato oversupply are “a complex combination of meteorological and geopolitical factors.”
Chris Deheyre, who runs a potato farm in eastern Belgium, was forced to dump 1,000 tons of unsold potatoes back into his fields. He tried to sell them at any price per ton, but there were no buyers, and as time went on, the potatoes began to sprout, losing their commercial value. He said, “I lost 160,000 euros (about 280 million won) on soil, seeds, fertilizer, and labor costs, and I had to use up all my savings.” The situation is similar in Germany. One farmer held several free distribution events in Berlin to get rid of 4,000 tons of unsold potatoes.
International circumstances are also adding to the challenges. The Trump Administration’s tariffs have driven up the price of European French fries in the U.S. market, causing a significant blow to exports. Meanwhile, new competitors from China, India, and Egypt have entered the market, offering cheaper products. According to the World Potato Market, a potato industry publication, EU exports of frozen French fries to the U.S. declined by 8% year-on-year for the twelve months ending February 28. The U.S. is the second-largest market for European French fries after the UK.
The Iran war is another reason for the potato industry’s slump. Blockades in the Strait of Hormuz have disrupted shipping, and exports to major French fry-consuming countries such as Qatar, the United Arab Emirates, and Saudi Arabia have also become difficult. Christophe Vermeulen, CEO of the Belgian potato processing association Belgapom, told NYT, “The Iran war is the most recent factor putting pressure on the frozen French fry supply chain.”
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Changes in consumer eating habits cannot be overlooked either. NYT reported that “an increasing preference for healthy snacks, along with the growing use of GLP-1 class obesity drugs such as Ozempic and Wegovy, is reducing demand for processed and fried foods like French fries.”
This content was produced with the assistance of AI translation services.
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