Potato Prices in Poland Have Fallen to Historic Lows Due to Overproduction
In Poland, farmers are facing a major crisis in the potato market caused by record overproduction. Due to the surplus of products, wholesale prices for potatoes have dropped to the lowest level in history, threatening producers with losses and jeopardizing their profitability.
This is reported by AgroReview
Overproduction Has Led to a Sharp Decline in Prices
According to the Central Statistical Office of Poland, this year’s potato harvest has increased by 15% compared to the previous season, reaching over 6.8 million tons. However, such a high production figure has resulted in a significant surplus in the market. In the Łódź Voivodeship, wholesale purchase prices have fallen to 25 groszy (2.85 UAH) per kilogram, while in some areas prices are even recorded at 5 groszy (0.57 UAH) per kilogram, equivalent to 50 zlotys (570 UAH) per ton. Meanwhile, in retail, potatoes are sold for 2 zlotys (22.85 UAH) per kilogram.
In light of the crisis, the Agricultural Chamber of the Łódź Voivodeship has appealed to the Minister of Agriculture, Stefan Krajewski, for urgent stabilization measures. Among the proposals are intervention purchases of surplus products or compensation for crop storage.
Minister Krajewski stated: “The state budget is not elastic. The largest funds are currently directed towards arming the Polish army and ensuring the country’s security.” As a possible form of assistance, the government is proposing preferential working capital loans.
Causes of the Crisis and Market Situation
As explained by Andrzej Przepióra from the Greater Poland Agricultural Chamber, the current difficult situation arose due to high potato prices in the previous season, which prompted farmers to increase their planting areas. The least vulnerable to losses are those farms that have long-term contracts with processing companies that produce French fries and chips.
Market expert Maciej Kmiera from the Bronisze wholesale center notes that due to the surplus of products, farmers are forced to sell potatoes immediately after harvesting, as there is a lack of storage facilities for long-term storage.
Market expert Maciej Kmiera adds: “There are too many potatoes on the market; farmers do not store them because they have nowhere to do so, so they sell them right after harvesting.”
Despite record-low wholesale prices, consumers do not feel the drop in potato prices in stores — the raw material accounts for only 11% of the retail price cost. Poland remains one of the leading potato producers in the European Union, surpassed only by Germany, France, and the Netherlands.