Balancing Supply and Demand in European Agriculture: Lessons from the Potato and Onion Sectors

European agriculture, like global agriculture, is experiencing a turbulent period, marked by challenges in balancing production and demand, climate issues, and price volatility. In this context, lessons from the potato and onion industries can serve as an important model for other sectors.

Rudi Rampaers, director of the Belgian company RapaFruit, warned about the risks of overproduction. “The problem isn’t just about surpluses; it’s that such a situation drives prices down, leaving producers without adequate income,” he told AgriPress. Rampaers cited the example of cherries in Belgium last year when producers were forced to destroy part of their crop due to market constraints.

Similarly, Harris S. Cutler from the USA, director of Race-West Company, Inc., emphasized the need for better alignment between production and consumption in the potato and vegetable sectors. “Currently, we have sufficient quality potato stocks in our main production regions, but it’s crucial to ensure that production is not out of balance with demand,” Cutler told Fresh Plaza. As an example, he pointed to the pear market, where there is a shortage in the USA, while international producers face surpluses.

The Impact of Prices and Consumer Trends

“The price of potatoes today is at the same level as in the 1970s, 80s, and 90s, which is incredible given the rise in other costs,” said Cutler. This price stability, according to him, significantly contributes to constant demand. “Potatoes are a staple food that is affordable and increasingly common in people’s diets,” he added.

Similarly, Antonio Munoz from Spain stressed the importance of developing varieties that align with new trends. “Yellow potatoes are now more popular than white ones, and producers have invested in developing varieties that are tastier and easier to prepare,” he told Spain’s El Campo.

The Role of Retailers in Market Stability

Cutler praised the approach used by the Aldi supermarket chain. “They have achieved a balance between price and quality thanks to close collaboration with producers,” he said. This model, which ensures profitability for farmers and affordable prices for consumers, should be an example for other retailers.

“Potato and onion production and sales can serve as an example of how to organize the market for other agricultural products,” Cutler concluded. Stable prices, collaboration between farmers and retailers, and a focus on quality and consumer needs are key elements of this model.

As Rampaers added, the future of agriculture lies in precise planning, but also in adopting new technologies that will enable sustainable production aligned with market needs. According to Cutler: “If, as an industry, we can ensure reasonable prices while allowing producers to earn a profit, we can create a model that will support other sectors as well.”

These examples from the potato and vegetable sectors demonstrate how better supply and demand management can contribute to market stability, ensuring the welfare of all participants in the supply chain. We must learn from mistakes and others’ experiences.

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