The European potato market is facing the challenge of significant surplus produce, which is forcing some farmers to pay for excess disposal.

According to research from DCA Market Intelligence, the total surplus potatoes in the EU amounts to approximately 3.3m tonnes.

Farmers in the Netherlands, Belgium, Germany and France grew their potato cultivation over the past two years based on strong demand and favourable contract prices, which resulted in high yields.

However, the demand for potatoes decreased due to increasing competition from Asia and tariffs within the United States and a weaker dollar, which has led to a structural surplus.

The price formation has shifted to reflect the surplus, with PotatoNL recently recording prices of -£0.86 to £-0.87 GBP per 100kg for potatoes for animal feed.

The extra supply has led to volumes being redirected to animals and biodigestion, with disposal costs falling on farmers.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

The data found that in 2025 the Netherlands harvested approximately 4.2m tonnes of ware potatoes, 900,000 tonnes more than the year prior.

There is an estimated 500,000 to 600,000 tonnes still remaining after the others were diverted to feed, digestion or starch processing.

Other European countries are facing a similar challenge, with 800,000 tonnes in storage in Belgium while France has a forecasted surplus of 1m tonnes.

Niels van der Boom, potato market specialist at DCA Market Intelligence said: “Not everyone can store their potatoes for that long. Moreover, there is currently no outlook for market improvement. As a result, growers are deciding to stop incurring cooling costs.”

According to the DCA further measures need to be taken to realign marketing and contracting due to the changed consumer demand.