Record profits for manufacturers, crumbs for farmers. The title of the latest Greenpeace report has the merit of being shocking. A little too much even for Belgapom, the federation of Belgian potato manufacturers. According to her, the NGO paints a portrait of the sector far from reality.
Profit multiplied by 15
At the heart of the problem according to Greenpeace, the unprecedented results of manufacturers, which do not benefit farmers. In 2022, the profit of the seven largest companies in the sector – nicknamed Big 7 – was 15 times higher than in 2021. Profits that Belgapom does not hide: “We are proud that our members are performing well.”
Companies owe this performance first to the increase in the price of potatoes, by 61% since 2015. Over the same period, general inflation “only” reached 26%. All this even though “other costs, such as energy, fell faster than expected”, adds Christophe Vermeleun, CEO of Belgapom. Finally, “several companies have increased their production”. According to him, the 2022 results are therefore justified. It’s true, Belgian factories processed 18% more potatoes in 2022 than in 2019. Despite everything, we remain far from the growth figures of the Big 7.
2 cents for farmers?
Especially since the farmers are not invited to the party. 7 companies account for 90% of the Belgian industrial market, underlines Greenpeace. Conditions that allow them to impose their prices. Result: for a kilo of fries sold at €1.63 in 2022, only 18 cents went to the farmer. Once production costs were deducted, the farmer was left with only two cents.
An imbalance that must nevertheless be corrected “put into perspective”, protests Mr. Vermeleun. Indeed, Greenpeace is interested here in contractual prices, “negotiated at the time of planting”explains Laurent Limbort, farmer in Geer. “This makes it possible to guarantee a stable price “. Mrs. Aury specifies: “These prices concern 70 to 75% of production”.
However, farmers can also sell their production at market price. This revolves around the quotation determined each week by Belgapom according to supply and demand. However, the latter is now reaching record levels, at 60 cents per kilo. Moreover, “since 2019, contract prices have increased by almost 40%”, adds Mr. Vermeleun. Which nevertheless remains lower than the increase in prices in supermarkets.
Greenpeace is also attacking the Belgapom listing. This being determined by the institute responsible for representing industrialists, it “perpetuates the asymmetry of power between the Big 7 and producers”cingle Albane Aury. “Greenpeace does not accuse manufacturers of forming a cartel or agreeing on prices”, but the NGO urges the government to conduct a new investigation. Nothing to worry about Christophe Vermeleun: “The Belgapom rating is validated by the Belgian competition authority.”
Why potatoes?
Greenpeace has put forward several proposals to address this situation. The NGO supports agricultural cooperatives and would like to see the Belgian state resume its role as an intermediary in negotiations, “as was the case until 2001”. But the association remains cautious. “We do not want to impose our ideas on farmers”.
Above all, the NGO hopes to alert people to the flaws in agriculture as a whole. “The potato is an iconic industry in Belgium, it is the perfect example of the inequalities that we are fighting.” However, for Laurent Limbort, this choice raises questions. The farmer recognizes that “the balance of power between farmers and industrialists poses a problem. It is unacceptable that even if my crops are successful, my yields are negative.” Yet, “potato farmers are not the most to be pitied, it’s worse for milk for example”. Belgapom enchérit: “We saw very few potato producers in the demonstrations”.
