"It Was 1 Million Won Three Years Ago, Now It's Free... Take Them for Nothing": Why Farmers Are in Despair

Oversupply Deepens: 5 Million Tons Surplus Across Europe
Iran War and GLP-1 Drugs Add to Industry Woes

Belgium, known as the "home of French fries," has experienced a bumper potato harvest. However, the country is struggling to deal with excess inventory due to the Trump administration's tariffs and the Iran war.

According to the New York Times (NYT) on May 30 (local time), the spot market price for processing potatoes used in French fries in Belgium, the world's largest exporter of frozen French fries, has remained at 0 euros per ton for several months. Three years ago, the price per ton was about 600 euros (approximately 1 million won).

French fries. Pixabay

Across Europe, it is estimated that about 5 million tons of potatoes for French fry production are left over. European potato yields have reached their highest level in eight years, but demand has not kept pace. The NYT explained that the causes of potato overproduction are "a complex combination of factors, including meteorological and geopolitical reasons."

Kris Deheire, who runs a potato farm in eastern Belgium, was forced to dump 1,000 tons of unsold potatoes back into his field. He tried to sell them for just a few euros per ton, but found no buyers, and as time passed, the potatoes sprouted and lost their commercial value. He said, "I suffered a loss of 160,000 euros (about 280 million won) due to soil, seeds, fertilizer, and labor costs," and added, "I had to use up all the money I had saved." The situation is similar in Germany. One farmer held multiple free distribution events in Berlin to dispose of 4,000 tons of unsold potatoes.

International circumstances are also a negative factor. Due to the Trump administration's tariffs, the price of European French fries in the U.S. has risen, resulting in a significant hit to exports. Meanwhile, new competitors such as China, India, and Egypt have entered the market, offering cheaper products. According to World Potato Market, a potato industry journal, the European Union's frozen French fry exports to the U.S. dropped by 8% year-on-year in the 12 months up to February 28. The U.S. is the second largest market for European French fries, after the United Kingdom.

The Iran war is also one of the reasons for the potato industry's slump. Because the closure of the Strait of Hormuz disrupted shipping, and exports to major French fry consumer countries such as Qatar, the United Arab Emirates, and Saudi Arabia also became difficult. Christophe Vermeulen, CEO of Belgapom, the Belgian potato processing association, told the NYT, "The Iran war is the most recent factor putting a strain on the frozen French fry supply chain."

Changes in consumer eating habits also cannot be ignored. The NYT reported that "the growing preference for healthy snacks and the increased use of GLP-1 type anti-obesity drugs such as Ozempic and Wegovy are reducing demand for processed and fried foods like French fries."

This content was produced with the assistance of AI translation services.