The main factor behind falling potato starch prices has been the very favourable 2025 crop, which delivered a much larger harvest in the main production areas. Output in the Netherlands reached 3.62 million tonnes, 15.5% higher than 2024. Germany produced around 13.4 million tonnes, up approximately 5%, while Switzerland came in around 20% above 2024 levels.
This has pushed potato starch prices to their lowest point since 2024. Prices have stabilised during January, but recent increases in energy and fertiliser prices in Europe mean producers will face higher operating costs, which may provide some support at current price levels, as further price declines could push them into loss-making territory.
Prices for processing potatoes are now very low, which could indicate that starch producers will set lower contract prices going forward. In response, farmers may substitute potatoes with other crops in the coming season. Weather conditions will need to be monitored closely as harvest season approaches around August, to determine whether the crop will be as favourable in 2026 as it was in 2025.
Read the full starch market analysis in Vesper’s Free Bakery H1 2026 Market Outlook: https://vespertool.com/downloads/