Inside: Potato Market

McCain wants to contract larger volume with increase

2 February 2017 - Clarisse van der Woude - 2 comments

Potato processor McCain also has an increase for the 2017 harvest. Procurement Manager Holland Mark Zuidhof mentions the increasing demand for French fries potatoes as a consideration for this decision, which has been initiated by the capacity expansion.

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For field deliveries in September and October, this means that Innovator yields 107,50 per tonne and Agria 102,50 to 107,50 euros, depending on the delivery week. Deliveries for the first week of November dry from the shed look as follows: Innovator 118,30 euros and Agria 120,20 euros. On week 17, Innovator pays 142,50 and Agria 150 euros and at the end of the season, the last week of June, McCain pays 162,60 euros for Innovator and 169,80 euros for Agria.

As considerations for this decision, Procurement Manager Holland Mark Zuidhof mentions the increasing demand for French fries potatoes that has been set in motion by the capacity expansions. 'This increased demand also generates the associated higher contract price. McCain has planned an area expansion next year, so that means an expansion of the contracted volume.'

Seed potato prices for most varieties remain the same, some varieties increase slightly 

Like almost all buyers of seed potatoes this year, there is compromise regarding the seed potato supply. 'McCain works with multi-year volume agreements with the trading houses. Due to the mediocre seed potato yield of a number of varieties, there are shortages of some varieties. We try to compensate for this with other McCain varieties. McCain is currently receiving the volumes that it agreed on," Zuidhof said.

Thus, McCain continues to expand the McCain varieties. 'Royal and Daisy have done very well last year. A significant area expansion is therefore planned for these two varieties. McCain also has a number of promising varieties in mind, but it is too early to make any statements about them at this time.' The raw materials director can say that McCain has consciously chosen not to change seed potato prices at all. The seed potato price for most varieties has remained the same, but some varieties have increased slightly.

Contract types remain the same as in 2016. In addition to the fixed price and mini/maxi contracts, McCain continues to offer Future Contracts and the personal pool system (PPS). "The last contract is certainly a success," he assures. 'Last year the volume doubled and I also expect an extension of this contract for next season. The PPP contracts in combination with a fixed price contract are popular. Furthermore, the shifts between the contracts are minimal, just like in other years.'

Would you also like to know the contract prices for the 2017 harvest from other providers? Click here for the file.

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