HZPC growers can count on record price

With the determination of 33,15 euros per 100 kg for the 2016 harvest, potato breeder HZPC Holland bv has achieved the highest forecast price in ten years. However, it will not be the best financial year for the grower, because the yield is quite a bit lower.

With just under three months to go before the HZPC sales season ends, the seed potato trading house will present its expected seed potato price for the 2016 harvest on Tuesday. This allows growers to calculate in good time what it means to them and then make plans for the new season. 'We try to predict these as accurately as possible, but the final price will not differ much,' says director Gerard Backx.

After all, not much can change. 'A lot of seed potatoes are no longer available, so much is no longer sold. The delivery of seed potatoes will continue up to and including May, and there may still be some complaints, which may still have some influence on the price. Like every seed potato house, we also have to deal with the new European legislation for imazalil and relatively dry harvesting conditions. Because less is treated against fusarium, batches that are beautiful on departure can look very different a few weeks later. If a batch is rotten, we don't get paid. That means that you have to make an arrangement by replacing the parties or that you have to credit something.'

The price of 33,15 euros per 100 kg is the result of the limited availability of seed potatoes and the good consumption market in Europe. This pushed up the prices for certified seed potatoes. In countries where a lot of farm saved seed is usually used to plant new acreage, these potatoes are sold as consumption. 'The result is that seed potatoes have to be imported. Since 40 percent of the acreage in the entire EU consists of farm saved seed, the consumption market therefore has an important influence on the size of the seed potato market.'

The fresh market was the most profitable. This year there is a lot of demand in Europe for seed potatoes for the table market. This concerns about a quarter of the sales of the Dutch HZPC seed potato pool. With a higher yield, sales in this market could have been greater. Due to this shortage, realized prices were somewhat higher than last year.

There is also a high demand for seed potatoes for the processing industry this season. This, in combination with a more limited supply, creates a shortage in this market. The average yields of the industrial varieties were significantly lower than the multi-year average. The realized prices are nevertheless very comparable to last year, because this segment often works with multi-year agreements.

Half of the seed potatoes from the Dutch pool are exported to the Middle East and Africa. According to HZPC, supply and demand in this market were fairly balanced. This export was accompanied by political and financial obstacles in many countries, but in the end it went well. The realized prices are comparable to last year.

The high forecast price means that the 2016 harvest will be one of the better years financially for the average HZPCâ€'seed potato grower. Nevertheless, the record of the 2010 harvest will not be broken. The hallmark of that year was an exceptional combination of high yields and high prices. This year the yields are lower. 'Weather conditions during the growing season were decisive for the 10 percent lower weight yield compared to the excellent crop year 2015. Compared to the five-year average, the average hectare yield of the 2016 harvest was only more than 3 percent lower, both within the seed sizes and in terms of total yield', said Lilian Escalon, HZPC's director Europe.

Within the potato sizes, the weight yield was just under 6 percent lower than last year. The excess sizes are partly sold as seed potatoes. Depending on the variety, HZPC Holland expects to pay 14 to 17 euros per 100 kilograms, which comes down to a weighted average of more than 16 euros. 'The prices of the oversize are fixed. They don't change until June. There is a group of varieties that yield 14 euros and a group that turns 17 euros.

That is quite a bit higher than last year when 10 and 12 euros were paid out, but the consumer market was very different then. The industry also wants to decrease the oversizes for cutting. Due to the seed potato shortage in industrial varieties, there is no other choice this year.' The oversizes that are not suitable for this mainly end up in animal feed and furthermore in the flake industry and attractive batches in small packaging.

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