Money and chaos hinder overseas seed potato export

What is special this year is the large number of sales countries that are struggling with a limited amount of hard currency. In most cases this is caused by the low oil price, but in Egypt it is also a result of the absence of tourists. 'Tourism is starting to pick up again, but no hard currency has entered the country for a long time. The government tried to keep the pound at a certain rate against the dollar.

The policy was aimed at not being able to simply buy and sell.' That strategy was abandoned at the end of October and beginning of November, after which the pound halved in value. Then it became possible to buy and sell hard currency as a trader. 'The devaluation of the pound has had a huge impact, because it made our potatoes twice as expensive and less was purchased.'

To prevent too much hard currency from being used in Algeria, the government established a import quota on seed potatoes. 'That led to a lot of political discussion about how to quote and arrange things between the various importers,' says Backx.

Initially, 80.000 tons were allowed to be imported, and rules were also imposed on the varieties. Later Algeria decided to allow another 20.000 tons. This brought it back close to the normal export volume. 'However, the Spunta price suffered quite a blow and fell to 23 to 24 euros. Only later in the season did the potato find its way back up again.'

Another barrier to doing business is the violent situation in Syria; especially in and around the cities. Backx: 'With many agricultural areas, especially in the west and on the coast, many farmers could continue to produce. The harbor has remained well intact; then you can keep sailing. The growers also had the money to buy seed potatoes.'

However, getting the money into HZPC's bank account took a little more effort. 'Everything has to be arranged. If payment is made in advance, we can deliver. Otherwise you try to provide security through a letter of credit. Syria's banking system does not work, that has to be done through neighboring Lebanon. Sometimes other channels or intermediaries are used.

Due to the limitations, it requires a certain degree of creativity. Consider trucks that cannot pass certain border crossings and have to detour hundreds of kilometers via Iraq. They are often able to have the payment come to us. Ultimately, a fairly large volume of seed potatoes entered the country.'

Exports to the Middle East are not yet ready for this season. Although Yemen is not much in the news, the situation there is explosive. After almost two years of civil war, famine is threatening. The United Nations recently called on the warring parties to want greater access to ports to import food, fuel and medicine.

'Yemen always arrives a little later on the market for seed potatoes. It is not an easy country, but it seems now that we can get our products there. A few years ago that didn't work. Due to shelling in the port, the captain decided to turn his ship with containers of seed potatoes. These consignments never arrived. You experience these kinds of things.'

Seed potato exports to Egypt, Algeria (dz), Syria and Yemen:

*2016 harvest volumes have been updated through January 2017. Season isn't over yet, so there could be more to come.