Inside: Potato Market

TPC makes all potentials come to value

4 July 2017 - Niels van der Boom

Due to a demanding market, it was not difficult for The Potato Company (TPC) to allow all batches of seed potatoes to gain value. The French fries industry laid a solid foundation in the market. This was especially beneficial in the second half of the season.

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The average price for all seed potato varieties, class A to S, for the 2016/17 season is € 33,31 per 100 kg. Before the 2016 harvest, that was € 29,95 per 100 kg. A plus of € 3,36. Last season already managed to make the pool price a plus of €3. The pool prices were announced on Friday 30 June, after the opening of the new business premises in Emmeloord. According to TPC director Gaby Stet, the high price level is due to the demanding market. “We were able to bring value to all the potatoes. All leftovers have been sold and the oversize also went away quickly. This is due to demand from the French fries industry. For the growers, the price is in line with their expectations.”

33,31

euros/100 kg

is the average pool price of season 2016/17

Desiree negative
“Most varieties have achieved a result of around € 31,50 per 100 kg,” says Stet. “There are outliers up and down. Desiree got a slightly lesser price. An outlier to the top is, for example, our purple-fleshed Bergerac. It quotes € 61,50. Same result as in 2016. This variety is a real niche. Spunta comes out at € 30,55. The market for organic seed potatoes was also very good. A matter of high demand and low supply.

Spunta market split in two
“Overseas exports have gone reasonably well. Algeria was a brake on the market at the beginning,” the TPC man outlines. A lot has been sold around € 27, because free growers saw little benefit in the market. Later on, the trade started to buy more Spunta, so I think pools could have made a plus. Until December, the market was meager, but in the end everything was sold. For Spunta class A with scab scale 2 or 2,5 you can only go to Algeria, for prices around € 20/€ 21. However, the French fries industry offered 1 or 2 euros more. Free growers, but also trading houses, then decided to sell their batches of Spunta to the industry.”

Breeding program affected
The growth crack issue, which dominated the seed potato market last season, also has consequences for TPC. “Last year it became clear which varieties are susceptible to growth cracks. Even varieties that we previously thought wouldn't pose a problem. There are many fast-growing varieties and that is where the growth cracks manifest themselves. As a result, we have discarded many seedlings from our breeding program. The risk is too great that the problem will reoccur. That is quite an eye opener. In such an extreme year you can select on this characteristic.”

TPC's breeding program focuses on AM resistance

Focus on AM resistance
TPC's breeding program focuses strongly on AM resistant (fried) potato varieties. “We speak of multi-resistant varieties. For us, that includes Montreal and Toronto," says Stet. AM contamination is a growing problem. In Flevoland, but also in the northeast. We see that other countries are now also taking samples and mapping infections. You will encounter AM infections in all countries where potatoes are grown intensively.

Drought
Stet expects good exports for the 2017/18 season: “Many consumption varieties have been planted. This is at the expense of the export varieties. You can see that in the decline of the Spunta variety. Ultimately, price makes the market. A 5% shortfall can double the price. 5% surplus halves the price. It is inevitable that the dry conditions influence the yield. The high temperatures of 30 degrees and more have taken their toll. In addition, it has been dry for 2 months. This costs a lot and we also see scabies increase significantly. Despite the drought, growth development has been tremendous in just 70 days. Of course, sometimes nuances have to be placed. TPC uses the usual distribution in all Dutch seed potato regions for its cultivation areas.”

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