Inside: Potato Market

Potato pool Eriva proves added value

5 July 2017 - Niels van der Boom

Potato growers who are members of the Eriva potato pool can be satisfied with the result that was presented on Tuesday 4 July. However, this does not mean that the financial return of the cultivation, compared to last season, is so much better than in the 2015 harvest. The differences in yield per variety are sometimes large.

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Eriva achieves an average pool price of € 2016 per 23,50 kilos in week 100 for the 13 harvest. This is the price excluding VAT, of which € 0,03 per 100 kilos is still paid in pool costs. The price mentioned applies to the Bintje, Fontane, Innovator, Lady Anna and Ramos varieties. The storage fee is +/- € 0,10 per 100 kilos. The pool price applies to clay potatoes suitable for chips, 40 mm upwards. At least 60% is 50 mm upwards.

23,50

euros/100 kg

is the basic price realized in week 13

Plus for Agria
In week 13, the Melody variety adds €0,40 per 100 kilos, on top of the basic price. For the Maritiema variety, € 0,50 per 100 kilos is deducted. A positive outlier is the Agria variety, with a plus of € 1,50 per 100 kilos. This brings the pool price for Agria, in week 13, to €25,00. Exports to customers other than chip factories have caused this higher price. The period of the marketing season also influences the result. “When there was demand for Innovator, the futures market and physical market were at a low level,” explains pool manager Sjaak Ermers. “We were able to sell the Bintje variety, a relatively small and stable area within the pool, when there was a lot of demand for it.” Last year, Bintje had to pay a minus of € 1,5 on the basic price.

Factories have been flexible and handled things very correctly

Small extra charge for quality
The fact that the prices achieved are considerably higher compared to the 2015 harvest does not mean that growers are that much better off, Ermers knows: “Past a grower harvested perhaps 40 tons of Innovator per hectare. Good for a balance of € 9.400. In 2015 he harvested 50 tons per hectare, at €8.650. The balance of the 2016 harvest is only slightly above this.” Much has been said and written about product quality. “The factories have been flexible and have handled things very correctly,” says Ermers. “The factories had no other choice. Every potato has been handled with care. Growth cracks, as well as harvest damage, also occurred in the main Eriva growing area of ​​Flevoland. Nevertheless, the average tare percentage is not disappointing. What was striking is that high-quality parties were not able to differentiate themselves sufficiently from a price point of view. That is unfortunate for the farmer, who did not have to deal with quality problems.”

Seed potato puzzle
After the low yield expectations that were established last summer, Innovator ultimately ended up even lower. Ramos delivered more kilos than expected. Partly because more potatoes of this variety fit in one cubic meter, Ermers knows. Last season, oversized seed potatoes spoiled the consumption potato market. This was not the case in the 2016/17 season. The seed potato supply for the 2017 harvest did cause some headaches for the pool. “It was difficult to have sufficient seed potatoes, but in the end we succeeded. It is special to see that an area expansion can once again take place in Europe, while seed potatoes turned out to be such a scarce commodity. Within the pool, part of the surface shifts Ramos to Lady Anna.”

15,08

euros/100 kg

Is the average pool price over 10 years

Pool interest is increasing
“After last season, it has become clear to chip factories that the supply of raw materials is not always self-evident. Caution is advised,” notes the Eriva man. “Factories act on this fact and try to secure more raw materials on contract. This increases the economic importance of the pool. Our average pool price, over the period from harvest 2006 to 2016, amounts to € 15,08 per 100 kilos. This means that the pool price achieved over the years will be a plus on top of the fixed price contract. In addition, pool sales give a grower peace of mind, especially during major fluctuations in the market. This convenience is difficult to express in money. With a contract with the factory, your only certainty is the maximum price you receive. The Eriva pool therefore has no pre-sales. That is also a kind of fixed price contract. This doesn't suit us. We see that there is more attention for the potato pool.” The majority of the affiliated growers are located in Flevoland. Just a few out there. Growth is not a goal in itself. “Farmers know the guy and the tent. That appeals to them,” Ermers summarizes soberly.

Drought postpones growth
He is also down-to-earth about the upcoming harvest: “Potatoes grow in sandy soil in July. On clay, most production takes place in August. The drought of June therefore does not impress me. Maybe also because I haven't really experienced it personally. Drought postpones growth until rain comes. History shows that enormous growth can also take place in August. Heat is something else. That costs revenue. We saw this last year in August. It remains to be seen what the 2017 harvest will bring.”

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