Call to potato industry

ABS: 'Think about dealing with growers'

26 January 2018 - Anne Jan Doorn - 31 comments

The General Farmers Syndicate (ABS) calls on the potato processing industry to think about the way in which growers are treated. Hendrik Vandamme, chairman of ABS, wonders how it is possible that growers are still being presented with contract prices that are below cost. So reports the Belgian Felt.

The potato processing industry in Belgium has grown strongly in recent years. Growers responded to the resulting demand in order to guarantee supplies. "The contract prices went up to a decent level. Anyone who really has a handle on cultivation and monitors their crops well could present a nice balance in recent years (apart from the weather influences), "said the chairman against Vilt (Flemish info center agriculture and horticulture).

Not of this time to offer a contract that does not cover the cost price

Industry throws a spanner in the works
As a result, many growers have invested heavily in potato cultivation. However, now that the spoils are in for the potato industry, the 'growth together' seems to be suddenly reversed. The profit is not shared, but the potato growers are offered contract prices that are below cost price. This would be due to an oversupply of growers. However, ABS argues that they have responded to the demand of the industry.

No way back for growers
Due to the investments made, there seems to be no turning back for the growers. With a new growing season ahead of us, the growers are already the losing party, ABS believes. That is why the body advises growers to calculate the cost price properly and not to sign contracts that do not cover the cost price.

In the Netherlands, no appeal has yet been made by the interest representatives. The first factory has now contract prices announced and the next week others will follow. Whether this will lead to commotion in the Netherlands remains to be seen. This is because there are currently no alternative crops available.

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Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.
Comments
31 comments
Subscriber
freebooter 26 January 2018
This is a response to this article:
Would Michel also read?
contract slave 26 January 2018
The gentlemen of the industry in no way harm your fate, already plenty of offer for next years,,,
call 26 January 2018
I would like to call on everyone not to sign a contract!!!!
peta 26 January 2018
They play it smart, in a bad year right for a tip more, committing for 3 years. The growers who are tempted to do so know for sure that they will never earn anything. They do have that certainty.
Greuste potato 26 January 2018
Fajiet going is also a certainty that you as a flex worker have to take into account.
Pieper 26 January 2018
Are you sure it costs money, so it's very reassuring.
Subscriber
No 26 January 2018
Said person at freebooter only thinks about himself. Takes nothing into account but yourself. Is about l....n
Bernie 26 January 2018
There is finally someone who sticks his neck out in the interest of the growers. Where is that other chairwoman (read farmers' union)
also belgian 26 January 2018
stick out your neck??? who ever said you had to jump that far as a jack... the jack decided himself. then I didn't hear the abs calling... other organization bets on: first sit down quietly and start counting before you jump. calling afterwards abs is strong in that. here only 1 person is to blame and that is the farmer himself, who has placed his decision-making power in the fate of another. take it in your own hands or stop it!
bernie 26 January 2018
also belgian wrote:
stick out your neck??? who ever said you had to jump that far as a jack... the jack decided himself. then I didn't hear the abs calling... other organization bets on: first sit down quietly and start counting before you jump. calling afterwards abs is strong in that. here only 1 person is to blame and that is the farmer himself, who has placed his decision-making power in the fate of another. take it in your own hands or stop it!

Let me be clear Also Belgian. I am not a member of neither abs nor BB. I have long decided for myself that it makes no sense. When are both going to play the card of the farmer instead of self-interest. I only notice that there are someone responds anyway. Which in itself is a step forward. And as for the calculation. Try to count today, you will always be disappointed. Wheat, don't stay a farmer of. Sugar beets, pants from the same sheet. Milk , downward trend. Potatoes ditto. Beef cattle,mass abandonment.etc ... I wish you good luck in the math .
Farmer 26 January 2018
It is of course not really normal not to give the raw material supplier a cost price plus a decent risk margin.
Subscriber
freebooter 26 January 2018
Michel, well thought of by the sencuracy committee. Was W of S
karel 27 January 2018
in Belgium at least one organization is making itself heard. in the netherlands we have the lto that crawls in front of the cattle ranchers and severely suffocates the garden/fruit/arable farming
also belgian 27 January 2018
That's true Karl. And the organizations should indeed make a lot more of a fuss. But we have to realize one thing, both technically and financially, we will have to make it ourselves. Do not blindly follow what people who enter the grounds will tell you... I have completely abandoned that and only let independent people speak (usually paying). no, rooting around day and night and working on a product for a year and then handing it over. There is only one crop with me (sb, wheat, maize, nature) where I earn a decent income and that is potatoes! have quality inside and they are almost completely covered. as I say, try to run top technically and financially every year! entrepreneurship is top sport! and the lord of the abs says there is no buffer for the futures market... then go and talk to the bank instead of your heir. but yes you do a winter meeting on this subject you don't see a cat .. too much work .. that's the Flemish reality
Subscriber
wig maker 28 January 2018
I have also read a more extensive interview by Mr. van Damme where I think he says that many farmers with 100+ ha commit themselves to the French fries barons as 'subcontractors (slave, serf, Judas and field employee)'.
Finally someone who understands and agrees with me. Have these subcontractors arrested and charged with 'high treason'.
Putin would know...
Bottoms 28 January 2018
Play that trade, they do not want otherwise, there is nothing mandatory anyway.
Skirt 28 January 2018
A slave driver (industry) does not let his slaves (grower) go without being forced by law (know your history). Work has to be done, otherwise the whip is over (lower contract prices).
call 28 January 2018
call wrote:
I would like to call on everyone not to sign a contract!!!!


right! only... the colleagues in my neighborhood have all drawn nicely, some even proud for the higher price (3 year contract).

I'm afraid I'll have to go with them in the long run (because I don't have a good shed for storage until May-June otherwise they could go up into the tree)
I'm going to try to counteract it but, does it only help?
Skirt 28 January 2018
You only live once, everyone makes their own choice, but giving your life away to a slave driver is the last thing I would do.
peta 28 January 2018
cagri wrote:
call wrote:
I would like to call on everyone not to sign a contract!!!!


right! only... the colleagues in my neighborhood have all drawn nicely, some even proud for the higher price (3 year contract).

I'm afraid I'll have to go with them in the long run (because I don't have a good shed for storage until May-June otherwise they could go up into the tree)
I'm going to try to counteract it but, does it only help?

Why not insure something on the futures market.
If above 14, why sign a contract that is lower?
Subscriber
ape 29 January 2018
petatje wrote:
cagri wrote:
call wrote:
I would like to call on everyone not to sign a contract!!!!


right! only... the colleagues in my neighborhood have all drawn nicely, some even proud for the higher price (3 year contract).

I'm afraid I'll have to go with them in the long run (because I don't have a good shed for storage until May-June otherwise they could go up into the tree)
I'm going to try to counteract it but, does it only help?

Why not insure something on the futures market.
If above 14, why sign a contract that is lower?


If you save for Agri**o until April you will get more than 14ct. At FF it is completely bumblebee, minus 1.25 and the seed potatoes have only dropped €70/ha.
We haven't signed anything yet, wait until April, see what the weather does.
Subscriber
Skirt 29 January 2018
14 cents... and taking all the risk too. Know what you're getting yourself into.
anton 29 January 2018
Potato growers on contract will HAVE to grow EVEN more variety when the price falls, in order to balance their POTATOES budget. Everything is based on an X gross result. Investments have been made on it, they have to be, interest, repayment and the growing costs of cultivation MUST come.
There will be contracts instead of less.
What do those few here in the Netherlands say who (say) no longer sign a contract.
Skirt 29 January 2018
Just like I said, then the slave driver (industry) gets the whip, more work for even less. Or you revolt and refuse to accept this any longer and stop growing potatoes, even then the world will not end, but you must have the courage for it.
Jay 29 January 2018
Compared to the current daily price of 3 euros for the fontane, the 14 seems quite decent to me.

A slave has no choice, a farmer does but makes the wrong choice.

In case of oversupply, organized destruction is the solution. But you don't hear much about that. In Flanders they say: "Go on as you are doing".
Farmer Farmer 30 January 2018
They are frustrated farmers who have borrowed heavily for a crop where they knew in advance that the processing industry is ONLY there for its own pocket. This is called the game of: it is the dumbest who must first, and then the next . frogs sitting in the rapidly warming water also jump out one by one. Alternative ? Yeah, not that simple either. No entrepreneur loses in advance, right?
Subscriber
seller 30 January 2018
If you harvest 40 tons next year due to circumstances, you will be fine with such a FF contract of 8 ct. 1500 rent, 600 phyto, 350 fertilizer, 1200 seed potatoes and 1000 work.
3200-4650= big trouble with that W from S at the helm. First tender the market down to get the excess kilos almost for free, and then this... They don't keep customers with him at the wheel. Time for the Bru*n to intervene.
wig maker 30 January 2018
seller wrote:
If you harvest 40 tons next year due to circumstances, you will be fine with such a FF contract of 8 ct. 1500 rent, 600 phyto, 350 fertilizer, 1200 seed potatoes and 1000 work.
3200-4650= big trouble with that W from S at the helm. First tender the market down to get the excess kilos almost for free, and then this... They don't keep customers with him at the wheel. Time for the Bru*n to intervene.


This is the worst Judas, that farmer from Zeeland. I'll say it again, those own nest polluters have blood on their hands.
Subscriber
chips 31 January 2018
In the past, the potato price has always been 40% of the French fries price. Now it is less than 20%. Not a normal situation .
Subscriber
ape 31 January 2018
And if you sell them for €30, you'll have €27.50 left at the end of the day. This by means of a land fine and weighing wages.
chickenpox 31 January 2018
seller wrote:
If you harvest 40 tons next year due to circumstances, you will be fine with such a FF contract of 8 ct. 1500 rent, 600 phyto, 350 fertilizer, 1200 seed potatoes and 1000 work.
3200-4650= big trouble with that W from S at the helm. First tender the market down to get the excess kilos almost for free, and then this... They don't keep customers with him at the wheel. Time for the Bru*n to intervene.


Those other factories have even lesser buyers! My neighbor sold his potatoes to the FF anyway because he paid 25% more!
anton 31 January 2018
Just read on BB that there will be NO LESS potatoes in the coming season. Will the contract price drop even further from now on. and with those prospects it won't be easy.
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