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).
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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This is a response to this article:
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!
I would like to call on everyone not to sign a contract!!!!
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?
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 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.
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.