For 2018, on average, Agristo will bring the contract prices back to the level of 2016. In the working area of the new factory in Wielsbeke (Belgium), it is looking for expansion in growers and acreage. For this purpose, the eyes are also turned to Northern France.
On average, potato processor Agristo implements a price reduction of 20% in the early segment, at least relative of 2017. For the main harvest, this is 10%. This reverses the 2017 increases. The exact reduction, however, is a bit more nuanced.
On land, the company pays €9 per 100 kilos for Fontane and Challenger and Innovator comes to €10 per 100 kilos. At the beginning of November, the first variety group will come to €10,25 and Innovator to €11,25. In April this amounts to €13,60 and €14,60. End of season, second half of June 2019, ends with €16,40 for the Fontane and Challenger. These prices are exclusive of premiums and apply to the tonnage contract 35 millimeters upwards.
Bintje no longer appears in the company's pick list. "We are consciously phasing out Bintje. The variety has been losing ground within our company for several years," explains Agro Director Steven de Cuyper. "Agristo produces chips for the world market. Bintje is not a sufficiently stable variety in terms of quality, which makes it less suitable for us. Fontane remains our most important variety. Internationally, less attention is paid to the Bintje variety and more to the quality of the end product."
Simple contracts
De Cuyper emphasizes that Agristo is committed to a transparent working method. "We achieve this by communicating clearly to the growers. The joint long-term relationship of trust is our main approach. We therefore consciously opt for simplicity. A tonne contract with fixed prices without a supply obligation. 'Keep it simple' is our motto. That also applies for the quality allowance."
Agristo deliberately does not offer multi-year contracts. "Every year we like to sit down with our growers for a constructive discussion and negotiations. This includes a competitive contract price," says De Cuyper. "A multi-year price agreement may seem attractive one year, but can have a negative effect the next year. It is also important that one price is used for all contracts. Whether it concerns a Belgian or Dutch grower. There are differences per grower or region. not."
Growth in Belgium
In October 2017, Agristo opened a new chip factory in Wielsbeke, near Kortrijk. This location processes 250.000 tons of potatoes annually. "After the start-up in October, the location has now been fully operational for a while. This offers room for additional contract options for the 2018 harvest. The expansion area is focused on the west of Belgium and northern France. As a result, we will see clear growth again next season. The number of growers we work with directly and the volume of potatoes are also increasing."
Price drop for seed potatoes
In 2017, a poor seed potato supply hindered the growth of the acreage. De Cuyper does not expect seed potatoes to be a bottleneck for this season. "The first delivery has already started. At the moment we see no reason for concern about quality. Nevertheless, this remains an annual point of attention. We demand that all parties in the chain take their responsibility for this. The seed potato prices remain unchanged across the board. Where possible, a small drop in price will be implemented."
Volume from country
Like all other potato processors, Agristo also has a lot of potatoes for the remaining season. Ex-country delivery starts 1 to 2 weeks later. "With delivery in weeks 27 and 28, the security of supply of the new harvest is not great. It is always exciting whether the potatoes are available in sufficient quantity. With delivery from storage, this is never a discussion," says De Cuyper. "We can also anticipate the development of quality in advance. It is a trend for the first half of July to focus on preserving the old harvest for a long time. For the end of July and August, a market for early potatoes from the new ones remains. harvest exist."