Last year McCain showed a clear growth ambition in the tons to be contracted. This need has now been amply met. The prices for the 2018/2019 season will be adjusted downwards. The need is smaller, especially in the off-land period. Long storage in chests is extra rewarded.
Potato processor McCain will also start delivering French fries potatoes later next season. The current stock is large. "Every week that we start the new harvest later, 2% fewer potatoes are required. This means the need is smaller," says Procurement Manager Mark Zuidhof. "This applies to the ex-field segment. We keep the volume the same for the main harvest last year."
Other breeds
In the ex-field contracts, McCain implements a price reduction from €0,50 to €0,75 per 100 kilos. For dry from the shed it is €0,30. The varieties in Fontane's group are reduced by €0,70 per 100 kilos. The CêlaVíta varieties are on average €2018 lower per 0,50 kilos in 100. "Growth in the area of the Fontane group remains stable," Zuidhof explains. "Next season we will again expand the Royal variety. It produces a good yield and high yield. The Daisy variety is also growing in area. This potato excels in length and yield. The Bintje variety is grown considerably less."
McCain pays ex-land for Zorba and Innovator €10 per 100 kilos, 40 millimeters upwards. Agria comes at €9,75 per 100 kilos, 30 millimeters upwards, and Hansa at €9,25 per 100 kilos. The Hansa also covers the full size range from 40 millimeters upwards. Dry from the shed in week 17 (end of April) Agria costs €14,50 per 100 kilos, Innovator €13,92 and Hansa €13. At the end of June this is €15,93 for Innovator and Agria is €18,28. The Agria price at the end of June is delivered from crates excluding any premiums.
box storage
From May, the processor will pay a so-called 'box price' for potatoes stored in a box storage facility. The long-term storage potatoes for CêlaVíta are always stored in boxes. Zuidhof sees a change among growers. "Arable farmers are increasingly switching to storage in boxes. In addition to a higher price, they also receive a higher quality premium, because they simply deliver better quality from boxes."
Premium
Various incentives can be received at McCain. These depend on the quality of the potatoes delivered. Matters such as length and underwater weight are not covered by the premium scheme, because they are difficult to control. These are more seasonal or breed traits. "The frying color is no longer a major item these days because the range of varieties has improved greatly," says Zuidhof.
It is possible to contract 20 to 45 tons per hectare for a fixed price. For the ex-field period, a premium of €0,50 per 100 kilos applies, on top of the fixed price for a minimum of 40 tonnes of fixed price per hectare. Dry from the shed you will receive that premium above the 30 tons fixed price per hectare. For the excess kilos, McCain offers their mini/maxi contracts, the PPS contract, Futures contract or sales based on daily price. The contract conditions remain unchanged. The company does charge weighing costs, but according to Zuidhof these are minimal.
Personal pool system
The number of participants in the personal pool system (PPS) has increased considerably in recent years. Zuidhof also expects further growth in the number of participants for 2018. "Due to the low daily market, the PPP contract is unfortunately not cost-covering for the grower at the moment, but the participant is also not reaching the absolute bottom in the market." Multi-year contracts are negotiable, but the buyer sees particular interest in this in years with a high market price.
In 2017, the processor kept its seed potato prices stable. This will also remain the case for the 2018 harvest. The prices are therefore the same as in 2016. The share of Royal and Daisy is growing. "We also have a number of promising varieties in the pipeline this year, but they are not yet used commercially," says Zuidhof. "We are continuously looking for varieties that yield higher yields and better returns."