The German potato trading house Weuthen is monitoring the price reductions that the Dutch and Belgian processors are implementing in their new contracts. However, cheaper seed potatoes partly compensate for this reduction. The price remains the same for a multi-year appointment.
Last year, potato trading house set up shop weuthen from Schwalmtal (North Rhine-Westphalia, Germany) fully focuses on it early segment. This year, during this delivery period, there is the least demand for potatoes. Concluding land-based contracts is only possible this month.
The large availability of potatoes from the 2017 harvest is the reason for this. "This is entirely at the expense of very early cultivation under plastic and pre-germinated potatoes," explains Weuthen director Ferdi Buffen. "We are losing this segment to the old crop."
Cheaper seed potatoes
For the main harvest of chip potatoes, delivered dry from the shed, Weuthen reduces its prices across the board by €0,75 per 100 kilos. "This decrease is partly compensated by seed potatoes. Prices will drop by approximately €250 per hectare," says Buffen. "Anyone who signs a 3-year contract will receive the same price as last season. This also has to do with the seed potatoes. With multi-year agreements we can purchase our seed potatoes more competitively."
The seed potato shortage in 2017 not only caused prices to rise. The potato company was also forced to use alternative new varieties. This will be reversed for the coming season. "Our customers ask for the standard varieties. For chip production, these are Zorba, Fontane, Challenger, Markies, Innovator, Lady Anna and Agria."
Organic contract farming
Weuthen does need expansion in the potato chip business. The company aims for 15% growth in area. The contract prices are slightly corrected. "The cultivation of potatoes for the chip industry is interesting for growers who want to specialize. For the first time, we are starting the contract cultivation of organic potatoes for the processing industry. It looks like we will fully fill the desired area."
Weuthen offers a pool contract with a bottom price for potato growers in Limburg and North Brabant. This price will be reduced by €2018 per 0,50 kilos for the 100 harvest. Here too, lower seed potato prices with a price advantage of €250 per hectare partly compensates for this.
Equal area
Buffen does not expect any major changes in the German potato area for the coming season. "Perhaps the area of early potatoes for field delivery will decrease slightly. I think the main harvest will remain the same as last year. Alternative crops do not offer a better price, so arable farmers will stick to potatoes. Like the rest of the EU-5, Germany had a large harvest "If the hectare yield drops by 10 tons per hectare towards the average, the situation will look very different again," he concludes.