HZPC discourages the cultivation of oversized seed potatoes

Seed potato trading house HZPC will pay a forecast price of €2017 per 30,75 kilos for the 100 harvest. This price is slightly above the 7-year average and therefore exceeds previous expectations. Last year the payment price was €2,40 per 100 kilos higher, the highest price in 10 years. The forecast price includes the average over all varieties in pot size class S to A, excluding VAT and before payment of grower's licenses.

Stable seed potato prices
Lilian Escalon, director of HZPC Europe, cites the moderate European consumption market as a reason for a lower demand for starting material. Sales prices have remained stable, causing the forecast price to be higher than previously thought.

The total hectare yield was higher for the 2017 harvest, but 3% fewer potatoes were delivered in the potato sizes (compared to the 2016 harvest year). The gross proceeds are equal to the 5-year average. The yield in the pot sizes is 5% lower. The trading house cites the conditions during the growing season as the cause. "The start of the season was dry, which meant less tuber formation," explains CEO Gerard Backx. "Later it started raining and growth started well. However, the tubers had already formed by then."

A low tuber number ensures the highest percentage of excess sizes ever. The payment price for these sizes and the market situation for consumption potatoes ensure a negative financial return. HZPC pays out €5 to €8 per 100 kilos, depending on the variety. Last year this was still €14 to €17 per 100 kilos, which amounts to €16 on average compared to €6,50 this year.

Discourage excess
"By adjusting the payment prices for upper sizes, we want to encourage the cultivation of lower sizes for the 2018 harvest," Escalon explains. Backx confirms that it has a 'discouragement policy' to grow excess sizes: "To some extent a grower cannot do anything about this, and to some extent he can. We should not encourage the grower to grow a lot of excess sizes. Seed potato growers can decide to grow more potatoes. to plant and grow a larger number of tubers per meter. Most of them already do this."

Backx: "Controlling the growing season is also very important. Remember not to fertilize too much and kill it in time. The latter is relatively easy when many tubers have the same size. If you have both small and large tubers, it is difficult to determine the correct size. choose the right time. Ultimately, you mainly have to guide growers with the payment systems. After all, everyone strives for their own financial optimum over the years. This is very normal."

Cut more
HZPC can sell some of the upper sizes as seed potatoes. This is mainly the case for chip potato varieties; This segment has proportionally more upper sizes. Some of it is cut by the growers before planting. The low consumption potato prices are also causing more 'farm saved seed' (own seed potatoes) to be planted next season.

If the area for consumption potatoes remains the same, this means less demand for certified potatoes compared to a year with high prices. Because the average seed potato yields are lower, the market remains in balance. The chip potato varieties in particular show a lower yield compared to the long-term average. "Broadly speaking, we assume that in a year with low consumer prices, the seed potato market will shrink by 10%. In a year with very high prices, the market will grow by about 10%," Backx explains.

Seed market
HZPC says it is satisfied with the seed potato market in Africa and the Middle East. However, in absolute tonnes, slightly less was sold. The market share was maintained. A higher availability of seed potatoes at the start of the season made the difference for HZPC. The low consumption potato price in Southern Europe means that the fresh market demands less seed potatoes. The season remains at a good level across the board as far as prices are concerned.