News Drought 2018

LTO round the table with potato industry

23 July 2018 - Niels van der Boom - 27 comments

We can no longer speak of a 'normal' drought. The situation is extreme, LTO Akkerbouw chairman Jaap van Wenum also realizes. The group of growers who can benefit from this is small. The representative says that it follows all developments closely and provides assistance where necessary.

"The drought is often financially beneficial for arable farmers," said Jaap van Wenum on 16 July in a statement interview with Boerenbusiness† Yet he realizes that the group that can benefit from this is very small. "It costs a lot of money for the largest group. The potatoes are often grown under contract. It is becoming difficult to meet the obligations. My estimate of 20% to 25% fewer potatoes now seems on the low side. Where it is not possible to irrigate , for example in Zeeland, the onion harvest is considerably lower, among other things."

Irrigation ban
LTO tries to keep a finger on the pulse when it comes to irrigation bans. "Nationally we have good contact with the Union of Water Boards", according to Van Wenum. "At a local level there is a say when board members of LTO Nederland sit on the boards of the individual water boards. This is how we draw attention to the concerns of farmers."

No reason for a national irrigation ban

"In many places, fresh water can be let in and buffered. Those buffers do not just run out. I see no reason for a national irrigation ban. The water boards look first at the drinking water supply and safety. Agriculture comes in third place."

With industry around the table
If it is up to Van Wenum, LTO will remain involved in the financial settlement. "We are currently monitoring how processors deal with the delivery obligation within contracts for potatoes, but also for canned goods. If necessary, we want to meet with the processing industry to ask for leniency, for example by postponing deliveries so that there are extra growing days. for the crop. We are also looking closely at the pre-delivery of sugar beets. However, it is too early to make firm statements."

The Flemish Minister of Agriculture Joke Schauvliege has knownmade declare the drought in Belgium an official agricultural disaster. This means that the claim file is opened and affected farmers can file a claim. If the damage threshold is reached, those affected are entitled to financial compensation.

Sector doesn't beg
Van Wenum reacts somewhat laconically to the situation in Belgium. The Netherlands does not have a disaster fund. "We are not a sector that begs the government," he responds. "If money is made available at European level, then we want to take advantage of it. The discussion about Ecological Focus Areas comes first. Roughage can now be obtained here in various European countries. Neighboring countries Germany and Belgium have not yet applied for this exemption. For this we consult with the livestock sector. Arable farming may also help by sowing catch crops for livestock farmers to harvest.”

Due to the extreme situation, the Agriculture Department of LTO Nederland now meets on a weekly basis; partly because things are developing very quickly. "We don't know what the high temperatures of 30 degrees plus will do to crop growth," said the chairman. "This partly determines the policy."

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
27 comments
Subscriber
option fog 23 July 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/aardappelen/ artikel/10879380/lto-met-aardappelindustrie-om-tafel][/url]
Now I'm curious what LTO can get out of this drama. We will not be able to fully fulfill our contract obligations, and we have 1000 euros per hectare in extra costs. I think this compensation per contracted ha should be included with my buyer
Subscriber
grows 23 July 2018
Would the promised Mercedes of the LTO pieces of writer still be in it?
Drent 23 July 2018
Read that we also have to provide feed through greening for the livestock, but who will help us now?
Subscriber
the grower 23 July 2018
That greening as undersowing is already drying up in my barley and wheat so if it doesn't rain you don't have to sow greening because it won't work anyway
Subscriber
Werner 23 July 2018
If you look at what LTO has achieved for its members (nothing), then you should not expect anything from it.
DN 23 July 2018
optionmist wrote:
This is a response to this article:
Now I'm curious what LTO can get out of this drama. We will not be able to fully fulfill our contract obligations, and we have 1000 euros per hectare in extra costs. I think this compensation per contracted ha should be included with my buyer

No compensation, last year the contact farmers who had contacted the potatoes as a whole had a great year with us, it was not easy. This year, however, the roles have been reversed and we can fill the gap that was created last year. it would be crazy that there is a compensation for the missed kg's. If you do not fully deliver the contracts, can you invoke force majeure or is this something from the past?
Subscriber
marquis 23 July 2018
Haha, always the same discussion! With a bad year, the farmers who are fully contracted laugh at the free farmers. But if a calamity suddenly occurs in another year, so that the harvest is minimized, should the contract suddenly be breached? Don't be so pathetic, you drew with your full mind! How would you have liked it if the factories had done the same this past season? Please don't be so pathetic and fulfill your obligations. Maybe do a little less on contract next year? But no, next year the contract price will of course go up, and everyone signs again!!!
Subscriber
Diesel 23 July 2018
Is business risk certain? If you sign a contract below cost. Grow your own shed last year empty shed for 5 cents who can I turn to for a supplement?????
Subscriber
tm 23 July 2018
All those rotten rules can be removed nicely...nothing grows, so no greening here either. They just watch it. Now think about ourselves first.

Oh woe, when the NVWA comes to check, the sign goes into the garden. Come on with the patronizing!!
Subscriber
Free Agria 23 July 2018
optionmist wrote:
This is a response to this article:
Now I'm curious what LTO can get out of this drama. We will not be able to fully fulfill our contract obligations, and we have 1000 euros per hectare in extra costs. I think this compensation per contracted ha should be included with my buyer


Nope, contract is contract. If Aviko cooperates in this, I predict that we will have a heated discussion at the Cosun annual meeting.
Subscriber
quite coarse 23 July 2018
LTO should not interfere with this.
Last year they did nothing with the low nature and onion prices, so certainly not now for this market situation.
You're just pitting members against each other.
So LTO, don't interfere then.
Subscriber
willem 23 July 2018
If LTO gets involved, we are doomed, just ask the ranchers. Know young farmers who are almost bankrupt by the know-it-alls of LTO.
glass container 23 July 2018
Very good promotion by LTO It is not for nothing that 70% is a member. All easy to talk about, no contract and all that. I do this to minimize risks. And that is why I am a member of this strong organization.
Subscriber
not 23 July 2018
downright pathetic that whining, they can immediately ask for compensation for me from last year then you didn't hear them let them do something about the clearing of the crop protection but they are not at home
Subscriber
juun 23 July 2018
limiting the risk you have to put them in the pool in case of calamities you just take advantage but yes buy expensive land rent then that is not possible then you are a slave to the bank and the factory and of yourself that is a choice you make yourself you should not now to moan
peta 23 July 2018
LTO should simply let the market do its job. If there are many among their members who have signed such a contract below cost price and have not taken into account the cultivation risks that are always there and have not calculated a margin for that either, then it is high time they opened their eyes to their members. and learn to calculate with entrepreneurial risks!!! And above all, learn that you should not accept the first offer for a false sense of security! The account managers of the banks also bear a heavy responsibility here, they have almost forced customers to conclude contracts after the year 2016 and have not thought about the risks involved! Their "customers" are now stuck with the baked pears, partly because of them! You should never rely on your advisors! Set your own goals and not be satisfied with every dime because then you will never get euros.
Subscriber
juun 23 July 2018
correctly worded dude
gerard 23 July 2018
lto is a club for livestock farming not for the vegetable club
Zeeland farmer 23 July 2018
This is how LTO is now sitting around the table with the processing industry. They could have done it sooner for contract prices that are far below cost, but then they are not at home. And if they have the guts, they knock on the door of the ministry for compensation because the green rascals have to make all freshwater brackish water again and let them see how we can get fresh water in some polders.
Berry 23 July 2018
@ Vrije AgriaA lot of people keep their mouths shut at Cosun's annual meeting. This year will be no different....
Subscriber
Telerx 23 July 2018
LTo directors are without vision and will have signed contracts themselves. That is the only reason for them to sit down. Meet farmers who fill their pockets and now cry that they can't figure it out.. they are anti entrepreneurs..
new 24 July 2018
No compensation for the contract farmers. they sign themselves and have caught more than the free-growing farmers in 2017!!!
Subscriber
smart ass 24 July 2018
Just compensate all farmers! And every full farmer for the same amount. 45% of the farming families live structurally below the poverty line. For which because the government wants Jan and everyone to be able to go on holiday 2 * a year! Except you ordinary peasants. We are suckers. Stand up for the total interest of the farming sector. Or let you milk yourself out even longer. Losers.
Klaiboer 24 July 2018
We will get our compensation again at the end of the year. For an average agricultural company, that is the annual income of an ordinary working citizen. And that for a few hours behind the computer.
Skirt 24 July 2018
Total nonsense, that is a tip as compensation for grain cultivation, etc. below cost. The revenue model in our sector is far below standard, certainly compared to other sectors. If you already have to count with unpaid labor to cycle around the picture, it is a very unhealthy situation. The return is purely and solely due to an increase in the value of real estate, if you are a tenant you end up with a heavily underpaid company.
Peter34 24 July 2018
Only what counts as force majeure under general law can be deposited with the buyers. For example, in not having to deliver an agreed quantity.
Fries are not a basic necessity of life, are they?

I don't think that some of the above comments show some gloating/smugness.
joker 24 July 2018
The LTO has often visited The Hague, and has elicited statements there that will make your hair stand on your head.

In any case, few matters of significance that were positively pronounced by the judge.

Now the LTO is always with the same Lawyer, and I have also seen him doing things with people in my environment that made me wonder whether he was now working for the government, or for his client.... ......!

In my opinion this explains exactly why so few cases are won by the LTO, but it could be just me.
Subscriber
expert wretched 24 July 2018
Klaiboer wrote:
We will get our compensation again at the end of the year. For an average agricultural company, that is the annual income of an ordinary working citizen. And that for a few hours behind the computer.

45% of the farming families live structurally below the poverty line, this includes your subsidy and your wife's wages. And yes it is gross and this wage is around 23.000 euros klaiboer. Don't say something you don't understand.
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