News Drought 2018
75 million euros in extra costs due to irrigation
Where possible, potato and onion growers have been irrigating for weeks on end. Allowing the crops to dry up is simply not part of a farmer's nature. Irrigation is not only an attack on your life, because it also costs a lot of money; especially in a season like this. It remains to be seen whether farmers will see something of this in return.
The costs of irrigation differ greatly per company. What equipment do you use, is it a source or surface water and do you count labor or not? Realistically, for 1 time irrigation of about 20 millimeters you quickly lose €200 to €300 per hectare. Most growers have now watered their potatoes about 4 times, although that varies from 1 to 7 or 8 times.
1.500
euro
cigar box
A calculation on the back of the proverbial cigar box shows that with 4 irrigation rounds €1.200 per hectare in additional costs was incurred. There will be at least 1 more round, given the weather forecast. That means: €1.500 extra cultivation costs per season.
It is not known how many hectares can be irrigated in our country. In 2011, CBS estimated that 25% of Dutch agricultural land could be irrigated. However, in 7 years the surface area increased by 35%, accounting for 125.000 hectares. The possibilities increased, especially in the arable regions with clay soil. In North Brabant and Limburg, a lot of rain was already being irrigated. The arable areas along the Wadden coast and in Zeeland stand out in a negative way. Relatively little is also irrigated in the east of the Netherlands.
More rained
Statistics Netherlands has not compiled any new figures since 2010. It is logical to assume that the percentage that can be irrigated has increased, with exceptions, for example, due to saline seepage or brown or ring rot infestation.
It is estimated that 50% of ware potatoes are irrigated. Our country tent this year 77.150 hectares of ware potatoes. We are talking about 38.575 hectares. Multiply €1.500 additional costs makes a small €58 million in costs. If we add 33% of the onion area for the sake of convenience (11.733 hectares), you are talking about another €18 million and the total extra costs for both arable crops already exceed €75 million.
Costs incurred
Those extra costs are not the immediate problem, apart from your social life and the attack on your family. With an average potato price of €20 per 100 kilos, 7.500 kilos of additional yield is needed to reach break-even. However, the question is whether companies will achieve this. In onions it's a different story.
A fact is that 80% of the acreage for ware potatoes is fixed and grown on contract, in a pool or otherwise already has a buyer. In many cases it concerns a tonne contract per hectare, whereby 40 tonnes is usually used. If you manage to harvest 47,5 tons per hectare, then you are just out of the costs. However, that is not the case for everyone this season.
The realistic, yet sad picture of this season is that the 40 tons per hectare is a noose for the grower and not a pot of gold. We are not even talking about fulfilling obligations. In the Netherlands, growers can invoke force majeure. In Belgium this is often not possible.
Potato contracts
Critics, of course, mention the entrepreneurial risk and the fact that growers have signed the contract themselves. Where does risk end and disaster begin? In Germany there is talk of aid running into billions of euros. Money is also available in Belgium. Dutch politicians keep aloof. This was emphasized by Carola Schouten, Minister of Agriculture, Nature and Food Quality, this week yet.
The question now is whether 2018 will serve as an 'eye opener' for the coming years. It's an entrance to the contracts keep it under the light. Dutch and Belgian interest representatives advocate this. In addition, the arrival of more climate grills must be taken into account. In addition to a good trencher and erosion-limiting measures, investments in irrigation are also required. For the new season, good intentions are often quickly forgotten. Especially when the rain falls in abundance.
Niels van der Boom
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