News potato chips

Lay's: smaller chips due to extreme drought

3 September 2018 - Anne Jan Doorn - 7 comments

PepsiCo Netherlands says they expect the chips in Lay's pockets to be smaller in the coming months. The organization talks about a situation that it has not experienced before in the past 40 years.

The chips brand Lay's is forced to buy part of the potatoes it needs on the free market. This is because PepsiCo's permanent group of potato growers have indicated that the drought and heat have ensured that fewer and on average smaller potatoes will be harvested.

Buying in expensive market
Due to the drought problem, PepsiCo has to buy potatoes in a market with high prices. Consumers will see the repercussions as the chips in the bags are likely to be slightly smaller than usual.

Earlier, the Belgian chip manufacturer Roger & Roger, known for the Croky brand, among other things, already made it clear that the range being curtailed† The prices for chips of the Croky brand will also rise.

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Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.
Comments
7 comments
chips from Lidl 3 September 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/aardappelen/ artikel/10879822/lay-s-kleinere-chips-door-extreme-drought][/url]
can PepsiCo also indicate how small the chips will be?
Seems to me to be very useful information for potato chip growers. Then they can make a choice when harvesting which pitch mats should be placed on the harvester.
And they can then negotiate with the customer what will be paid for the "undersized"! As a grower, I would in any case not just give it to you
joker 3 September 2018
chips from Lidl wrote:
This is a response to this article:
can PepsiCo also indicate how small the chips will be?
Seems to me to be very useful information for potato chip growers. Then they can make a choice when harvesting which pitch mats should be placed on the harvester.
And they can then negotiate with the customer what will be paid for the "undersized"! As a grower, I would in any case not just give it to you


Everyone has to do it in their own way, but it is striking how contract growers are suddenly negotiating at the moment.
Never negotiated and just signed contracts and now the business qualities are emerging.
Contracts are therefore also subject to market forces and this is also part of it: at high prices no kg and if then contract no balance per ha.
And the under-sizes really won't make a difference.
Berry 3 September 2018
They can negotiate what they want, but that really means no potatoes this year
Island 3 September 2018
they normally don't take the undersize, so you often sell it yourself for animal feed now in flakes or something and of course cattle farmers are also allowed to bid
Subscriber
smart ass 3 September 2018
in such a bag contains 200 grams
that is 150 grams of potato, the rest is oil and fat and salt
is not even 5 cents because they have most of them on contract.
now they have to buy something extra for 30, then such a bag can contain 6 to 7 cents of potato, but they just make it a quarter more expensive.
folklore
Island 4 September 2018
just like the fries 100 grams in one container so 1,2 cents potato and last year one fries did not cost a quarter less due to the abundant harvest
Subscriber
quite coarse 4 September 2018
Tray of fries is usually 200 grams and around 350 grams of potato is needed, so about 5 ct of potato, still a joke by the way.
Hope it goes to a quarter.
Subscriber
sjappie 22 September 2018
How can all the kg have already been bought from the factory, or is it such a cheap contract, that the factory is still being kept in good graces friends' politics. For them win win
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