What does hunger for chips mean for potato cultivation?

Rabobank presented a report on the potato market in mid-July, focusing on the French fries market. This market is growing strongly, although the question is whether the Netherlands can benefit. Author Stefan van Merrienboer (analyst at RaboResearch F&A) and Gea Bakker (sector manager Food & Agri) tell more.

What are the main conclusions from the report?
Van Merrienboer: "Rabobank expects the consumption of frozen potato products to increase, resulting in an additional demand from the industry (until 2022) of 1,9 million tons of ware potatoes. We see that consumption is growing strongly, especially in Asia. Despite a positive outlook we see that Dutch cultivation is reaching its limits."

"There are also challenges in acreage, productivity, soil health, crop protection and fertilizers. However, there are opportunities; for example, a growing demand for French fries can support the price in the long term. There are also opportunities in the field of product quality, cost price, internationalization and broadening."

What are the biggest challenges for Dutch growers?
Bakker: "We think that these are crop protection, sustainability aspects and climate. The consequences of climate change are also noticeable here. KNMI research shows that the heat waves in Europe are getting warmer and the rainfall intensity is increasing. At the beginning of the twentieth century, the average precipitation sum at 695 millimeters. About 100 years later that has increased to 880 millimeters."

"At the same time, the crop protection product package is being curtailed. It is also not easy to meet the requirements in terms of fertilization. Finally, sustainability is playing an increasingly important role. Rabobank will place more emphasis on this, because we want to facilitate the front runners."

All in all, growers face many challenges. What's next?
"The acreage may no longer grow, but companies do. The cost price is leading and that is why it is important to know it well. Financial insight into your company is required. We challenge companies to look more at the added value. it might be good to think about abroad. Dutch processors have now found their way to Belgium and France. Why shouldn't growers go after them? It is possible to rent/lease land there," says Van Merrienboer.

Bakker: "There are also opportunities in alternative sources of income, such as capturing CO₂† With regard to sales, spreading is important in order to be able to work in a cost-effective manner. Various strategies are conceivable, in which a balance between cultivation and expansion of the company is important."

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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.

n.vanderboom@boerenbusiness. Nl

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