There was no lack of discussion at the biennial potato trade fair Interpom Primeurs in Kortrijk. In addition to the exceptional 2 growing season, there is much talk and speculation about the contract prices and conditions for 2018. Processor Clarebout is the first to publish its price for the early potatoes.
Update 28/11: Earlier this article incorrectly mentioned different contract prices for Clarebout Potatoes. These have been adjusted and supplemented.
In addition to mechanization and suppliers, this edition of the Interpom mainly focuses on the fixed price contracts for the 2019/2020 season. How much is the price increase? Is seed potatoes sufficiently available? What conditions are imposed? These are frequently asked questions.
Contract price Clarebout Potatoes
The largest Belgian fries producer; Clarebout Potatoes was the first potato processor to announce a contract price at the Interpom. This applies to 'farm chip potatoes', delivered from week 28 (July 8 to July 14). In the first half of the week, Clarebout pays €18 per 100 kilos and in the second half €17 per 100 kilos. In week 29 the price drops twice by €2 per 1 kilos, ultimately ending at €100 per 36 kilos in week 2 (September 8 to September 12).
The contract price for the Amora variety applies from week 28 to week 30. They then switch to the Sinora variety and from week 34 onwards it is the Santé variety.
Clarebout could not be reached for a response to the prices mentioned. According to the insiders Boerenbusiness spoke, prices have increased by €2 per 4 kilos in the first 100 weeks (compared to the 2018 harvest). In 2017 paid the company still had an ex-land price of €11 per 100 kilos in mid-September.
Details about the contracts are not known. It is stated that the maximum contractable volume per hectare will decrease to 30 tons, while previously it was 40 or even 50 tons per hectare. The contract prices for the main crop of French fries potatoes are not yet known. At the Interpom, a price increase of approximately €2 to €2,50 per 100 kilos was taken into account.
Significant price increase
De fixed price contracts The 2018 harvest saw the largest decrease: between €0,70 and €1,50 per 100 kilos. Upon delivery week 17 and the end of June, the price did show a decrease, but in most cases not more than €0,60 to €0,80 per 100 kilos. The price increases mentioned for the 2019 harvest are therefore a significant increase compared to previous years.
This does not mean that Belgian and Dutch growers receive the messages with joy. There is a need for stability instead of strong price fluctuations. In addition, there are also fears of a significant area expansion. There are still opportunities in Wallonia, but especially in Northern France. The availability of seed potatoes largely dictates the acreage. No contract, no seed potatoes, that's what it sounds like on the Interpom.
Call for resistance
The Belgian interest group General Farmers Syndicate (ABS) has already made itself heard several times this year about the contracts. Chairman Hendrik Vandamme speaks of stranglehold contracts. Just before the Interpom, his words were strong published in members magazine 'De Drietand'. "Perhaps the acreage should be significantly reduced, so that the balance turns negative. Why not skip potatoes for a year?" he suggests.
Even though all processors say they want to be a partner of the grower, this is not felt that way. In the Netherlands, factories aim for multi-year contracts, which include a plus in the price. However, Belgium sticks to the 1-year fixed price contracts, with a fixed tonnage per hectare. The lack of a force majeure clause, as in the Netherlands, is lacking in Belgium. "The new contracts do not show an ounce of respect for the grower," said Vandamme. The conditions against which ABS and Boerenbond have 'fought' this season remain in place.
The processors remind advocates and growers that farmers sign with their full understanding. "That is too simplistic," Vandamme writes. "Only a contract in which both parties are considered equal partners provides a future for all parties."
Looking for primeur cultivation
While the chip factories are running at record speed, a difficult puzzle is being worked on. This was emphasized once again during the Interpom. Belgium is missing 1,5 million tons of potatoes, making the importance of the 'field harvest' crucial. There is a worldwide search for early chip potatoes.
In addition, the processors are active in Southern European cultivation areas; a well-known growing region is Bordeaux, in the south-west of France. Even Belgian potato growers see their opportunity and rent land here for contract cultivation, as insiders say.
The 2019/2020 season still has many uncertainties and open endings. Will there be enough precipitation this winter to make up for the shortages? What influence does the seed potato supply have on the acreage, and do growers accept new contracts? The recording of the main harvest has yet to start. That is why it is too early to make any firm statements.
Conclusions potato season 2019/2020: