The Chinese potato sector holds great promise for European potato companies. The British seed potato sector has succeeded in opening doors for the export of seed potatoes. However, not everyone is convinced that this will bring about major changes. It is mainly seen as symbolic politics.
The British government organization AHDB and the Ministry of Agriculture Defra have been in discussions with the Chinese government for over 10 years to allow the export of seed potatoes. And, as of 2019, this is the case. This deal is part of the strategy to explore new, distant destinations: mainly for Scottish seed potatoes. It also wants to increase volumes to Egypt and Morocco.
Great promise
The United Kingdom exports approximately 100.000 tonnes of seed potatoes annually, 70% of which is grown in Scotland. The UK hopes that the deal with China will benefit greatly, as the country has the largest potato consumption in the world. According to export manager Rob Burns, the demand from China is mainly for chip varieties and varieties for chip production. It is now up to the trading houses to profile themselves in the country and build relationships.
In theory, Dutch trading houses such as Agrico and HZPC can also export seed potatoes under the British flag via their branches in Scotland. In addition, there are a number of British seed potato trading houses with a Dutch subsidiary; Caithness Potatoes and the Irish/British IPM Potato Group.
No added value
Yet the Dutch are not immediately eager to start exports to China. "I think the Netherlands has been allowed to export to the country for several years," says Agrico director Jan van Hoogen. "The requirements are so extreme that it is almost impossible. After a number of attempts, everyone stopped. Agrico tried to export 2 containers. That took so much energy and ultimately turned out to be nothing. Testing the batch cost more than the shipment was worth ."
Gerard Backx, the director of trading house HZPC, agrees with Van Hoogen's story. "Exports to China are very small, if not nil. The import requirements are high. We are not going to organize an export if we are not sure that the batch will be accepted. Mini tubers have been exported from Scotland to China and also from the Netherlands for some time now. "
Difficult situation
Backx sees opening the border for British seed potatoes as a smart move for Chinese politics, but he believes it remains practically impossible. Dutch trading houses are therefore mainly active in the country itself, but this route also has many obstacles. China remains difficult for trading houses to conquer, as we wrote earlier analysis about this market.