Seed potato trading house HZPC has set the forecast price for the 2018 harvest. The drought caused huge financial differences, but also resulted in a very favorable market.
The forecast price easily breaks the record of the 2017 harvest year; the difference is €4,50. However, last season did not deliver the highest financial return, as it was even higher in 2010. "The drought has led to major differences in the financial returns between growers," says Lilian Escalon, the European director of HZPC.
Prices greatly increased
However, the extreme year also resulted in a favorable seed potato market. Despite the fact that the yield was on average 18% lower compared to the 2017 harvest and the multi-year average, significant benefits were achieved. "Thanks in part to reasonable demand, we were able to significantly increase prices in a number of markets," Escalon said.
He emphasizes that supply contracts with the processing industry are not included, because these are multi-year contracts with a predetermined price. HZPC has also been able to sell more product than ever before as seed potatoes. Significantly more excess size was sold as seed potatoes, at a favorable price of €23 per 100 kilos.
The average hectare yield is 33,5 tons, including excess size. The seed potato trading house also notes that prices differ greatly between cultivation areas, and sometimes even at plot level.
Price structure
The HZPC price concerns the average over all varieties and qualities (in class S to A). This is for payment of grower's licenses. Storage and packaging fees are not included. The price is ultimately broken down by breed, class, quality and size. For the seed potato sizes there is 1 pool price for all varieties. However, the final price is related to the difficulty level of a variety and the average yield, compared to other varieties.
This sales method ensures that the forecast price sometimes exceeds the actual sales price, especially with French fries varieties. The final price will follow in June, when the financial result has been announced. Last year the final price was increased by €0,90 per 100 kilos.
Record profit expected
For the current financial year, HZPC expects results that are equal to last year, both within and outside Europe. HZPC Holding achieved lower turnover, but HZPC itself expects a possible record turnover. The profit after tax is expected to be significantly higher.