While presales paid off after the 2017 harvest, the opposite was true last season. Flevopool's Variopool offers the option of fixing a free percentage, so that growers could benefit. This choice also ensures a very variable result among the participants.
In the Variopool, growers can record a percentage of 0% to 30% of their area in hectares at a fixed price. It lays a foundation for the potato season, which in season 2017/2018 turned out well. During the 2018-2019 season, the highest prices are achievable for those who did not commit anything. Flevopool growers are once again satisfied with the past harvest year and on average have achieved further with the Variopool than opting for a tonnage contract with a piece of free or pool, according to the sales association.
Not worth pre-selling
At 0% fixing, the price for Agria in week 13 will be €28,89 per 100 kilos. This price applies to category II, for which a €1 surcharge is paid. Lady Anna comes to €13 in week 27,86 and Fontane to €26,86 in category I. According to Flevopool, this results in participants realizing an average balance of €12.168 per hectare for Agria and Markies in the size 35 millimeters upwards. When contracting for the pool, the grower indicates the percentage he wants to commit to cover the price risk.
“It is difficult to determine an average for last season,” explains outgoing chairman Jan Dirk Tonkens. “The differences per grower are enormous. This has to do with yield and quality. For example, lots with perforation were disposed of early. The yield was lower and quality was also an issue. We have closely monitored the quality and anticipated this, to prevent problems with pressure points, for example. This prevented disappointments. The sales season helped with this, because it was much shorter than usual. We started late and finished early.”
Long term counts
The average yield across all growers and varieties is more than 45,5 tons per hectare. This volume is distributed in a staggered manner by regular sales partner Q-potato from Lemmer. “We cannot gamble with sales. If the tons are disappointing, you will always have sold too much early in the end,” Tonkens knows. “Also in such a year we opt to sell Arctic potatoes on the futures market. This had a negative impact on the pool price last year, but ultimately it is simply hedging potatoes early, well above the contract price. You have to look at the long-term result. We try to achieve a good price year after year, not just once.”
Flevopool has completed its eighth season. The pool chairman looks back with satisfaction, but now it is time for an update. “After an initial period you get a period of consolidation. Therefore, we believe that an update is required. The aim is to increase the balance among our participants. Changes will be implemented for the 2020 harvest year pool. We are not going to change the rules of the game halfway through the season.”
Double on its side
The potato crops are in good condition on average, but underground is a different story. "We notice that it is very dry," says Tonkens. "The structure, also at the bottom, is very beautiful. This means that the soil dries out quickly after irrigation. Recent rainfall does not make any difference. Everything depends on what happens at the end of July and in August. Is it then it is hot, then the crops quickly fail. Due to a cold and poor spring, there are few numbers. The potatoes have started to form tubers out of misery. If the weather is growing, a good yield can still grow. Nor should we forgot that the last season lasted 11 months. Now it is 13 months, for which there must be enough potatoes. That is why it is a double whammy."