Interview 6 questions for Dick Zelhorst
'Growers' efforts should be rewarded'
Aviko Potato's potato pool has had an eventful year with a unique 'all time high' result. However, an annual price level above €30 is an illusion.
Extreme years seem to follow each other faster and faster. This increases the cultivation risks. Nevertheless, Aviko director Dick Zelhorst sees it as a responsibility for the potato processor to structurally pay out a price at which growers can continue to invest. This results in sustainable cultivation that benefits the entire chain.
Big differences
Not everyone goes home with the top prize after last season. The mutual differences between growers in the potato pool of Aviko Potato are huge. In total, 20% less was delivered than expected. Those who could irrigate achieved a reasonable yield. Long-term keepers could thus achieve a result of more than €34 per 100 kilos. This is partly the result of an increased storage fee of up to €8 per 100 kilos.
Also at the to contract Aviko implemented changes this spring. For example, there is a new contract that takes fluctuating cultivation costs into account. These steps are in line with the strategy that the Cosun subsidiary is pursuing. An interview with director Dick Zelhorst about the company's unique position in the potato sector.
You received 20% less potatoes in the pool without presale. Is that entirely due to the drought?
"This lower yield is in line with potato harvest figures throughout Europe. It is purely due to drought. The pool grew by about 5% last year. Our total processing capacity is increasing accordingly. We also started this season with a pool in Northern France. A pilot was run there last season. French potato growers are used to fixed price contracts, but interest is high. What is appealing is that the risks of not being able to deliver are limited. It is not a 'residual pool' with over kilos but a net tonne pool. We will mainly process the potatoes in our factory in Proven (Be)."
The connection between the old and the new crop is now the subject of discussion. Will this be made more difficult by the current drought?
"There are major regional differences in terms of drought. In southern Germany, 25 millimeters have recently fallen. Belgium received more water this spring, but it is also dry there. In the Netherlands, the lack of precipitation certainly affects the early potatoes. tons and the drought and heat are slowing growth. Early harvest is currently being started in the German Rhineland. Due to a good starting position, Aviko has sufficient potatoes. We do not need potatoes from the south of France. It is still too early for the main harvest asked to say something about the yield, after all, it still has to grow. The crops are in good condition on average."
Aviko is part of a cooperative and is thus owned by the arable farming sector. Does this feel like a pioneering role within the potato sector?
"I am certainly of the opinion that we have a responsibility to the Dutch arable sector, which are joint owners. The potato growers' committee (ATC), the delegation of our growers, is our sparring partner in this. It is our responsibility as a potato processor to realize a price for which growers can continue to cultivate and invest in their company on a structural basis. In addition to the pool, this means looking for contract forms that do justice to this. The cost index contract is an example of this. If the cost price rises, the contract price rises. The bonus-malus system for quality, in which the malus has lapsed, and the higher storage fee are other changes in this area. You have to be able to make up for the rising cultivation costs in the long term in the market, otherwise it will stop. Growers can contribute ideas about contracts and potatoes via the ATC selling via the pool, which is unique in our sector.Take themes such as sustainability, the disappearance of k iemremmer Chlorine IPC and haulm killing with diquat. We will discuss this with our growers and make choices about the approach together. Collaboration with our growers is crucial."
Can Aviko offer a higher price compared to its competitors in addition to having more say in the terms and conditions?
"The grower must be able to earn a living, but Aviko must also remain competitive in the market. It is a constant search for that balance. For example, due to challenges in storage and haulm killing. growing costs in Europe are rising faster than in the US. That's where the danger lurks. We operate in a global market. If this does not happen, you will get skewed growth. At the moment Europe produces cheaper than the US, but we have to keep a close eye on the cost price and reduce it where possible. So it is not easy to pay a significantly higher price. The result of the pool has been very rewarding this season. Long-term keepers realize a price that was never achievable in the free market."
Whether you earned anything last season strongly depends on the irrigation options. Should Aviko encourage this?
"Being able to irrigate is certainly an important criterion. We always map this out carefully. At the same time, what the ideal company size is for us is also a factor. Potato growers that grow so large that they can no longer manage the organization pose a risk. How does that work in the This is reflected in the future with increasing scale? This is especially noticeable at peak times such as irrigation or harvesting. Large companies require an enormous amount of people. Medium-sized companies then perform better, as we saw last year. A potato area of 40 to 80 hectares per company is, according to our In my opinion, this is ideal. These are (semi-)family businesses that can usually handle peak workloads. They are also large enough to continue investing in their business. There is a maximum acreage per business in relation to yield and quality."
Climate change or not, weather extremes are increasing. How do you arm yourself against this?
"Extreme weather is a major threat to the potato sector, which increases the risks. In addition to the risk of a crop failure, it results in an increase in costs. As a sector, we must be prepared to take these costs into account. If you don't do this, a grower will not be able to potato cultivation will stop. It must remain profitable. The current situation is different from last year, and the regional differences are also large. The drought seems less acute. Despite these extremes, grower and processor both have to earn a living. Aviko, whereby Aviko's revenues flow back to the arable sector, certainly contributes to this"
Niels van der Boom
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