The Dutch Arable Farming Union (NAV) and United Growers Arable Farming (VTA) have the ambition to unite about 2021% to 20% of the Dutch ware potato area before harvest year 30. On 7 January, the NAV gave text and explanation about the Producers' Organization for Consumable Potatoes (POC).
It works together with VTA. It is not the first time that both the NAV and VTA have taken steps to unite potato growers for joint representation of their interests. Changes in European and Dutch legislation have given producer organizations (POs) much more freedom. because of this decided the NAV to start working with a PO for consumption potatoes again.
Start of harvest year 2021
It is no longer possible to set up the POC for the 2020-2021 season. “Things have been delayed due to the wet autumn. It also takes time to get everything through the ministerial mill,” explains NAV board member Keimpe van der Heide. “Contracting for the 2020-2021 season has now started. We are focusing on the 2021 harvest year. Everything is in the starting blocks. The deed of incorporation, articles of association and an action plan are there and we have enough members to start.”
He emphasizes that the POC is not reserved for the NAV, but that it is an independent association. “The VTA is working with us and discussions are being held with LTO Akkerbouw,” he says. “We also hope to get them on board. When we submit our application, the POC can be there fairly quickly. Within about 3 months.”
| Jaap van Wenum: 'Negotiate conditions per processor' |
| LTO Arable Farming chairman Jaap van Wenum sees opportunities for the POC, but also has his reservations. "It is positive that the POC is committed to grower interests, but I do not think that there is a need for a third party in addition to LTO and NAV," he says when asked. "If the POC does not bundle sales, what is their added value? I see negotiation about contract conditions happening more per buyer. Aviko Potato has a grower organization (ATC), but the non-cooperative parties do not. I see added value for producers to organize themselves. With more participation and cost-covering contract prices, parties can make the difference. LTO also sits at the table with the Vavi and the NAO to discuss these matters in a national context.” |
20% to 30% area
In order to be seen as a serious discussion partner by buyers, the initiators hope to have as many affiliated growers as possible. A minimum number is not mentioned, but past experience shows that 5% of the consumption area is not enough to make a difference. The POC wants to combine between 20% and 30% of the consumption potato area. You are then talking about an area between 15.800 hectares and 23.700 hectares. The POC focuses solely on potatoes for consumption, and in particular French fries potatoes.
Since the start of the FOUNDATION In October the POC board had consultations with the four major Dutch chip producers, as well as seed potato trading houses and potato pools. “Their attitude towards the POC differs,” Van der Heide explains. “Some processors see more benefit than others. A general picture is that buyers see one organization as an advantage when discussing cultivation conditions. For example in the field of sustainability. There were very different reactions to the idea that the POC would become involved in the seed potato supply.” When all participants in a potato pool become members, it gives the organization an enormous boost. That's what it hopes for. Pool managers cannot become members because non-growers are excluded.
Do not arrange sales
Van der Heide emphasizes that the POC does not want to regulate sales, as was the case with previous initiatives. “Growers know which sales method and buyer suits them best. The European legislation for POs lists 10 key points that an organization may focus on. All 10 are appointed in the deed of incorporation. Ultimately, the members determine, through the AGM, what the focus will be on. This could be the contract conditions, seed potato availability or even regulating the area. The new Omnibus Directive makes this possible. Another idea is that problem parties are removed from the market at an early stage in a POC context. This way they do not remain hanging above the market and negatively influence the price.”
Making international agreements
Because the potato processors are active internationally, the POC also sees a broader role for itself. It has held discussions with NEPG, REKA-Rheinland in Germany, PCA/Fiwap and ABS in Belgium and France's Le Gappi (Groupement d' Agriculteurs Producteurs de Pommes de Terre pour l' Industrie). This growers' organization has 800 members. “If they also take steps to set up a PO, it will be possible to make mutual agreements at an international level,” says NAV chairman Teun de Jong. “For this purpose, a Union of Producer Organizations (UPO) must be formed. “There is solidarity in Germany and France. Belgium is a freer area. Ultimately, we hope that consumer potato growers in the entire HAFPAL area will unite. The Dutch POC serves as a test case. Everyone is watching us closely.”
The time to recruit members has now arrived. Potato growers are currently considering the cost price for the coming season. NAV's multi-year cost price calculations show that this increases on average by 3 cents per kilo. In addition to an increase in collective labor agreement wages, this is the result of higher costs for foliage killing (loss of diquat) and germination inhibition (loss of chlorpropham). The question is whether this cost increase is compensated by the contract prices. A first signal is negative.
Competition remains
“The first thing is that we collectively want to improve the yield of cultivation,” De Jong emphasizes. “This can be done by collectively negotiating the conditions as potato growers, as is done in the US.” “A PO may do anything to achieve its goals,” Van der Heide adds. “The European Commission will test this upon request. If actions prove to be contrary to the law, there will be no consequences afterwards. Competition must remain present in the market at all times, that is a requirement. Membership is expected to cost around €100 per grower. No distinction is made in the area per grower. The members jointly determine which goals the POC will pursue.”