Fear costs Dutch potato grower money

According to Maas, the farmer's psyche determines how full the farmer's wallet is. In an analysis he explained that you can even earn more with bingo than with a fixed price contract. A pool in particular clearly yields more than a fixed price contract. He compared the prices of the different sales methods for sales on delivery in week 17.

Fixed price contract yields less
“The average sales price of a pool without pre-sales over the past 10 years was an average of €15,98 and the average sales price of the Boerenbusiness bingo in 10 years will be €15,57,” said Maas. “The average PotatoNL quotation over the past 3 years is even €17,75, while an average permanent contract over the past 5 years amounts to €13,50.”

Maas concluded that free potatoes or potatoes in a pool yield €2,50 per 100 kilos more. “If you assume that the average potato grower has 20 hectares of potatoes, he will miss out on €50 per year with an average yield of 20.000 tons. Over several years, such an amount will increase considerably.

Dutch growers cautious
“Why do growers still choose fixed price contracts?” Maas wondered. He stated that guaranteed sales are the most important reason for growers to enter into a permanent contract. “A large number of growers also try to play it safe by opting for contracts.” According to Maas, the fact that most growers opt for a fixed price contract means that most Dutch farmers are cautious.

“But the fear of bad years is unfounded because there are always opportunities to sell the potatoes. In most years there is a moment when the potato futures market peaks and when you can hedge potatoes at a good level.” In addition, Maas calculated that long-term storage of potatoes can in many cases be very successful on the open market.