Like all potato processors, McCain is also increasing its fixed price contracts for the 2020-2021 season. In addition to a cost price increase – as a result of the adjusted resources policy – drought has dominated the past 2 harvest years.
Due to the disappearance of the germination inhibitor CIPC and the foliage killer Reglone, cultivation costs are increasing. Pieter Jan Georgius (Senior Director Agriculture): "To keep all varieties attractive, we therefore implement price changes, depending on the variety and the time of delivery."
Increase after February 1
In the early ex-field segment (July and August), the processor implements a price reduction of an average of €0,75 per 100 kilos. For the main harvest, the price remains stable until February 1. Then prices rise. For Fontane this means a plus of an average of €0,20 to €0,85 per 100 kilos. Innovator receives an average of €0,45 to €1,40 across the board. Hansa, which is grown for Cêlavíta, also receives a price increase. This will be paid out from November 1.
"The greater increase at Innovator has to do with the past 2 seasons," Georgius explains. "Due to drought, the yield of this variety has come under pressure, while Fontane is dealing with this better. Because long potato varieties are a very important segment for McCain, we are placing more emphasis on this."
main crop
At the start of the main harvest from the field, McCain pays a Fontane price of €10,25. In week 17 (end of April) that is €14,34. In week 26 (end of June) this increases to €17. The prices mentioned apply for delivery 40 millimeters upwards. All prices mentioned are exclusive of quality premiums.
The range of contract types remains unchanged. In addition to the fixed price contract, these are the min-max contract, futures contract and PPS (Personal Pool System). Multi-year contracts – for 2 or 3 years – are encouraged with an extra premium. Seed potato prices are stable across the board and comparable to last year. The variety package remains the same, with the emphasis on the long varieties. McCain also offers a premium for storage in mechanical cooling. The surcharge for loading on Sunday has been increased from €1 to €1,50 per tonne.
Gain experience
"The theme for the coming season will be storage," Georgius summarizes. "We adjust our pricing accordingly. Last season there was a clear need for more volume early in the season. Now the situation is different. There is pressure from potato quality, but the potato volume is available. As an entire sector we need to gain experience and make a concerted effort with the disappearance of CIPC and diquat.”
"McCain will therefore share as much knowledge as possible. Where necessary, growers are supported in storage. In turn, growers must do their utmost to clean sheds. A cleaning protocol follows for this. The Vavi has been committed for a number of years - partly through the European advocacy group EUPPA – for the CIPC dossier. We therefore hope for a workable T-MRL."