Growers of French fries who have suffered from the consequences of the corona crisis can receive up to €6 per 100 kilos of compensation. A maximum compensation of €150.000 will be paid per company, according to a draft compensation scheme from the Ministry of Agriculture.
This concept is now spreading like wildfire through the potato sector. It is forwarded to each other and is also available to the editors Boerenbusiness landed. The scheme makes it clear that the minister applies a compensation period from March 16 to August 31 of this year for the fries potatoes that have lost their final destination as a result of the corona crisis. The application for compensation can be submitted in the period from May 11 to June 8, 2020. Minister Schouten first appointed RVO to implement the scheme,
After submitting the application, a grower receives an advance of 30% as compensation. This will ultimately be settled with the final compensation. For the application, the grower must provide a nice list of dates and statements regarding the batch of French fries potatoes. For example, it must be indicated how many French fries potatoes were still in storage on Monday, March 16, and an estimate must be provided of the quantity of French fries potatoes per plot that cannot be delivered to the potato processing industry in 2020.
Generic discount if exceeded
Growers must also provide a statement that the chip potatoes for which compensation is requested have not previously been traded on the futures market. The compensation amounts to a maximum of €6 per 100 kg per provincial grower. Minister Schouten has allocated a total of €50 million for the compensation. If the total amount of the requested compensation exceeds €50 million, a generic discount will apply to all compensation.
According to an estimate by BO Akkerbouw, around 1.500 growers are left with French fries potatoes. This involves approximately 1 million tons of potatoes. André Hoogendijk, chairman of BO Akkerbouw, warned in a statement on Thursday that drafts of the scheme are circulating in the sector. He speaks of this as 'outdated information'. “The texts are still being worked on and we cannot vouch for a draft that someone has read somewhere.”
The scheme is only final when it is published in the Government Gazette.