Participants of the potato pool at potato processor Aviko Potato were presented with 1 provisional pool price for all varieties. Because the pool makes use of the compensation scheme for chips potatoes, the final result is not yet available.
The result was announced on Thursday 16 July in a letter to the participants. Not through a physical meeting, as is usual, due to the corona crisis. This also has a huge impact on Aviko, the various sales segments and therefore also the development of the pool.
Preliminary result
The Potato Growers Committee (ATC) makes use of the compensation scheme and has received an assurance from RVO.nl that the compensation to be paid will not be reduced by the pool yield. In addition, it immediately states that there are no 100% guarantees. Because the exact amount of the compensation is not definitively known, this is a provisional result. For week 13, the pool without presale amounts to €11,54 per 100 kilos. The presale pool comes out at €12,49 per 100 kilos. These are prices ex. VAT for the size 40mm upwards and before deduction of the pool costs.
It is striking that this price applies to all varieties. Due to the circumstances, there are no noticeable differences per breed, the ATC says. Variety differences and quality bonuses are therefore not paid out. The variety package largely includes Innovator, Agria and Victoria, which Aviko places in the 'triple A category'. That made small differences. Lots harvested under difficult conditions were delivered late. As a result, the potatoes with a reduced quality often ended up at alternative destinations. The custody fee is 65% of the regular custody fee that applies to fixed price contracts.
Final price difference
The ATC thinks that final pool price is about $0,50 up or down. Aviko has already paid an advance and €1,50 per 100 kilos from alternative sales, selling as feed potato. These are settled with the final result. When it will be announced is unknown. It regrets that growers have to wait so long for their money, and is trying to pay out the pool share as soon as possible for the grower's liquidity. Only when it is definitively known at RVO.nl how many potatoes are eligible for the aid will it be clear what the amount of aid to be awarded is. Growers who have registered potatoes under contract can withdraw their application without any problems, for a smoother process.
The corona crisis will also have an impact on the pool for next season. This increases the volume of potatoes. This concerns existing participants who were able to grow fewer potatoes under contract this spring. A larger proportion of potatoes has therefore been put into the pool. Volume growth is not an ambition of the ATC, which has a negative outlook for the coming season. This is based on the current figures regarding acreage, crop growth in Europe and demand for end product.
Shift in retention period
The discussion about the disappearance of the sprout inhibitor Chlorpropham and the foliage killer Diquat has been pushed to the background due to the corona crisis. However, many growers are now cleaning their storage sheds. The ATC also notices that growers are more inclined to sell their product earlier in the season (before January 1). Finding a good spread in the volume to be sold is therefore extra difficult.