For the tenth year in a row, the Dutch Arable Farming Union (NAV) has made a cost price calculation for ware potatoes. It is expected to fall by an average of 2021 euro cent per kilo in 1. This is a temporary reduction, the organization emphasizes.
The basic cost price for consumption potatoes for cultivation on sandy soil next year will be €15,80 per 100 kilos. On clay soil this is €18,20 per 100 kilos. In both cases, the cost price is €1 lower than in 2020, NAV calculates based on their own model and an example company. The reduction is related to cleaning costs for the storage facility, which was included this year to remove CIPC residues. This cost item will expire next year.
The basic cost price does not take into account the grower's margin. When a margin of 15% is used, the real cost price rises to €18,10 and €20,90 per 100 kilos for sand and clay cultivation. This remains a difference of €1 compared to the previous crop year.
New requirements, extra costs
NAV emphasizes that potato cultivation has not become cheaper. Compared to 2019, the cost price will increase by €1,50 next year. The organization therefore emphasizes that this is no reason to reduce contract prices.
The calculation does not take into account more frequent irrigation and the additional interventions required to prevent run-off. From 2021, dams must be constructed between the potatoes or a wide cultivation-free zone of 3 meters must be used. That increases the cost price.
Irrigation has a major impact on the cost price. For a donation of 25 millimeters, the NAV charges €225 per hectare. Watering twice therefore corresponds to €1 per 100 kilos of cost increase. The question of which price increase is caused by the erosion and run-off measures has not yet been answered.
Germination inhibition costs tripled
Compared to last year, the cost of fertilization has decreased slightly. On clay soil with €50 per hectare. Crop protection costs have risen above €1.000 per hectare for the first time. Partly because the costs of foliage killing agents have increased.
If you include the costs of germination inhibitors and their administration, the increase is even greater. In 2019, the total costs of CIPC were €225 per hectare. For next year that will be €775 to €825 per hectare. An increase of 266%. NAV also estimates the costs for fuel and seed potatoes to be slightly lower. The energy costs for storage also decrease.