The Belgian-Dutch company Agristo is the first of the large potato processors to start contracting chips potatoes for the main harvest 2021. Depending on the delivery date, the contract prices will change slightly compared to last season. Stability is the motto. In the volumes and the price from storage.
Like many other processors, Agristo paid its highest contract price ever for the 2020-2021 season. For the 2021-2022 season, the price will be adjusted in the ex-field segment and for delivery dry from the shed. The price only remains unchanged for long-term holders. The company clearly opts for stability.
Equal volumes
Agristo's fixed price contracts are clear and with little fuss. The potato processor, with factories in Tilburg, Harelbeke, Nazareth and Wielsbeke, only works with tonnage contracts. It pays the contract price for 35 millimeters of upward movement. Growers are free to choose excess kilos. Agristo also aims to purchase this free volume at the daily price. Growers are not limited in the volume they want to secure at a fixed price. "Every year there are shifts in tonnages and hectares," says Agro director Steven de Cuyper. “The most important thing is to provide stability,” he continues. "In the volumes, the price and the grower's construction plan."
Price reduction, especially on land
The largest reduction is noticeable in the ex-land segment. The main harvest of Challenger, Markies and Innovator starts in week 35. For the former varieties, Agristo pays €10,00 per 100 kg. For Innovator that is €11,50. This is a decrease of €1 compared to last year. In week 17, €16,25 is paid for Fontane and €18,25 for Innovator. The difference with last season is €0,25, when slightly more was paid. €15,50 is paid for Challenger and €16,25 for Marquis.
Because in 2021 week 26 falls in July, it is more difficult to make a comparison with next year. Anyone who looks at the pricing will see that from May, week 18, the price is the same as last season. Only in July does the price drop slightly, by €0,25. The company reduces the seed potato prices of the coarse sizes by €1 per 100 kg. For the small sizes it is €2. No further changes to the contract will be made. Agristo does not work with multi-year contracts or other contract forms.
Back to normal
The potato sector still faces a high degree of uncertainty. How many potatoes are needed when? "We hope that normal life will return by the summer, so that festivals can be organized again and people can go on holiday," De Cuyper looks ahead. "After all, these are the times when fries are consumed. Although home consumption has increased, fries are most often eaten out. Because we aspire to a long-term relationship with our growers, we offer them stability in several areas."
Because Agristo has large product sales to the United Kingdom, this has been a current topic for the company in recent months. “We have done everything we can to prepare our supply chain as best as possible and we have succeeded,” says De Cuyper. "Some customers have called off their deliveries earlier, but this has not caused major volume shifts. In that respect, corona continues to have the greatest impact."
Less area?
Agristo is not committed to fewer potatoes, do they expect to see this image throughout Northwestern Europe? "Ultimately, the average yield determines how many potatoes we will get," says the Agristo man matter-of-factly. "If the area decreases by 5%, and that creates a healthy market, I am in favor of that. The fact is that no one can guarantee this. Farmers' organizations are calling for a 15% reduction in the European area. The more this is said, the more It's the more likely that potato growers do not do this. Don't forget that before the arrival of corona we had a very healthy market with a normal price level. Major adjustments are therefore not necessary."