Arable farmers would like to grow potatoes, but not at any price. Q-potato adapts its method. In addition to unchanged contract prices, it introduces a new pool that establishes a bottom and top in the market. In between, the grower determines his own price movement and risk.
"We have spoken to a lot of growers in recent months," says Q-potato director Dirk van de Water. "No digital conversations, but at the kitchen table. We are a small organization and can organize this in a corona-proof manner. The common thread in these conversations is that arable farmers would like to grow potatoes, but that the risks and costs are increasing significantly. Deep dips in the market can they no longer afford it. That is why they often opt for wheat. That yields nothing, but also costs nothing, or so the argument goes."
2 important points
With these words in mind, Van de Water sat down with the board of the Potato Growers Association (ATV) of Q-potato from Lemmer. Two important points emerged from these conversations. For example, the company has decided not to reduce the fixed price contracts for 2-2021, but to keep them the same as for 2022. The other point is a new pool shape: the Bottom Top pool.
In the Q-potato Soil Top pool, growers can choose to contract 0, 5, 10, 15 or 20 tons at a fixed price per hectare. The company offers contracts for the Agria/Innovator, Marquis/Lady Anna, Fontane/Alverstone Russet and Arsenal varieties. Only dry products from the shed are contracted. In week 45, the price of Agria & Innovator is €13,00 per 100 kilos. In week 17 this is €16,60 and in week 28 it is €19,90. For Fontane the prices are €11,25, €14,85 and €18,15 in these periods. A maximum of 25 tons per hectare can be contracted to ensure that sufficient market forces continue to exist.
Deliberate 1-year contract
The potato company consciously chooses to make 1-year price agreements, says Van de Water. "We are all for a long-term relationship with growers. At the same time, we jointly look at the cultivation and storage costs, associated risks, inflation and other factors every year. The best way to do this is to determine the price every year." A GlobalG.AP certificate is required for the Agria variety. The company pays €50/ha premium for this, with a maximum of €500.
In the Bottom Top pool, a bottom price and a top price are set per variety. For Agria & Innovator, the bottom is €45 in week 6,75 and the top is €17,25. In week 17 this is €9,15 and €22,05 and in week 28 €10,25 and €24,25. For the group with Fontane, these levels are €5,75 and €15,25, €8,15 and €21,05 and €9,25 and €22,25. "Every grower can calculate his desired financial base in this way," says Van de Water. In addition to a fixed price volume, the rest can be supplied in the regular pool or the Bodem Top pool. Those who take more risk can receive a pool price that is below the bottom, but also above it, compared to the standard pool. There are no costs associated with participating.
Category 2 reward
Depending on the variety and the delivery period, and assuming 20 tons per hectare at a fixed price, the total financial return per hectare can vary from €4.000 to €11.000, as the company itself calculates. Potatoes delivered to a category 2 destination are rewarded extra, with €0,50 to €1 per 100 kilos, depending on time and variety. Q-potato focuses on chip potatoes grown on clay soil, delivered from storage. The most important growing areas are Flevoland and the southwest of the Netherlands.