By concluding a two-year fixed price contract, potato growers can create stability in the contract prices at Aviko Potato. The processor does change the maximum number of tons that can be recorded per hectare. The pool is therefore expected to continue to grow. The focus is on a stabilization of the acreage.
By concluding a two-year fixed price contract, potato growers can create stability in the contract prices at Aviko Potato. The processor does change the maximum number of tons that can be recorded per hectare. The pool is therefore expected to continue to grow. The focus is on a stabilization of the acreage.
Growers are encouraged with stable prices to opt for a long-term commitment that will help them survive the uncertain corona year of 2021. Anyone who signs a 1-year contract will be faced with slightly lower prices. In the ex-field period, the contract prices are reduced in full by €0,75 per 100 kilos. Dry from the shed, that reduction is entirely €0,50 per 100 kilos.
Staffs unchanged
For the 2- and 3-year contracts, the prices remain the same as last season. The storage scale and surcharge for mechanical cooling, which were introduced last harvest year, will also not change. The latter amounts to €0,40 from week 17. Subsequently, €0,05 is added to the contract price per week, without a maximum.
Aviko uses 3 breed groups: A (Fontane, Challenger, Bintje), AA (Victoria, Miranda) and AAA (Innovator, Agria, Marquis, Lady Anna, Zorba). The changes mentioned apply to all these groups. With a two-year contract, the basic price for land delivery starts in week 36 at €10,00 for A, €10,75 for AA and €11,50 for AAA. In week 17, group A spends €14,91 and AAA €16,67. In week 26 this is €17,43 and €19,18. So anyone who supplies Innovator at the end of June will still receive €20,00 per 100 kg for their potatoes, including premiums and reimbursements.
Less on fixed price
If we apply the reductions to these prices for the 1-year contract, Fontane will pay €3, €36 and €17 in the 26 periods (week 9,25, 14,41 and 16,93). For Innovator this is €10,75, €16,17 and €18,68. In addition, Aviko reduces the maximum tonnage that can be recorded per hectare by 5 tons for those who want to record the maximum volume of 40 tons. For Fontane that was 45 tons. In 2021 the maximum is 40 tons for Fontane and 35 tons for other varieties. The approach is that anyone who is used to committing fewer tonnes at a fixed price will not have to deal with this reduction. The company does hope to contract the same acreage of potatoes.
The excess kilos are welcome in Aviko's potato pool, or the price risk can be hedged through one of the other contract types that the company offers. For example, the French fries guarantee contract with a hedging option via the potato futures market. Seed potato prices will drop by approximately €1 per 100 kilos next season. The company tries to keep seed potato prices as stable as possible over the years.
Belgian factory starts
2021 remains an uncertain year for the processor, but long-term expectations remain as positive as ever. Sales to food service in particular remain hit hard, while exports and retail are performing positively. The first fries should be cut in the new factory in Poperinge in the second half of the 2021 harvest year. The potatoes for this are contracted from growers in Belgium and Northern France. Aviko uses separate contracts for this, but applies the same reductions to the 1-year contract.
The sale of flakes and granules via Aviko Rixona has proven to be corona-proof. The processor is therefore also positive about the future of flake sales. Last year, the North German processor Stavenhagen was taken over. Expansion of the flake potato area is mainly sought in Germany. In the Netherlands, the focus is on stability.