French fries prices are under pressure, forcing potato processor McCain to adjust contract prices for 2021/22. It does not come to large fluctuations. In its own words, the company wants to radiate stability. For the long term, McCain wants to expand as processing capacity increases.
Last season there was a dossier on germination inhibition central in McCain's potato contracts. This will remain an important item for the coming season, because according to the processor it is a learning curve. The availability, effectiveness and cost of the resources are all things that need to be taken into account.
Press on fries price
What makes the biggest difference in the fixed price contracts next season is the chip price, which is under pressure due to decreased demand. This will make minor changes. However, major fluctuations are avoided. McCain also does not change the conditions, for example by reducing the maximum volume at a fixed price. The retention scale and quality premiums also remain unchanged.
Innovator's main harvest from the field starts at €10,80 per 100 kilos. In week 17 this is €16,47 and for week 26 it is €19,40. Compared to last season, the largest reduction is noticeable in the field period: €0,70. At week 17 this is €0,28 and at week 26 it is €0,10. Fontane starts the season at €9,50, increases to €17 in week 13,80 and €26 in week 16,78. The prices here have been reduced by €0,75, €0,53 and €0,31.
The prices refer to fries potatoes with an upward slope of 40 millimeters. McCain also offers 2 and 3-year contracts, but does not specifically target this. Anyone who makes a multi-year appointment will be rewarded for this. With a 3-year contract, the prices are at the 2020 level.
Graduated mechanical cooling
The prices of the Hansa variety for Cêlavíta are also adjusted slightly downwards, although less than the aforementioned trend of McCain. The challenge at Hansa is mainly to prevent feeding damage caused by wireworms. Seed potato prices remain stable. McCain will adjust the compensation for storage in mechanical cooling. Instead of a monthly allowance, there will now be a weekly scale.
The international food company remains positive about the long(er) term. In October while Begonia with the expansion of the factory in Lelystad. In the long term, production must increase by a third, which will require additional potatoes.
The company is therefore committed to expansion for the 2022 harvest and beyond. The challenge is to find varieties that – for example in the East of the Netherlands – perform well and are at the same time sufficiently long. McCain focuses on premium 'French fries'. These long thin fries require a long potato. To this end, it also develops varieties that are positioned between the Innovator and Fontane.