BBTV Potato debate part 2
The future of the potato stands or falls with cooperation
Potato cultivation is not possible without close cooperation in the sector. This cooperation starts with the structural payment of a cost plus. That is the conclusion that can be drawn from the Boerenbusiness Potato debate on the future of potato cultivation. At the table were Dick Zelhorst (Aviko Potato), Wim van de Ree (Nedato) and Jan van Hoogen (Agrico).
The potato experts were each presented with three provocative statements. The chip potato sector in Northwestern Europe is aiming for strong growth in potato sales. This includes an area expansion. At the same time, construction plans are under pressure, the bar in the field of sustainability is being set higher and higher and the grower's revenue model is increasingly being squeezed.
Cost-effective cultivation
Aviko Potato's strategy is also focused on growth. About 4% per year until 2027, says Dick Zelhorst. He is Global Agro & Supply Officer at the company. Aviko will open the doors of its new factory in Poperinge in Belgium this month. In addition, production in China and Poland is being expanded. "The challenge is also to achieve growth in the supply of raw materials. This is only possible if cost-effective cultivation with a plus is offered. If you don't do this, the acreage will decrease. We have seen that this year." Especially outside the Netherlands, Zelhorst sees opportunities to expand the acreage. In France, potato growers are exchanging the export and table varieties for chips potatoes, so that more options are created there.
The number of affiliated growers is expected to decrease in the future. Zelhorst sees that especially abroad companies are larger. However, smaller family businesses also remain interesting because of their craftsmanship. He is less certain about this consolidation among processors. Most processors are clustered in a relatively small area. Yet they are often powerful family businesses, especially in Belgium, with a clear strategy. "Belgians are growing domestically and exporting their product. However, we are slowly seeing that strategy change. There is interest in producing locally. The North American industry is powerful. If there are opportunities to take over parties in Europe, they will do so." ."
Substantial price increase
According to the Aviko man, the decreased contract price this season was prompted by the 2 difficult seasons the company has had. "70% of our sales were lost due to corona. The result was that we slightly lowered the contract prices. We now have to regain the grower's confidence. Growers are now making the decision: should I opt for grain or potatoes. That choice will be made in the autumn." A substantial price increase is required, also on a structural basis. We grant the grower his sandwich, but as an exporter we must remain competitive. North America is our biggest competitor. We are winning for now, both in terms of quality and price.
Wim van de Ree, agricultural director of the Nedato cooperative, also hopes to win over growers by offering a wide range of price instruments. He also sees opportunities for bundling the free potatoes. "The really completely free growers are disappearing more and more. I am convinced that free trade will continue to exist, precisely because of the greater fluctuations due to weather influences. You cannot secure 100% of the potatoes. These potatoes for delivery must be priced. could be a great opportunity."
New pricing required
According to him, the way in which these potatoes are priced deserves discussion. "We now have PotatoNL, but this is not being used enough. There are too few transactions from a small circle. The pricing must be more constructive and objective. For example, by an independent third party that collects its information itself. This also happens in other sectors, so why not with potatoes." Van de Ree receives support from his table companions about this idea. The image of pricing is now negative, or so the idea. The sector must work together to improve this.
The importance of a cost-effective market price is greater than ever. If additional sustainability requirements are required, these must be compensated on top of the market price. "At PlanetProof, this was a hard requirement and we succeeded. Growers are paid 3 cents extra on top of the market price. If you agree on this, you will notice that the sector is prepared to become more sustainable, provided it is cost-effective. far-reaching plans to reduce the use of crop protection agents. Despite many protests, it turned out 1990 years later. If we put our shoulders to the wheel, a lot is possible."
Seed potato cultivation has hardly any expansion opportunities
The seed potato sector is also feeling the pressure on the package of crop protection products, but also the climate and the soil. "There is no alternative cultivation area for seed potatoes outside the current locations," says Jan van Hoogen, CEO of Agrico. "In the Netherlands we see the acreage remaining stable at around 40.000 hectares. In France it has grown from 10.000 to 22.000 hectares. There are no new areas, not even outside Europe. You are connected to coastal regions and good logistics must be in place. The latter in particular is often missing. In the US they have to drive 2000 kilometers to the port of Seattle."
Nevertheless, Agrico will have to supply more starting material in the future if the processing industry is to grow. Van Hoogen does not see new varieties that yield substantially more per hectare. "The potato has been bred for thousands of years. You are now at the max of what is possible. We have been very lucky with Fontane. A high yield is 1, but stability is also important. Fontane can supply it, year after year.
With each other
It is clear that the entire chain is facing an enormous challenge. Certainly when you compare the growth ambition of the industry with the ambitions of European politics. For the grower, the main argument is to be able to realize a cost-effective price that gives him confidence and opportunities to continue investing. The sector can only achieve this by working together, from producer to consumer.
This was the second part in a diptych of the Boerenbusiness Potato debate on the future of potato cultivation. Click here for the first part of the debate.
Niels van der Boom
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