Due to an exception rule in the competition law, growers have been allowed to unite in a producer organization (PO) for a few years now. One of the parties that is really trying to do this in the Netherlands is the Producers Organization for Consumer Potatoes (POC). How does the organization want to improve the position of the growers in the chain?
A relatively large number of small suppliers and a limited number of large buyers are characteristic of the sale of various agricultural products. This makes it difficult for farmers to defend their interests in negotiations with other parties in the supply and sales chain. The EU has therefore made an exception in competition legislation and offers farmers the opportunity to unite in a recognized PO. The POs distinguish themselves from other trade organizations because they are allowed to actively influence the market. This can be done, for example, by steering the offer, but also by negotiating contract conditions on behalf of the members or by providing technical and logistical support.
Recruit members
The POC is currently mainly busy recruiting new members and that is starting to pay off. "Our membership has doubled in recent months," says Keimpe van der Heide, chairman of the POC. "I estimate that we now represent 10% of the Dutch potato area. We are moving in the right direction, but we have to grow further to really make a difference in the chain. We have set ourselves the goal of 2025% by 70. of the area is affiliated with the POC."
Merely uniting the growers in the Netherlands is not enough, according to Van der Heide. Then there is a good chance that customers will move to neighboring countries to sideline the POC. It is therefore important that the initiative in the Netherlands is also followed in other countries. "Europe offers the opportunity for cooperation in a union of producer organizations. Then we can make agreements with the Belgian, German, French and Dutch POs, for example. You just have to start somewhere and we as POC take the lead. We receive many positive reactions from our neighboring countries."
Position of the grower
The POC can improve the market position of the affiliated growers in various ways, according to Van der Heide. "For example, the POC can jointly adjust the area to the expected demand for potatoes or conduct contract negotiations on behalf of the affiliated growers. If too many potatoes are growing, you could also withdraw a small part of the potatoes from the market at the beginning of the marketing season. collecting and selling in, for example, feed or flakes, a bit like going crazy at the auction. Then you prevent a situation of oversupply from continuing to dominate the entire season. Market information can also be improved. Buyers are now dominant in the quotations at the stock exchanges The POC also calls on growers to make much more use of their option to report transactions to the exchanges and not to leave that only to the buyers. POC is an association, so the members have a say in which instruments they use. when you want to bet."
According to Van der Heide, the risk that the free market will be further suppressed by the POC is not too bad. "If you look at the current market - good sales figures and a relatively limited stock - you get the feeling that there is room for upward movement in potato prices. Because the initiative for the quotations now lies on the buying side and they are primarily interested in keeping the market calm price increases will be delayed or not even reflected in the quotations. POC could, for example, lobby for modernizing the market system in which the voice of the growers is given a greater role. With such interventions you actually strengthen the free market."