Sheep Holland

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Potato sales Sheep is growing on all fronts

10 February 2022 - Niels van der Boom - 1 reaction

Sales to retail as well as its own peeling plant and the chip potato segment are growing at potato processor Schaap Holland from Biddinghuizen. The company is therefore actively looking for more potato acreage. What does this mean for the contract prices for next season?

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In addition to having its own seed potato branch Sheep various pillars of the company. One of these is the sale of table potatoes to supermarkets in the Netherlands. "We saw this sales blossom during the corona crisis and that growth is not over yet," says director Hans Geling. He is responsible for the company's consumption and seed potato branches. "The question is whether and when these sales will stabilize. At the moment, there is a supermarket chain every week that has a promotion on potatoes. We notice this in sales."

Grow in chip potatoes
The volume at our own peeling company is also growing for sales at home and abroad. Finally, there is the sale of chip potatoes to the industry. "A segment that we had previously phased out," Geling continues. "Thanks to a clear demand market, we are now expanding that position again. We do consciously choose to supply varieties with added value: our own Valencia (more about this later in this article), Agria and Innovator. Our focus is not yet on the bulk market with Fontane."

Across the board, Schaap is looking for more potato growers and acreage. What does this mean for prices? Geling: "We initially introduced a price increase of €2,50 per 100 kilos across the board. When it turned out that the chip industries were going a step further with their prices, we increased the price by €1 at the beginning of February. The bottom price of Our bottom pool has been increased. With all the increases, this for Agria is now €5 per 100 kilos higher compared to the current season. The bottom price is €4,50 below the level of the fixed price contracts, but the grower does participate in the free market. This involves a discount of 5% on the final pool price. This is interesting for certain growers. After all, you have a fixed base with an upward possibility."

Agria prices
In addition to the various pools, there are fixed price contracts. For Agria this amounts to €14,50 for delivery ex-land. In week 17 this is €20,05 and in week 26 it is €22,85. This price applies to the size 40 mm to 80 mm. Schaap pays €2,50 less for the upper size. An additional premium of €1,50 is paid for box storage for both size gradings. Seed potato prices remain stable.

Innovator costs €14,25 ex-land. In week 17 this is €20,10 and in week 26 €22,75. Schaap does not charge potato tare for this variety. For the Innovator variety, an additional premium will be paid from week 17 for mechanical cooling, which is not yet included in this price.

Hollow in Agria not an issue
Geling clearly notices interest in Agria, but the variety does not suit every grower. "Anyone who has mastered it is satisfied with the variety. The guidance is therefore important, because it requires attention. Due to the relatively low number of tubers, the seed potato requirement is greater, more than three tons (size 35/50) per hectare. The starting costs are then also higher. The variety also requires extra attention in storage. Hollow is a common problem this season. Initially this worried us, but we can get by with it. Storage is also going much better than expected. Green tubers and feeding We are also seeing this to an increasing extent this year, partly due to a thinned out resource package."

Grow Aromata
A variety that Schaap specializes in is Aromata. A replacement for Agria in the early segment within the peeling company. The company uses a fixed price with a graduated scale for this. There is a pool for delivery to retail in small packages. As with the other table potato varieties, these are always PlanetProof certified. "The advantage of Aromata is its ABCDE resistance, which means that it can be widely used, just like Innovator," Geling adds. "We are still looking for expansion for this variety."

A new variety that Schaap is focusing on is Valencia, which, like Aromata, comes from its own seed company. Geling explains: "Valencia is a dual-purpose variety that can be used in small packages as a floury potato, but is also popular in the French fries industry. The volume of this sales branch has increased considerably in recent years. We can now speak of a successful variety. It is a main crop variety that fits into the 'regular' segment. In terms of flesh color, Valencia is not as yellow as an Agria, which means it is probably not a replacement for our own peeling company."

Exclusive license
Another breed that Schaap relies on is Laudine. It has acquired the exclusive worldwide license from Agrico so that Schaap has its own management of the seed potato cultivation. This fixed tube is also intended for retail use in small packaging. "Nicola has not been performing with our growers in recent years as we were used to in the past," explains the director. "Ludine is clearly better."

With its own seed potato facility, peeling facility and broad sales channel, Schaap is largely independent. "The family business has a broad market presence and has a lot of in-house knowledge," Geling sums up. "We will therefore clearly continue to follow our own course."

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