Potato growers in northern Poland have still not reached an agreement with processor Farm Frites regarding the contract price for next season. Collectively, there is no signing to effect a price increase. The fact that the price in the Netherlands does rise strengthens them.
Half December decided a group of Polish potato growers not to sign the Farm Frites/Aviko contract. What they did do was unite. For example, every grower promised not to sign until a collective agreement had been reached. This created a stalemate between grower and processor that still exists two months later.
€24 increase
Farm Frites has included an increase of PLN 110 per tonne in the contract price. Converted to €24 at the current exchange rate. According to the group of growers, the increase must be at least 200 zloty (€43,80). Their cost price has increased by more than €500 per hectare and this must be compensated, they believe. Due to drought, most arable farmers have had bad seasons. The yield was not there and the quality was less.
The Polish growers look closely at the home country of the cooperating processors. Aviko does present an interim here contract price increase. This strengthens the belief that this is also possible in Poland. In the meantime, the processor is still working on making individual agreements with growers, according to an arable farmer involved. The 45 united growers say they represent three-quarters of the area.
More potatoes
Both parties are 'stuck' in the sense that they need each other to move forward, as the grower also acknowledges. Most companies have invested heavily in potato cultivation and therefore have to grow potatoes. On the other hand, the factory needs potatoes and a significant capacity expansion is planned for 2023. Not only does it require the same volume of potatoes, but also considerably more. The new chip lines should be up and running in the summer of next year.
The way out for arable farmers is to grow more grains or other crops such as sugar beets. More winter wheat has been sown, but not more rapeseed. A thinning range of resources makes cultivation more difficult. The corn seed is now completely sold out, says an arable farmer. Those prices are also good. The inputs are considerably lower, also in terms of labor, which makes it attractive to grow corn instead of potatoes.
Threat from the east
At the end of December we wrote that it was going to be a 'warm winter' for the potato growers. That is true both literally and figuratively. Winter is also very warm in Poland. What concerns people most at the moment is the tension in the east. The Poles are taking into account a Russian invasion of their neighboring country Ukraine, in which Poland is very involved. After all, part of the country was Ukrainian territory before the Second World War.
The northern Polish border lies against the Russian enclave of Kaliningrad and the border with Belarus is also included under this heading. The Russian troops are not just standing at the Polish border, but sentiment is influenced by it. For example, Polish companies are reportedly already making room to accommodate Ukrainian refugees. The economic consequences can also affect arable farmers. In terms of cost price and sales.