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High grain price came too late for potato acreage

June 30, 2022 - Niels van der Boom - 24 comments

The potato area in the Netherlands is showing a surprising picture this year, according to figures published today by Statistics Netherlands. As in other European countries, a negative mood among growers has not resulted in less acreage. According to insiders, this is due to a lack of alternatives. The revival in cereals came just too late in that regard to have a major impact.

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First things first: the acreage cereals is also increasing this year. The winter wheat area squeezed out almost 2% more acreage. The summer grains in particular show a plus: 27% more spring wheat and 22% more spring barley. Growth percentages that we normally only see when the autumn has not had sufficient opportunity to sow winter grain. That was not the case last fall. Arable farmers therefore consciously switched in their crop plan when prices rose. The upward price movement was greatly accelerated by the Russian invasion of Ukraine.

Especially more fries potatoes
However, more space has also been found for potato cultivation. This mainly concerns expansion in chip potato cultivation. CBS refers to this as table potatoes, but insiders hardly expect any expansion here. Also striking is the relatively large decrease in starch potatoes. Cultivation is falling back to the level of seven years ago.

Boerenbusiness asked insiders for their reaction to the acreage figures: 7,7% more ware potatoes. Good for 4.800 hectares, for a total of 76.863 hectares. This means that the cultivation is at the level of 2018, while the processing has increased. It is therefore unlikely that potato processors will now stop looking for cultivation expansion, although the ultimate yield per hectare is leading.

'Potatoes only alternative'
A director of a potato trading company tells Boerenbusiness not to be surprised by the figures, despite the attitude of growers last autumn. "In December, the sound was that many potato growers were going to stop or reduce their cultivation. Although there were higher contract prices, this was not considered sufficient. In the end a contract was concluded." The reason for this, he says, lies in the lack of alternatives. The onion prices are not noteworthy and the carrot price is dramatically bad. "Between January and March, grain prices were not as high as they were later this spring. Potatoes were the best choice then and the effective market rose due to the €20 level."

POC board member Johan van der Eijk does not dare to say what the decisive factor was. "Possibly the higher contract price level, but possibly also more profitable individual agreements that growers have been able to make with buyers. We will pick up on those signals. For next season, the cards will be shaken differently. At a wheat price of €320 per ton, the yield is the same of ware potatoes on delivery in April, we recently calculated. Then you do not yet include the cultivation risk and capital requirement. We therefore advise our members to take a critical look at where they do and do not grow potatoes. This scenario gives a better negotiating position towards the buyers and that is what we need."

Netherlands biggest riser.
It is clear that the acreage in the EU-4 is moving very differently than was thought from last autumn. At the time, there was even talk of reductions between 10% and 15%. Boerenbusiness in April still assumed a shrink of a maximum of 5%. Preliminary figures now show that Germany is stabilizing, in Belgium 1,2% growth has been described and in France the government expects a similar growth. As a result, the Netherlands is a significant riser in percentage terms.

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