The 2021-2022 chip potato market is ending disappointingly for many long-term keeper and free potato growers. No flowers at the finish this year, but a market that goes out like a candle. Isn't this the right time for the Producers' Organization for Consumer Potatoes (POC) to act?
After a recovery in May, the potato price has completely collapsed due to a drop in demand on the open market. How do you explain that movement?
Van der Eijk: "It also came as a surprise to us. You can see that a lack of information makes it difficult to properly analyze the situation. Are there really too many potatoes or is it a tactical purchasing move? The processors have a good overview of the market and know the stocks. They use that information smartly, that is their right."
Assuming that there are indeed more free potatoes in stock than processors need, would this have been a good time to withdraw product from the market?
Van der Eijk: "Technically it is within the capabilities of a producer organization. We believe that you should do this at the beginning of the season, not at the end. Remove bad parties from the market that negatively affects price formation. has been discussed. The POC must professionalize further in this regard."
So it is possible, but how do you get that organized? Previous initiatives for onions, for example, ended in failure.
De Graaf: "If you make such a decision, it has to be done at the beginning of the season and then everyone has to contribute and thus benefit. If the free market price is just above zero euros, it is also financially feasible, as in the was the case with onions in the past. This is not possible in the current potato market. Moreover, the POC must first have sufficient market power. We now have about 400 members and that does not yet represent sufficient potato acreage. Withdrawing the product from the market should not be a one-off action. We are there to structurally strengthen the position of the potato grower in the chain and thus be an equal partner."
How do you ensure that you, as a POC, are taken seriously by processors?
De Graaf: "We are now mainly looking at the grower collectives in the United States. The system has been functioning well there for years and the growers are on an equal level with the processor." Van der Eijk: "We are also mainly concerned with acquiring knowledge and are working on obtaining a subsidy to also have the financial resources."
You call it a grower collective. Aviko Potato has its ATC (Potato Growers Commission). Isn't such a collective already there in essence?
De Graaf: "That is not comparable to the organization we aspire to or how things are going in North America. I have supplied to Aviko myself in the past. The ATC is affiliated with Aviko and delivers almost all potatoes to this factory. We want the freedom of choice to work with all processors who want to meet the conditions of the grower collective."
Are there examples where things are already going well?
Van der Eijk: "Take the horticultural sector. I am not an expert in this area, but they have united for, for example, the production and marketing of tomatoes, peppers and cucumbers. We as POC can learn from that. I know that we are asking for a cultural change. The chain problem is that potato cultivation is a marginal crop. Looking at the challenges that lie ahead in terms of sustainability, financial incentives are needed to keep the crop interesting. A revenue model is needed. Wageningen University will support us in finding such a sustainable revenue model."
Insiders fear that the new season will be 'contaminated' by the current low prices. How do you see that?
Van der Eijk: "The growing season ultimately determines the yield and the price. In that respect, anything can still happen. If it appears that there is overproduction during the main harvest, then that is the time to think about how we can grab. Wheat prices have fallen considerably, but are still attractive." De Graaf: "The POC recently calculated that a wheat price of €320 per ton provides the same return as contract potatoes on April. We think this is a serious alternative. The area for 2023 cannot grow without growers hurting themselves financially."