The Producers Organization for Consumer Potatoes (POC) recently organized sixteen meetings to call on potato growers to unite. “Everyone who visited us has become a member, or was already a member,” says board member Jacco de Graaf with satisfaction. “We already offer added value for that 200 euro membership fee.”
Sixteen meetings throughout the Netherlands. Isn't that very tough for a relatively small group of volunteers?
"That is certainly intensive, but fun to do. The POC took shape during the corona period. This was the first moment when we were able to talk to growers on a large scale and tell our story. That is paying off. Almost Afterwards, everyone becomes a member of the producer organization. We also offer added value for an amount of €200. To further expand the POC, we are still looking for regional representatives. The southwest and North Holland are well represented, but from the south and east (sand cultivation areas) and Flevoland really needs to do even better."
Are you satisfied with the turnout?
"You are only satisfied when it no longer fits in the room, but we are positive across the board. It just varies a lot per region. In Limburg there were fewer participants, but again with relatively large areas. In the southwest there are more present but they represent less acreage.”
What is the mood of the potato growers regarding the new potato season?
"Expectations for next season are high, although it remains to be seen what the Dutch processors will come up with. We can now only rely on the prices that the Belgian processors have presented. If you look purely at the price, it looks good indeed. But the conditions are just as important. For example, there is a buyer who promises the highest price, but the exact tonnage is only awarded afterwards. Last year we saw that not immediately signing a contract helped, with price increases of up to consequence. I think that is a good signal."
The POC advocates a contract price of €25 on April. The currently known prices are close to that. Doesn't that make you a little redundant?
"Certainly not! In addition to the contracted potatoes, the so-called co-delivery kilos are at least as important. We also emphasize this to growers during our meetings. Do not be obliged to deliver these to the same buyer, is our motto. This does not mean that you absolutely have to find another buyer, but negotiating the best price will probably always benefit you as a grower. Unfortunately, this realization is not always there. It seems as if it is more important to get enough trucks and the barn empty than a the highest possible price."
Determining the best price requires a representative free market against which you can measure yourself. Will you also respond to that?
"In the presentation we also discuss how the stock exchange price was determined. We show how many tonnes of potatoes are paid for on the basis of the PotatoNL quotation and how great the interests are behind this quotation. The grower representatives often leave empty-handed because not enough transactions are entered. Growers in the audience agree with us, but practice must of course show whether behavior actually changes."
The POC started in 2020. What is the current situation with the growth of new members?
"We now have more than four hundred potato growers as members. It is estimated that they represent about 15% of the national area. Our ambition is 70% as a lower limit to have sufficient market power. The deadline for this is January 2025, XNUMX."
Are it mainly smaller growers who become members? After all, a large grower already has more to gain from his buyer.
"We have members with 500 hectares and 3 hectares. It is said in the corridors that large growers get a better price, but the openness to share this is not great. Larger companies are often flexible, you can always load and be indoors. or the potatoes are washed. These extras are rewarded. We do notice that large growers are more conscious of their costs. Differences between cultivation on clay and sandy soil are also pointed out. We have carefully compared their cost prices. What appears to be the case : there is not much difference. The costs are just in different places. Especially because sandy soil is irrigated much more."
The free market and futures market are very quiet this season. Is there still hope for a healthy potato market?
"Farmers are very good buyers when it comes to a new tractor or machine, but it is different with potatoes. Last year showed that by being cautious when contracting, you can also get more in the barrel. Selling free potatoes is difficult now, because so much is fixed. The industry hardly has to immediately enter the free market to purchase additional potatoes. In 2018 we saw that free market forces are limited and now again. 80% of all potatoes are already destined for they are fully grown. There is not always a price, but the buyer is known. We have good contact with all buyers. Individually they confirm that the price level is not the problem, it is mainly about their competitive position. They do not want to pay more than a competitor."
Are there also growers who do not like the POC at all or is everyone positive?
"The comment we sometimes hear is that attempts have been made in the past to unite growers, and that this has always failed. The truth is that it is only now that we have the right legislation to do this properly. Our higher The aim is for similar initiatives to be set up in other European potato countries. France has already made relatively progress in this regard. Growers who have not yet heard our story can participate in the final event on December 22. webinar and hopefully think about membership during the Christmas holidays."