Just before the holidays, the Belgian-Dutch potato processor Agristo presented its contract prices for the 2023 main harvest. The upward trend that was already visible in the ex-land contracts is being extended to that for storage potatoes.
From the 2023/24 season, Agristo will work with a weekly price in its contract for the three variety groups. These are main (Fontane), alter (Challenger and Marquis) and long (Innovator, Zorba, Leonata and Lady Anna). This concerns a tonnage contract with one price scale for growers in Belgium, France and the Netherlands. The prices mentioned are exclusive of VAT for 35mm upwards. The contract does not include premiums and discounts.
The main harvest delivery from the field (week 38) starts at €17 per 100 kilos for Fontane and €19 for Innovator. These prices were already announced prior to the Interpom announced. The company will continue this price increase of 35% to 40% in the later delivery periods.
Fontane and Innovator
On week 17 (end of April), the price for Fontane will be €25,50 and that of Innovator will be €27,50. At the end of June (week 26) that is €27,80 for Fontane. Innovator will then no longer be contracted, but Markies will. This amounts to €29,20 in week 26. Anyone who delivers in the first two weeks of July will receive an extra 30 cents.
Agristo does not charge a separate surcharge for storage in mechanical cooling, but in practice long-term keepers usually make use of this. The company says it applies an appropriate contract price for those who deliver at the end of the storage season.
Up to 40% price increase
Relative to 2022 the price increases in April by 40% for Fontane and 36% at Innovator. That amounts to €7,25 for both varieties compared to last season. This puts Agristo in the lead among the Belgian potato processors who have so far announced their contract prices. The prices of seed potatoes will increase by a maximum of 10% for next season, depending on the variety and size.
"The demand for potatoes is increasing further and this must be matched by the correct acreage," explains agricultural director Steven de Cuyper. "Our processing capacity has increased in recent years, but the demand for fries is also growing worldwide. Of course, no one has a crystal ball, but we are positive about sales."
Serious cost increases
"Growers are faced with a serious increase in the costs of potato cultivation," he continues. "The contract prices must keep up with this increase. We are continuing the trend that was previously visible with the ex-field contracts in the contract prices for the main harvest. French fries production is also experiencing significantly higher costs."