Early market supplement for Emsland grower

Normally, the affiliated growers of Emsland Group only receive the commitment about the 'Market price premium' and its amount later in the season. This is a market bonus that is paid as a surcharge on the basic price for starch and flake potatoes. This commitment has now been brought forward to December. This means that at least €7,50 extra is paid out per ton of flake potatoes. For starch potatoes this is at least €15,00 per tonne at 19% starch.

In concrete terms, this means that (as an example) for the Saprodi variety, the payment price for Emsland Stärke (starch) amounts to €125 per tonne, and that for Emsland Food (flakes and granules) at €130 per tonne. "These prices apply for delivery at harvest, on October 1, with a starch percentage of 20,5% and underwater weight of 497," explains Wesselink. This price also includes support for transport costs, up to a distance of 50 kilometers. This price includes the previously announced drought compensation, which will be paid immediately after delivery, has already been processed."

price rally
"With this payment we want to support the grower in two ways," the CEO continues. "Growers' cultivation and storage costs have risen sharply this year, but we see that this increase has not yet come to an end. This early commitment helps farmers. We also want to give growers a good feeling about potato cultivation at Emsland Group. We see There is currently a price rally among chip potato processors in Northwest Europe. We want to maintain and further expand our position in starch potato cultivation. We also have growth ambitions in potato cultivation for flakes and granules."

Wesselink calls the prices for the 2022 harvest year more than competitive in the market. "We are currently working on the contract price level for the 2023 harvest year, for both starch and flake potatoes. This will clearly increase further compared to the 2022 contract price, but the exact level is still being determined. Almost all growers have used the drought compensation scheme this year. , which amounts to €15 per tonne. In return, growers commit themselves to supplying the same volume of potatoes in 2023 as in 2022. We are therefore assured of our potato volume, but we know that Emsland must remain competitive and communicate prices at an early stage. we are working hard."

Customers grow
The company is very positive about the core markets for potato starch and flake products. "We are told by our customers that they want to grow and ask whether we will go along with this. Emsland Group has the ambition to grow in both segments. That is not easy, but from West to East Germany we are well represented with several factories."

In addition to potatoes, Emsland processes approximately 150.000 tons of dry peas annually in two of their factories in Emlichheim - just across the Dutch border - and in Golßen, south of Berlin. "Pea cultivation is popular, especially in East Germany, among arable farms that have a lot of grain in their crop plans," says Wesselink. "Because of the new CAP, we are clearly seeing more demand for the cultivation of leguminous plants. Each state has its own interpretation of the CAP, which means that the requirements can vary. It is therefore sometimes a puzzle to see how the new rules will work out."

Pea cultivation also for the Netherlands
The German company also sees opportunities for the cultivation of dry yellow peas in the Netherlands. That is why a pilot was carried out in 2022. "With the new CAP, it may also be interesting for Dutch arable farmers to achieve gold and be entitled to the maximum hectare premium. The crop is contracted by Emsland Stärke GmbH and delivered to a cooperative in the Emlichheim region. We use an indicative price for this. from €350 per tonne, delivered free of charge. The cultivation is still in the early stages and is supported in the Netherlands by a local cultivation expert."