Aviko Potato has presented the contract prices for the 2023-2024 season to French arable farmers. Last autumn, the company opened a new French fries factory, just across the Belgian border in Poperinge, and needs potatoes for that. Growth in area and volume is therefore required. Overall, this means a significant price increase.
On average, contract prices for the coming growing season will increase by €5,86 per 100 kilos. That reports news site Action Agricole Picarde. The growers' group Producteurs pour Aviko (PPA) organized several meetings for affiliated growers at the end of December. The structure of the grower organization is comparable to the Potato Growers Committee (ATC) that Aviko has in the Netherlands.
Price level
What does this mean specifically for the price level? A price of €17,50 per 100 kilos is paid out-of-field for Fontane. For Innovator that is €20,00. In week 17 (end of April) the price for Fontane is €24,50 and for Innovator €26,50. According to news site AAP, the growers present were satisfied with the prices presented because they were above the level previously discussed. If we compare this price level with competitors, the Aviko price level is slightly above it.
French potato growers can choose from a hectare or tonne contract. The contract includes a force majeure clause, the delivery conditions have been slightly relaxed for next season and the additional price for delivery on Sundays will increase. A program is also being created that rewards sustainable cultivation. Aviko does require that all growers are certified, for example via Global Gap or the Belgian Vegaplan. In addition to chip potatoes, Aviko also contracts varieties for flake production in the country. Aviko also supplies the size 28-35mm.
Need French potatoes
According to Alain Dequeker – chairman of the PPA – the improved contract conditions are a result of the intensive consultation that the grower organization has with the Dutch potato processor, he told AAP. During the meeting in Arras, Cosun CEO Hans Meeuwis once again made it clear to the growers that Cosun is highly dependent on French potato growers in their Belgian factories to meet their raw material needs. Aviko has traditionally been big in the food service segment and still sees good market opportunities there. Raw materials director Dick Zelhorst did express his concerns during the meeting about the ever-increasing production costs. This means that the price of the end product also rises; to just above €1.000 per tonne in December.
The cost index contract, which Aviko also uses in the Netherlands, will be put on hold for the 2023-2024 season, Dequeker said. This has everything to do with the very high inflation and uncertain economic situation in the short term. According to him, postponement does not mean cancellation and the contract form, which takes into account current production costs, continues to be refined by the PPA and processor.
New varieties
The costs for seed potatoes will increase slightly this year for growers. The growers present emphasized the importance of locally produced seed potatoes and the development of new (French) varieties that thrive in the local climate. Dequeker: "Most common varieties are at least 20 years old. We need new varieties that are tailored to current growing conditions."