It comes as no surprise that potato processor Aviko Potato is also implementing a substantial price increase in its fixed-price contracts, but that the company is now offering a contract price above €30 can be called special. Growers in the Netherlands can secure their potatoes for the coming season for the same prices as those in France.
Late December presented Aviko Potato has already awarded the contracts to its French potato growers. From this week there will also be more clarity for potato growers in the Netherlands. They can make use of the same offer as their French colleagues. Here and there the prices differ slightly due to a difference in storage fees, says purchasing director Dick Zelhorst.
Innovator above €30
Fontane starts the season in week 33 at €18,75 per 100 kilos, which is reduced to €17,25 on week 36. In week 17, the price is €24,80. In week 26 that is €27,50. Innovator starts the season at €19,25 in week 36, €26,80 in week 17 and €29,50 in week 26. This price rises to €30,10 in week 28. This does not include a fee for storage in the mechanical cooling. It starts in week 17 at €5,25 per tonne and increases by 75 cents per tonne per week, to a maximum of €14 per tonne in week 29."
Aviko growers are familiar with the pattern of the three categories (A, AA, AAA) into which the potato varieties are divided. "Innovator will have its own category for harvest year 2023, which we call QSR (Quick Service Restaurants), says Zelhorst. "It is specifically aimed at the fast food segment. Another important change is the adjustment to 35 millimeter size grading instead of 40 mm in the contract conditions." Aviko works with hectare and net ton contracts, grower's choice, in both the Netherlands and France.
Multi-year contracts will not be concluded again this year. The cost index contract, which takes into account the costs of fertilizers, irrigation and energy, among other things, is used. The index level is set in February. The processor is currently setting up a sustainability scheme in which growers can participate voluntarily. The rollout will probably follow this spring.
Processing capacity is growing
Aviko is aiming to expand the potato acreage in northern France in particular, because of the new factory that opened its doors in Poperinge last autumn. Zelhorst: "There is also a need for more potatoes in the Netherlands, partly due to a capacity expansion of our factory in Lomm in Limburg."
For the 2023 growing year, the company is partly focusing on new varieties that are less susceptible to diseases, or that have a broader AM resistance, for example. Lugano and Lady Jane are two such breeds. Their availability differs this year and depends on the availability of seed potatoes. "The introduction of new, robust varieties is very important for our growers and the potato sector," emphasizes Zelhorst. "We're working hard on that." Seed potato prices rise on average by €5 per 100 kilos, depending on the variety and size.
World market changed
According to the director, the contract prices offer good prospects for the grower and are aimed at securing the acreage for the future. "It's up to us to make good value for the potatoes and put them on the market. The cost price remains a challenge, because it has risen sharply in Europe in relative terms. The favorable position we had as European processors on the world market (a relatively low selling price ed.) This puts it in a different light. This makes it more interesting to supply certain destinations from other growing areas. For example, export from China to other Asian countries. That was unthinkable two years ago because of the cost price at the time."