Potato processor McCain has also presented its potato contract prices for the 2023-2024 season. Across the board, prices are increasing by 30% to 40%. In addition, the delivery conditions will be relaxed and McCain will come up with new contract forms that will increase the choice for growers.
For ex-country delivery in week 36, McCain pays €17 for Fontane and €19 per 100 kilos for Innovator. In week 17 (end of April) the price level is €25 and €26,75. At the end of June - in week 26 - this increased to €27,35 and €28,95. For all varieties and delivery periods, contract prices have increased between 30% and 40% compared to the past season. These prices include fees for storage in mechanical cooling.
Relaxation of requirements
"There are a number of changes for the new season," explains agricultural director Alex Petrov. "For example, we are adjusting the delivery specifications to 35 millimeters, as was already the standard in Belgium. The tare requirements have been changed and are more friendly to the grower. The quality system remains unchanged. We are also adjusting the premium system to the grower's advantage. " The storage fees have also been adjusted. The Canadian company will start paying a premium for mechanical cooling earlier. In week 17 the premium is €5 per tonne. This increases to €14 in week 28.
More potatoes required
"McCain offers a wide range of varieties that growers can choose from, depending on their wishes," the director explains. "The new variety for our King Russet is promising. We are focusing more on this. Seed potatoes are sufficiently available for all varieties. Prices are rising by about 15%." The processor has expanded its processing capacity in Lelystad in 2022. The start-up period is now over. For the 2023 harvest year, the company is therefore committed to both a larger acreage and more tons of potatoes throughout the Netherlands. Growers who supply more than 200 tons on a fixed contract or mini-maxi price receive an extra premium."
Contract with floor price
In addition to the existing contract types, a contract with a floor price is possible from this year. Petrov: "This new contract applies to potatoes delivered dry from the shed, with a minimum of 40 tons per hectare for a fixed price. The fixed price level for 2023 is used as a minimum. For potatoes above this volume, the grower and McCain profits 50/50% when the market price exceeds the contract price level. If this does not happen, the fixed price level continues to be used. This allows growers to benefit from a high(er) market price without downside risk."
As the only processor, McCain also focuses on multi-year contracts, for which it also pays an extra premium. This year the 2023 price serves as a basis, but this is redetermined annually. With a multi-year agreement, the final price is not definitively determined, but the volume is. "That gives the grower certainty over several years under interesting conditions," says Petrov. “I see a challenging future for both the processor and the grower,” he continues. "Climate change, new regulations, but of course also the sharp increase in costs. We must therefore work together to meet these challenges."
Previously, among other things, Farm frits, Aviko en Lamb Weston/Meijer announced their contract prices and conditions for the 2023 harvest.