The contract prices for high dry matter potatoes, intended for processing into flakes or granulate, are increasing at Aviko Rixona this harvest year. Although the drying industry has to contend with high energy costs, market expectations for the end product remain good.
Aviko Rixona has 2 factories in our country – in Warffum and Venray – and since 2020 one in Stavenhagen, East Germany. Despite the high pressure from competition from other potato segments, the company wants to expand its area in the Netherlands. Higher contract prices should contribute to this. The company only works with multi-ton contracts. The prices mentioned are free of charge.
€30 to €48 price increase
From land there is an additional charge of €30 per tonne and from storage it is €33 to €48 per tonne, depending on the delivery period. "The storage fee has been sharply tightened, which is also necessary for the higher energy costs and more expensive sprout inhibitors," explains purchasing director Dick Zelhorst. "We also store some of the potatoes at our factory. Granules are produced in Warffum. We produce flakes and granules in Venray."
In week 36, €144,25 per tonne is paid. In week 38 – from temporary storage – this is €151,66. In week 1 the price is €158,15, in week 17 €184,50 and in week 28 it is finally €214,16. The basic transport allowance for 50-100 km is included in the price. The transport allowance for other distances has also been increased. In addition, Aviko Rixona has increased the premium for low sugars from a maximum of €2,50 to a maximum of €6 per tonne. The prices apply to potatoes with a submerged weight of 480 grams. Above this, a premium is paid up to 560 grams. This amounts to a maximum of €36 per tonne.
Innovative products
"The market expectations for flakes and granules are positive," confirms Zelhorst. "We are therefore expanding production capacity in Venray. Due to the significant increase in costs for both cultivation and energy, we are forced to pay a significantly higher price. If this does not happen, growers will drop out. The most important thing is that the arable farmer has a structurally good can earn a living. By bringing new innovative products to the market, we hope to add even more value to our products. A recent example is Potato Cheezz. A cheese substitute made from potatoes."
"Most of our potatoes are grown in the northeast of the Netherlands, where there is a lot of pressure on the acreage," Zelhorst also notes. "Not only because of mutual competition, but also because of legislation and regulations. However, we have managed to expand the area in recent years. We notice that large arable farmers in this area are increasingly growing for multiple market segments. In addition to flake potatoes, also starch and fries. There is not one best choice, the grower chooses himself. For example, a large portion of the high dry matter potatoes are stored until the end of the season, while this is often organized differently for starch potatoes. So the cultivation must suit you."
Aviko Rixona has been around since 1926 in Warffum, Groningen. In 1985 Aviko took over the family business. Processing at both locations has grown from 250.000 tons to 400.000 tons in recent years. In addition, 150.000 tons of potatoes are processed in Germany and an expected 50.000 tons in Aviko's new factory in Poperinge.