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Agrico takes over Royal ZAP's seed potato activities

26 September 2023 - Jesse Torringa - 13 comments

Seed potato trading house Agrico takes over the seed potato activities of the North Holland Royal ZAP. This acquisition allows Agrico to continue to achieve its growth objectives and meet the seed potato demand. Royal ZAP's staff will also transfer to Agrico, which guarantees knowledge of the market and the field.

The cooperative reported this on Tuesday afternoon, September 26. With the acquisition of Royal ZAP, Agrico is taking a step in the growth of its area in order to meet the seed potato demand, despite the shrinking of the available area in Western Europe. Mark Zuidhof, Operations Manager at Agrico, indicates in the message announcing the takeover that the takeover will bring both parties further. "The acquisition helps Agrico to further achieve its growth objective and thus control the costs of the organization. In addition, we create a broader sales network by continuing the ZAP brand." Royal ZAP's seed potato activities cover approximately 900 hectares and also has a successful sales channel for both its monopoly and free varieties.

The operational cultivation activities are transferred to Agrico. The commercial activities surrounding seed potatoes will continue to take place from Royal ZAP, as an independent part within the Agrico Group. This way, knowledge about the market is guaranteed. Robert Verbruggen, general director of ZAP, sees opportunities for professionalization with this step. "Royal ZAP sees this step as further opportunities to professionalize and at the same time maintain our identity. We guarantee returns for our member growers and can remain distinctive and meaningful to our customers," Verbruggen indicates in the message.

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Jesse Torringa

Jesse is an editor at Boerenbusiness and focuses in particular on the arable farming sector, including grain and onions. He also closely follows the fertilizer market. In addition, Jesse works on an arable farm in Groningen with seed potatoes as the main branch.
Comments
13 comments
Subscriber
southwest 27 September 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/akkerbouw/aardappelen/artikelen/10906115/agrico-doet-pootgoed-activities-royal-zap-over]Agrico takes over seed potato activities of Royal ZAP[/url]
This is very special. What is the added value for a major player like Agrico to take over a trading company with only small varieties. Even more overhead. While one should strive for lower overhead costs....
Subscriber
Henk 27 September 2023
they just want to have those 900 hectares of seed potato land
loom 28 September 2023
there are only a few big boys left, which is not a good thing
there must be some choice
Subscriber
seller 28 September 2023
monopoly
Subscriber
juun 28 September 2023
grower wrote:
there are only a few big boys left, which is not a good thing
there must be some choice
it's not like zap was a mark setter. so you're not missing much in that regard.
Subscriber
southwest 29 September 2023
no, not a market setter.
But ZAP did engage in free trade, while Agrico is almost exclusively contract farming.
Subscriber
juun 29 September 2023
southwest wrote:
no, not a market setter.
But ZAP did engage in free trade, while Agrico is almost exclusively contract farming.
It happened quite often with Zap that they eventually ended up back at Agrico. I don't think they did much in exports themselves.
loom 29 September 2023
what envy again....
Zap had the best varieties that did very well
very satisfied with these potatoes.
It would be better for everyone if ZAP simply operated alone
Subscriber
juun 29 September 2023
It's not envy, but that's somewhat my experience with this company. for the price of the free varieties you have to rely somewhat on the exporters who do not have a pool themselves. they make the market.
loom 29 September 2023
juun you would rather sit between Agrico's vice???
there should be many more companies like ZAP
you really don't understand.
If 1 or 2 parties have power, you know what happens
right, there should be many more smaller players on the market that is better for that, that is the case with trade, that is the case with farmers, always better for a healthy market
in large, the emphasis is on must and will, obligatory and busy, etc., which is not healthy
Subscriber
juun 29 September 2023
grower wrote:
juun you would rather sit between Agrico's vice???
there should be many more companies like ZAP
you really don't understand.
If 1 or 2 parties have power, you know what happens
right, there should be many more smaller players on the market that is better for that, that is the case with trade, that is the case with farmers, always better for a healthy market
in large, the emphasis is on must and will, obligatory and busy, etc., which is not healthy
I think there is still plenty of choice. and what I mean is that zap did not export very much itself but simply resold it to another trading house or exporter. and is therefore not very active on the free market as a purchasing party. The smaller exporters who serve a number of countries and do not have a pool themselves are much more useful. they make the price. because they have to buy to be able to serve their customers.
Subscriber
southwest 30 September 2023
The difference between contract cultivation and free cultivation seems to be increasing every year in seed potatoes.
Overhead costs at the large trading houses are simply enormous, approaching 15 cents per kilo sold....
loom 30 September 2023
no excess costs
just a farmer/farmer or through a company like zap, smaller company spends less costs for both. much better
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