Free grower earns gold, outside processors

In the latter case (Agria), there was a notification on the Transaction App at the end of week 47 of €30 per 100 kilos withdrawn, delivery December. The maximum market price for which Fontane is paid is €15 per 100 kilos. Belgapom also continues to quote €22 on Friday 12,50 November without batting an eyelid, with the remark that more is paid for dry batches. The question then immediately arises why they do not communicate these prices. Viaverda does so by putting €12,50 to €17 on the board a few days earlier.

splits
The market's split is not expected to improve in the coming months. For example, the demand will be for free Innovator, Agria but also Markies, while there will be sufficient supply of the bulk variety Fontane, the road to €20 of which will still be long. The best image of this split is shown by the German Reka listing, which on Friday 22 November listed €15 for Fontane to €23 for Innovator, a price difference of no less than 35%!

With the Interpom trade fair in the coming days, the next harvest year is usually started and the first ideas are gathered with regard to the contract prices. In this sense, the Belgian processors are often the first to take action. From the growers' perspective, the potato market is increasingly perceived as restrictive. The freedom to grow which varieties in which volume in terms of contract has clearly been limited in recent decades. On the other hand, the contract prices have risen sharply in recent years and, despite the higher cost price, the financial result per hectare with a normal harvest is a plus. The fact remains that part of the contracted potatoes are settled on daily prices that are derived from the various stock exchange quotations (if there are any...). The fact that Belgapom is still quoting €12,50 raises questions at the very least, since growers with a contract are paid for the extra kilos on this basis, while on the free market €15 and more has been paid for Fontane for weeks.    

Performance
Many growers, especially in the Netherlands, are looking for alternatives outside the contracts, since they see that there is more to be gained in the free market outside of Fontane. The positive price differences of varieties such as Innovator and Agria are no longer a coincidence. However, the problem is often the availability of seed potatoes, of which the most important buyers (processors) certainly have the most say, especially when it comes to Innovator. On the other hand, there will be enough growers in Europe who are satisfied with the contract prices. The yield per hectare has been fine in recent years compared to other crops. What is then paid for the potatoes supplied with the product seems to be less important. In that sense, the gap between potato growers in the Netherlands and their colleagues in neighbouring countries will increase.