For the first time in four years, the cost price for consumption potatoes is not rising in all cases. After years of fixing cost increases, arable farmers are faced with more stability. For this, the yields per hectare must remain the same. There are also differences between sandy and clay soil and the delivery periods.
For the sixteenth time, NAV has published a cost price calculation for consumption potatoes. After three years of a sharp increase in the cost price, it will stabilize in 2025 for potato growers on sandy soil. In both delivery periods (field and April), a slight decrease is even visible. For cultivation on clay soil, the cost price will still increase.
Downward trend
Since the beginning, the NAV has been calculating with a yield of 50 tonnes per hectare for ex-land on clay soil and 55 tonnes for sandy soil. In April, in the example, this is 52,25 for sandy and 47,5 tonnes for clay potatoes. Because the yields of potatoes show a downward trend for many growers over a longer period, the Working Group on Potato Consumption (WCA) has decided to let the yields decrease integrally by 1,5 tonnes in the calculation example. In that case, the cost price also increases on sandy soil.
Boerenbusiness calculates with the same hectare yields to get a good comparison year on year. The most important thing is that growers individually make a cost price calculation with their own average yield, which is different for each company.
Cost price cent higher
For clay soil, the cultivation costs will rise to €2025 per hectare in 9.775, for delivery from the field, and €11.765 for delivery in April. Both are records. With the previously mentioned yields, you are talking about a bare cost price of 19,6 cents and 22,5 cents per kilo of potatoes. That is one cent more than in 2024. On sandy soil, the bare cost price will be 18,5 cents and 20,6 cents. That was 2024 and 17,8 cents in 20,2.
The NAV, but also the POC with their cost price calculation, calculate with a standard 15% risk margin for the potato grower. These are not included in the above figures. The question is whether this percentage is still sufficient, suggests the NAV. After all, the risks due to, among other things, the climate and an ever-shrinking package of crop protection products have increased. This also means that the margin must increase in order to absorb blows. In practice, this means that the cost price increases by another three cents, regardless of the delivery period. Irrigation costs and other measures are also not included in the costs.
Is the contract price cost-covering?
In five years, the cost price for a grower on sand has increased by a fifth. On clay soil, this is even almost forty percent. We are then talking about more than €3.200 that has been added for delivery from storage in April. Whether the contract prices that sufficiently compensate is not yet known for the Dutch industry. The Belgian processors keep the prices largely the same, with a small decrease in the off-land segment. If the factories here also follow this line, then the off-land contract is below cost price and the one for delivery in April is two cents above, in this calculation example.
It is mainly the allocated and land costs that will increase next season in the calculation example of NAV. The allocated costs increase by €675 per hectare on clay, which is mainly due to higher seed potato costs and crop protection. On clay, this increase is more modest at €290. The costs for land and buildings increase in the example by €143 on clay and €150 for sandy soil. The cultivation costs increase by a few tens of euros.
Fertilization costs
Where an advantage is achieved is in the fertilization costs. The costs of artificial fertilizer decrease slightly in the example and potato growers receive money for the supply of liquid manure. This year the proceeds from this were still set at zero, which in practice probably turned out differently. Anyone who was paid €35 per cubic meter for 10 cubic meters of liquid manure will quickly see their cost price drop by one cent, just in terms of the supply of manure. If you can save on artificial fertilizer, the difference will be even greater. Incidentally, growers in NV areas (nutrient-polluted areas) will have to deal with a nitrogen discount from the coming growing year, which means that a quarter less nitrogen may be applied compared to 2023. The loss of yield from this has not been included in the calculation example.
Whether you can grow well as a potato grower for these prices is something everyone has to decide for themselves. That starts with an honest and thorough cost price calculation. In addition to the NAV, the POC also has a very extensive cost price tool available for its members. It largely corresponds and uses the same figures, often even more extensively. The results of this have been validated by, among others, WUR and accounting firms.
Competitive position
The NAV overview clearly shows that cultivation on sand and clay is growing further apart. The €950 cost difference from the field and €1.000 from storage does not seem much, but it quickly adds up to three to four cents in the cost price. In addition, the yields of French fries potatoes such as Fontane are usually higher than the tons mentioned. With a contract price of €27,25 for delivery in April, a grower on sand will have €3.478 per hectare left. For the same grower on clay soil, that is €1.179. On clay soil, you therefore have to rely on either longer storage, or other varieties or a different sales market. The WCA also looked at the cost price for table potatoes. That is much more difficult to determine because the yields and quality requirements vary greatly per variety. Here it is concluded that the cost price is certainly 2,5 to 3 cents higher.