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'Everyone can now earn a good living'

7 February 2025 - Niels van der Boom - 12 comments

Potato processor McCain follows the line of stability in its fixed price contracts for the 2025 potato harvest. Only ex-field, for the Fontane variety, a price correction is visible. 'It is important that everyone in the sector can earn a good living', says purchasing director Hans Langereis. 'Only by working together can we ensure a positive future for potato cultivation in the Netherlands.' That is what the Canadian company is committed to.

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It should come as no surprise that the contract prices for chips potatoes at McCain will hardly change this year either. Only in the field segment will the company implement a reduction for the Fontane variety. This will go from €17,50 to €17,25 per 100 kilos. Innovator will remain at €19,75. In the other two delivery periods (week 17 and week 26) the prices will remain unchanged. €27,30 and €29,25 for Fontane and €29,70 and €31,75 for Innovator.

Price differences
"During the entire contract period, the difference between Fontane and Innovator is now €25 per tonne," Langereis explains. "Our pricing reflects the supply situation. From the barn, it is sometimes tight at the end of the season, while from the field there is an oversupply. More processors are struggling with that. Hence the big price jumps in the free market: from €60 for the last old potatoes to €8 for the new harvest. Such a difference is not desirable for anyone."

McCain is facing higher seed potato prices this year. "We try to work budget neutral and choose to pass these on to the growers," says Langereis. "McCain acts as a conduit between trading house and grower, but we do have work and costs. Staff is concerned with planning and delivery. If a purchased batch is disappointing, it is not delivered to the grower and that is the risk for the factory. Good service with seed potatoes is appreciated by our growers. We therefore think it is fair to pass on the direct price increases."

'Higher contract price was necessary'
In four years, the company saw seed potato costs increase by up to 75%. At the same time, contract prices also increased during this period. "From €75 in the field segment to more than €100 per tonne from the shed," he knows. "These increases are good for the sector as a whole. A grower can earn a living from consumer cultivation, as a processor we can make do with this and the seed potato grower also gets a fair price. There is no longer much room for manoeuvre in the sales market for end products. You can see that the tide is turning and the Netherlands - but also other European countries - are losing their competitive position if price increases continue. We must prevent that."

Langereis is well aware of the risks that growers run. "That is why it is so important that money can be earned. That long-term agenda keeps us busy. Look at crop protection and fertilization, for example. As a sector, you do not want to end up in a position where you are at the mercy of public opinion, as we see happening with some other crops or animal sectors. By taking action now, we will hopefully prevent that."

Regenerative ambitions
One of the ways to stay ahead is regenerative cultivation. The Netherlands is ahead of other European countries in McCain. Langereis: "Last year we doubled the area. This year we aim for at least 30% of the total McCain area in the Netherlands to be regenerative." Growers who participate in this program, which has been in place since 2023, receive €5 per tonne, on top of the basic price. There is also a 3% interest discount on relevant investments, of which Rabobank takes 1,5% and McCain the other half. Langereis is pleased to see that more fellow processors are introducing similar initiatives, with a view to the future of French fry potato cultivation.

According to the Canadian family business, attention to matters such as the environment and surroundings does not have to be at the expense of potato production. It has a solid growth ambition towards 2030. In the Netherlands, there are substantial investments in Lelystad and Lewedorp, but in France too, production expansion is being worked on. The company also wants to become locally active in more places in Europe. "The growth ambition is not just focused on fries", the purchasing director adds. "McCain's ambition is to increase the share of McCain products on the consumer's plate. Think of all kinds of snacks made from potatoes and other vegetables."

Ground tare
Last year, McCain relaxed its conditions for potato tare. This year, the processor announced that it would be looking more strictly at soil tare and batches with foreign materials. "We sometimes see excesses where batches are delivered with 25% soil, which can cause a factory to come to a standstill in the worst case. The loss of costs is then enormous," says Langereis. "This also applies to batches that contain stones, wood or glass, for example."

Langereis has been working as a permanent 'raw materials director' at McCain for a year now, after having previously fulfilled this role in an interim capacity. He can draw on three decades of management experience at concerns such as Unilever, FrieslandCampina, The Greenery and Cargill. He has made his mark in the potato world and is not afraid to ask critical questions or express himself publicly with a fresh perspective. For example, last summer he performed at the potato demo day.

Transparent, reliable, stable
Langereis sees the reintroduction of PotatoNL as an important step forward for the sector. "I am very happy that the growers, traders and processors have once again established a transparent and reliable potato quotation together," he says. "It shows that we can achieve things together. I still too often feel the sentiment of 'them against us' among growers. That is a shame. If we want to progress as a sector, we can only do that together. Not aiming at each other, but aiming together for a healthy future in the Netherlands."

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