Once again, the sector loses a pricing instrument

The PAT was launched in 2018 at the initiative of the Dutch potato processing sector. Four of its members—Aviko, Farm Frites, McCain, and Lamb Weston (Meijer)—committed to publishing all transactions of potatoes suitable for frying via the platform. Agristo, although active in the Netherlands but a Belgian company (and therefore reporting to Belgapom), was the only major processor not to participate. The PAT Index fulfilled a long-held wish to provide transparency in potato purchase prices.

Legal market master
When asked, BO Akkebouw chairman André Hoogendijk explained that the reason for discontinuing the PAT is due to changes in the quotations. "At the request of the processing industry, BO Akkerbouw facilitated the submission of transactions via the PAT for several years. BO now acts as the legal market master for the weekly potato quotation. This request came from the PotatoNL steering committee. In anticipation of PotatoNL's new working method, the processing industry has therefore stopped submitting transactions via the PAT."

BO Akkerbouw not only facilitated the transaction transfer, but also officially acted as legal market master, providing the facilities to have transactions validated by an accounting firm. Whether and how often this option was used is unknown.

From Agriprins to PAT
The platform's origins can be traced back to the eventful online price information system Agriprins, launched in 2012. From the outset, this platform was met with skepticism from growers and their advocates. Potato trading companies also saw little merit in the system, which, according to the founders, was primarily intended to bring transparency. Although a group of 250 growers was involved in submitting transactions, this did not lead to the desired results. The price picture was considered too one-sided.

After just a year, the agricultural exchange LNCN withdrew from Agriprins, claiming that not all completed transactions were being reported. This remark was also not easily dismissed by the PAT. Ultimately, there was no longer sufficient support from growers, and potato growers proved unwilling to pay for the system, which operated under the auspices of the Productschap Akkerbouw (Arable Farming Product Board).

Criticism
With a new start as PAT, the processors – united in Vavi – decided to take matters into their own hands. This did not alleviate the criticism. The frequently heard argument about submitting all transactions, to which the participants had committed, was still heard. One of the requirements was that batches had to be collected within one month of purchase, or listed with a price reduction for storage costs. If this deadline was not met, the transaction did not have to be reported. This, among other reasons, meant that these transactions fell just outside the obligation.

The argument that not all transactions were submitted is valid. This was also evident from a analysis that Boerenbusiness in 2022. At the beginning of 2022, a good 6.000 tons were registered. Less than 3% of the total processed volume in the same period. Moreover, these were mostly relatively small batches of 100 to 250 tons.

Price range
There's also the price factor. Comparing the PotatoNL listing and the PAT Index shows that the latter consistently yielded a lower price in the last season (2023-2024). The price range varies between €1 and €5 per 100 kilos. Growers who were billed based on the PAT were therefore worse off. Incidentally, this range was considerably smaller in previous seasons, and the PAT was sometimes even slightly higher than the stock market listing. Logically, a reduced input has resulted in a wider price range.

At the start of the 2024 harvest year, Vavi members decided to stop submitting electronic transactions to the platform, while negotiations for PotatoNL 2.0 were in full swing. Even after the national listing launched in early January 2025, the list remained empty. The Index was a thorn in the side of growers and the stock exchanges and was therefore not revived. This has now officially come to an end.

Transparency is decreasing
It's fundamentally a shame that the Dutch potato sector is once again without a pricing tool for (french-fry) potatoes. It's becoming increasingly difficult to get a good picture of market developments. The very argument of a lack of transparency is now further diminishing it. The Netherlands is currently the only EU-4 country without an active listing for French-fry potatoes. Growers have to rely on their own channels for price information, such as the VTA transaction list and the DCA Transaction App.

The lack of interest in prices during a season without a free market, as we currently find ourselves in, is understandable. Nevertheless, the disappearance of the PAT is indicative of developments within this sector. Advocates are also failing to adequately convince their supporters of the usefulness and necessity of reliable pricing.

This raises the question of to what extent potato growers still need a price information system. Several reasons can be cited: significantly better contract prices, company-specific agreements with buyers, and a changed risk profile, to name just a few. As the sector shrinks and its scale increases, the need for a free market is apparently diminishing.

buy 770.000 tons
In 2024, Dutch companies processed 3,84 million tons of French fries. The industrial coverage rate in our country is approximately 80%. This means that 770.000 tons (almost 15.000 tons per week) of potatoes are purchased freely by companies, either through bulk deliveries or through 100% free transactions. No price has yet been set for this significant volume.

It's worrying that it's becoming increasingly difficult to do this in a transparent and fair way—through the futures market, stock exchange listings, or an index. This can also impact the yield of the crop.