The potato trading company HZPC will no longer offer contracts for the cultivation of French fry and table potatoes starting in 2026. The company has announced this to growers.
Contract farming of both French fry and table potatoes has declined in recent years to a relatively minor activity within HZPC. This year, the total volume of these potatoes has shrunk to less than 100.000 tons, says Peter Ton, Operations Director of Royal HZPC Group.
The most important argument, however, is that HZPC wants to continue to focus on marketing genetics. "That's what it's all about. With the arrival of the new CEO, Hans Huistra, there's been a recalibration, and we've explicitly chosen to combine our seed potato activities. This means we're also taking that into account in our investments."
Focusing on core activities means that the ware potato trade no longer fits within the group. "Our strategy is focused on selling seed potatoes and successfully introducing new varieties. Those are our core activities, and we want to excel at them," adds Hans Langedijk, who is responsible for seed potato and ware potato sales in the Benelux.
The contract farming of French fry potatoes consisted almost entirely of Innovator potatoes. "We play a modest role in that cultivation. However, it requires a comprehensive set-up. It requires specialized personnel, a quality laboratory, and certifications. You have to ask yourself if you want to invest in this on this scale. On top of that, you're competing with your buyers."
Consolidation among packers
The latter also applies to table potatoes. In recent years, there has been extensive consolidation among packers in that sector. "Even though we're small, we are a competitor through contract farming. In the past, we also imported a large volume, but that has dried up in recent years. In the Benelux, packers now manage their own year-round supply of product to retail."
Several packers now organize their own contract cultivation. HZPC says it is doing everything it can to relocate its current contract growers. Some of this has already been achieved. "Individual solutions are being sought to determine where growers can find suitable suppliers. We can't guarantee that we'll be able to guide contract growers to other buyers, but we are certainly doing our best."
This also applies to growers who still have a contract for French fry potatoes this year. Ton emphasizes that the dual-purpose grower scheme will remain in place for these growers. This allows them to grow seed potatoes of specific varieties, such as Innovator, for their own consumption crops.