The table potato cooperative PotatoNext has informed its growers of its plans for next year. The cooperative is reducing its total acreage, citing the intention to better align supply with the retail market. A new pool for premium varieties intended for export will also be established.
The PotatoNext cooperative was founded in 2023, following the merger of the table potato activities of Agrico, Nedato, and Leo de Kock. It has approximately 200 affiliated growers across the Netherlands. The organization has already faced several challenges. This began in the first season with a potato shortage following a historically late planting season, forcing the purchase of expensive potatoes on the open market. Last season, the opposite was true, with 10% of the volume remaining unsold. This season is also proving difficult.
Competition
Despite the greatest pain being felt by the French fry potato sector, the table potato sector is also experiencing significant pressure due to good harvests in Europe. Batches are sometimes dumped on the market, and PotatoNext is suffering as a result. "There is competition for retailers from seed potato trading houses, with oversized seed potatoes, other pools, and even uncertified French fry varieties," it writes in a letter to its members. This is detrimental to the quality offered in supermarkets. That the quality on the supermarket shelf is not always nice, noticed Boerenbusiness PotatoNext also recently saw this. It sees itself as an advocate, particularly for better enforcement of the PlanetProof certification, which is also practical for growers.
Due to this pressure, the cooperative is forced to reduce its acreage next year. This concerns potatoes sold to retailers. This season, the total acreage was just under 3.200 hectares. This will be reduced to 2.500 hectares next year – a reduction of 22%. According to the cooperative, this will allow for better demand management towards retailers and small packers and prevent internal competition from (firm-boiling) varieties.
Premium export pool
A new development is the formation of a premium export pool. Its structure is not yet fully clear, as work is underway. This pool is intended to facilitate the broad distribution of premium varieties, rather than selective varieties that can only be sold to retailers. According to the cooperative, this will result in a significant reduction in the share of waxy potato varieties, but growth in other varieties. This pool is estimated to have room for 300 to 650 hectares of potatoes. PotatoNext is not disclosing exactly which varieties it has in mind, but Agria is the obvious first choice. Moreover, it is a variety that performs well in the growing regions where the cooperative operates, although many Dutch exporters are already active in this sector.
Pressure on table potato sales is nothing new. In ten years, this segment has more than halved in the Netherlands, writes PotatoNext. As a major supplier to Albert Heijn, it fortunately has a strong and stable customer base. The volume of potatoes on the shelves of the Zaanse supermarket has thankfully stabilized. Next year, PotatoNext even hopes to increase this volume. The ambition is to also establish fixed agreements with small packagers.
Albert Heijn has its own sustainability program, "Better For." PotatoNext also works with PlanetProof. One option is to split the potato volume into several parts, with the potatoes for Albert Heijn going into a separate pool. This would eliminate the need for two certification schemes for these growers. An added benefit of the export pool is that certification is not mandatory.
Cultivation for all members
With these steps, the cooperative hopes to better align its potato supply with market conditions and deliver greater added value. A reduction in acreage and volume will hopefully create a demand market, where it has currently experienced two seasons of oversupply. The goal is to have all current members growing potatoes by 2026, the cooperative reports. One small consolation is that seed potato prices are generally slightly lower than last season. By purchasing later, the cooperative hopes to benefit more from this.