Digital selling requires perseverance

Service2Potato launched in August 2024. Since then, the market has been on quite a rollercoaster. What has that been like for you?
JK: "We've seen two extremes. From the sky is the limit in the summer of 2024 to the current low. Seasonal influences are always present, and I've seen them many times in my forty years on the potato futures market (with brokerage firm De Vries & Westermann BV, ed.). Growers have been spoiled in recent years with strong demand from the industry. Free lots were usually sold quickly. That's different now, because only fixed agreements are honored. As a potato grower, you do your utmost to grow the best product, but even selling free lots requires considerable effort.

How is the potato sector approaching online buying and selling?
JK: "We try to do business as broadly as possible. One of the shareholders is Nedato, which of course also uses the platform itself, but S2P is explicitly independent. Growers typically only know a limited group of buyers. By trading online, you significantly expand that network. The world is becoming increasingly digital, and that trend is not stopping. S2P's shareholders recognize this as well. Growers, traders, trading houses, and processors all benefit from a digital platform. Another significant advantage is the transparency it offers."

In addition to facilitating potato sales, would you also like to share pricing information?
LK: "Parent company Service2Trade has been active in the top fruit sector: apples and pears since 2012. It offers year-round insight into pricing and influences pricing, especially at the beginning of the season, when produce is sold ex-field, or "off the stem" in fruit growing terms. With the Fresh Monitor, S2P offers a comprehensive transaction list with a wealth of information. Not only details about the product, but also the types of transactions. A transaction between two trading parties is also included in the list, while you don't see it in the quotations. All transactions are published anonymously, but you can see the region."

How do you like the method of auctioning potatoes for both sellers and buyers?
JK: "That's something people have to get used to. It comes from the fruit world, where it's very common. We also do business through mediation. The parties always go through the platform, but we handle the trading ourselves and connect buyers and sellers. These are no longer just Dutch companies. Parties from Belgium and Germany also know where to find us. It's important to continuously match supply and demand."

Have there been any technical adjustments to the platform in the past period?
LK: "We made the biggest progress in the first six months, but a platform like this is never finished. You keep making improvements. If there's a need for something, it's addressed. For example, the languages ​​German, English, and French have been added. Last year, a partnership with the Tholen potato auction Alvantho was announced. That took some technical work, but next season it will run on a separate part of the platform. Alvantho can then post its members' batches there."

As you yourself indicated, the current market is challenging. There's hardly a market at all. How can this develop further?
JK: "There's a huge imbalance between supply and demand. Don't forget that when the market gets going, it can also go very fast. I wouldn't be surprised if people suddenly pay 10 cents. We've seen this kind of fluctuation before. For example, during the coronavirus pandemic. The world hasn't suddenly stopped eating fries; the problem lies in the fact that sales aren't growing any further. Balance will return sooner or later."

Next season, factories will make different agreements with growers regarding acreage and volumes. Could this affect S2P?
JK: "A shift is coming, shifting the risk to growers. Can factories meet their needs with fewer fixed tons? That could change the market. Growers are investing very little in marketing their products. The current and next season could be a signal that things need to and can change. If more sales opportunities, such as the futures market, disappear, you'll notice the consequences later. You'll only miss it when it's gone."

You could also say that free trade in potatoes is outdated.
LK: "I think younger generations pay less attention to buying and selling. It's hardly addressed in education either. You have to come out of your shell and become active yourself. That's perceived as difficult. Moreover, a lot of mediation still happens by phone. Young people, in particular, are less likely to pick that up. With S2P, we believe we have a gem for those who have free potatoes for sale."