For the first time, Simplot-Clarebout is presenting its contract prices for the 2026 harvest year. The company is clearly targeting the Innovator segment. Furthermore, a focus on quality should make the difference, including a bonus/penalty system. To sufficiently reduce the acreage and restore a healthy market, the company is applying a general volume discount of 25% for most varieties.
With a new name, following the acquisition of the American company JR Simplot last summer, comes a new approach for Europe's largest potato processor. In the past, Clarebout often set the tone by announcing its contract prices early. This year, the company started contracting at the end of January, and the contract structure is different. There are Proposal A and Proposal B. The former is for 75% of the volume grown last year. Under Proposal B, the grower can contract for additional volume if desired. Those who grow Innovator can, however, secure 100% of the volume, just like last year.
Volume proposal
The processor reserves the right to adjust the requested volumes if necessary. Growers are asked to submit a proposal by February 14th, after which the buyer has a week to submit a counter-proposal. This is in accordance with Belpotato's code of conduct. "We hope growers realize that acreage and volume must be reduced to restore a healthy market," says purchasing director Yves Capoen. "The current situation can be directly traced back to last year's large harvest."
Fontane, in particular, is undergoing a significant correction. The season starts in early September, with a price of €13,00 per 100 kilos. This represents a decrease of €4,50, or 26%. For week 17, the price will be €20,75, which is €6,25 (23%) lower. Finally, week 26 will be €23,75, which is €5,75 (19%) lower. The decrease is smaller for Innovator. The price starts at €16,75, a decrease of €3,25 (16%). For week 17, the price will be €26,25, which is the same decrease. In percentage terms, it is slightly smaller, at 11%. The company no longer has an Innovator contract for week 26. Delivery ends at €27,50 in early June.
Season 6 weeks later
Instead of starting with early potatoes in week 28, the company is starting in week 33 this year. This is simply due to the large potato stock. However, they are cautious about quality, so late in the storage season. The main Innovator harvest is the only one to start in week 33 (August 9). The other varieties (Challenger and Markies) begin in September or November.
The price reductions aren't the whole story for the coming season. Simplot-Clarebout is introducing a quality system where growers receive a price increase or a price reduction, similar to the long-standing practice of (Dutch) processors. Plus and minus points are awarded for dry matter, color, length, grading, and defects, among other factors. The ideal specifications for each segment are considered. Fast food offers the largest increase, with a maximum of €1,50 above the cost price at Innovator and €1 at Fontane, delivered from storage. If the potatoes fall into the "catering white" category, the price increase is €1 at Innovator and €0,50 at Fontane. These bonuses are slightly smaller at the farm gate. If the potatoes fall into the "retail" or "oven" categories, a price reduction applies, equal to the price increase.
Quality conscious
"With the new contract, we're clearly focusing on quality," Capoen explains. "We want to make growers more quality-conscious. Delivered quality must come first, and only then volume. That's our message for the coming season. The entire European sector has created a situation that's not beneficial for anyone. If we want to regain our competitive position, we need to reduce our acreage—and therefore volume—and achieve a competitive cost price. We still see ample growth opportunities in the fast-food segment, so we're focusing on that. The acquisition by Simplot has also led to increased quality awareness."
Seed potato prices are decreasing again, by 17% to 18%, depending on the variety and delivery. Fontane 35/50 mm costs €67,00 per 100 kilos (full load, bulk) and Innovator €71,00. Capoen: "We already lowered seed potato prices last year. Adding up these decreases, it's roughly equal to the current contract price decrease." Anyone signing a contract commits to purchasing the required seed potato volume from Simplot-Clarebout as well.
Long-term relationships
Simplot-Clarebout's plan is to offer a contract to every grower who also grew potatoes for the processor last year. Only in exceptional circumstances will the partnership be terminated. A kilometer scale applies for transport, but that was already in place. The company is aware that the price reductions are painful for growers, but emphasizes that the pain for the industry is equally severe. "We have to get through this together," says Capoen. "That's why we're choosing growers who are willing to enter into a long-term relationship with us. By fighting for this together, we can hopefully regain our market share. We'll do this not only by lowering potato prices, but also by reducing land and lease prices, for example. Only then will we create sufficient margins."