The contracting of French fries potatoes for the 2019 harvest has started cautiously. In addition to the price and conditions, the seed potato supply is also a 'hot topic' for growers and buyers. A lack of starting material dictates contracting and thus also the acreage.
More than ever there is one discussion regarding the fixed price contracts for the French fries potatoes. The first contracts for land delivery have recently appeared. These represent a significant price increase, but will this convince growers and lead to an increase in area?
Seed potato supply
In addition to the contract prices and small print, which is a topic of discussion for the coming season, there is the seed potato chapter. No contract, no seed potatoes, that's what it sounds like. Growers who are able to freely purchase seed potatoes are presented with significant price increases (for both early and late varieties).
Insiders also mention that Dutch processors, with the 3-year contracts with the seed potato trading houses, have an advantage over Belgian competitors. The Belgians' 1-year agreements do offer flexibility, but they come second (after the fixed agreements).
Availability determines area
The early varieties in particular suffer from shortages (up to 40%). This is partly filled by a fine size sorting. However, cutting excess size is made more difficult, because many 50 millimeters upwards are sold for consumption. Higher consumer prices have made this attractive. The availability of seed potatoes will dictate the acreage in 2019, not the contract prices. Agrico and HZPC already announced in October know that the availability of popular chip varieties for the main harvest has improved.
On the variety show Agrico director Jan van Hoogen also underlined this. He calls the availability disappointing for many. In their own words, the available volumes are distributed as best as possible. Agrico estimates that 5% to 10% less has been harvested for the main varieties. HZPC estimates that there is 15% less of the Innovator and Ivory Russet varieties. In addition, there is the lower quality. However, this mainly applies to the higher classes, so the problems are only noticed later by consumer growers.
More expensive seed potatoes
"Indecently high amounts are paid for seed potatoes," says Van Hoogen. The 3-year contracts are given priority over other agreements at the trading house. The multi-year contracts do not always have a fixed payment price, which means that prices also rise here. The contract prices for the consumer grower must therefore increase to compensate for more expensive seed potatoes.
It is not the first time that the sector has faced shortages in starting material. After the special growing season of 2016, there was a shortage of popular chip varieties. The much-discussed growth crack standard was expanded, more batches were cut and more alternative varieties were planted.
Area increase
However, the deficit was then (about 10%) much smaller than it is now. Nevertheless, the consumption area increased by almost 2017 hectares in 3.000, according to CBS figures. This year there was little addition (according to provisional figures). This concerns an increase of 136 hectares to 76.440 hectares of ware potatoes.
The European acreage can probably only increase significantly in Northern France, but the availability of seed potatoes probably does not allow this.