The export of seed potatoes is facing a number of challenges this year. The situation in the Middle East brings uncertainty, but above all it is an art to meet the demand for higher classes. And they also notice this at trading and breeding company HZPC.
In 2019, the seed potato sector suffered an extremely high reduction percentage of 37% for the second year in a row. Although Gerard Backx, CEO of HZPC, indicates that the percentage at HZPC is lower than the national average, he is aware of the challenges that come with this.
To start with the restrictions in the current export season. "There are several countries that only receive higher grades of seed potatoes. Other challenges are payment restrictions in a number of countries and the situation that arose in the Middle East in December. This creates uncertainty, because not all of these countries have yet been supplied. "
Don't ask excessively
Within Europe, sales of seed potatoes are running as expected. Backx characterizes the current season and associated price level as 'reasonable'. "Demand is good, but not excessive." According to him, it remains to be seen how the rest of the season will be colored. "A lot depends on how much of the total harvest can actually be sold as seed potatoes. We will have more insight into this later in the season. HZPC will announce an initial forecast price at the beginning of March."
In the meantime, the CEO is looking at the longer term, and in particular the effect of the high reduction percentage. "This mainly affects the propagation of various varieties. The development of the newer varieties in particular will be slower than planned."
Nevertheless, Backx does not expect any area shrinkage. "For HZPC, we allow the area of seed potatoes in Europe to grow slightly every year. New growers are certainly welcome for this. In the Netherlands, the area cannot grow much more, provided you do not want to make concessions on quality. Abroad, the percentage is more growth possible." Currently, approximately half of the HZPC seed potatoes are in the Netherlands and the rest abroad. "This allows us to achieve a reasonable spread of risk in terms of quality."
High virus pressure remains
Backx expects that the virus pressure in seed potatoes will still be high next year. "As long as we do not have a severe winter, the lice pressure will be high again. The same starting situation will then arise as last year. Of course, things can also turn out differently, but the virus pressure will not immediately drop sharply. We have experienced this situation before and it will take a few years."