The market for chips has collapsed due to a drop in demand, now that the catering industry is closed due to the corona virus. The result is a surplus of chips potatoes, for which a solution must be sought. How do the participants in the Crop Tour, all growers of Innovator, view the situation?
We called the growers of the plots, which are spread across the Netherlands, and asked for their opinion.
Escharen: Fritesmarkt is picking up again in the summer
The grower in Escharen has the feeling that demand should return in the summer. You can't keep locking people up. In the summer they want to go on holiday or take another activity, which also involves eating French fries. This grower is not going to plant fewer potatoes per hectare or adjust his acreage. He aims for a maximum of kilos per hectare, his expectation is that the French fries market will pick up in the summer and return to equilibrium.
Scharendijke: Afland sales will be the hardest
This grower is considering planting thicker. He still has to buy some seed potatoes. He is thinking about buying less seed potatoes than in previous years. He expects that the growers who sell the chips potatoes on a free market will run into problems. The stock from harvest 2019 will still be on the market when the new potatoes from harvest 2020 come on the market. This creates a supply surplus, which causes the price to fall or remain low.
Fijnaart: Confidence in industry remains
The grower in Fijnaart maintains confidence in the industry and his contract. In recent years, this grower has been able to deliver the agreed tons, despite the drought. If the industry is not able to purchase the potatoes this year, the grower expects the industry to come up with a different solution.
Hank: Bad chips market until New Year's Eve
The grower from Hank has little faith in a good price in 2020. He expects the price to have grown towards a 'normal' level after the turn of the year. There are more disadvantages than advantages to keeping a stock that does not help the price.
Someren: Considering planting thicker
'Plant fewer potatoes' is often heard as advice for the coming year. The grower from Someren is considering this and hopes that other growers will seriously consider doing this too. Because fewer potatoes come with the new harvest, the stock can be used up, so that you can grow back sooner to a decent price for the chips potatoes.
Giethoorn: Looking for an alternative market
This grower is curious about the alternative markets for the surplus chips potatoes. Is it possible to use the potatoes as feed or does it have to go into the digester? The biggest influence on the market is abroad. If the measures against the corona virus have sufficient effect there, the hope is that the market will open abroad and exports will get a boost. The grower expects things to improve after September 1. The stock can no longer be sold because it can no longer be held. After September 1, there is hope that 'normal' life in the Netherlands will be resumed.
Dronten: Growers are strong with contracts
The grower from Dronten hopes that it will be possible to partly regain market forces. Because the industry is obliged to purchase a lot through contracts, the growers are in a strong position. However, he expects it to be a difficult time until August. When the new crop is started, the current stock can no longer be sold. Then a better balance between supply and demand can be sought.
Middenmeer: Difficulties for land sales
“The growers who have no storage options will have a hard time”. Because growers do not have storage, the potatoes have to be sold together with the stock that is still available from the previous harvest. This has no positive effect on the price. The grower from Middenmeer has a smaller area this year. The grower has decided not to rent a plot for chips potatoes anymore. Not because of the coronavirus, but the circumstances of this plot. He is happy that he made this choice now that the chip market has collapsed.
Spijk: Switch to table potatoes
The grower from Spijk has decided to intervene and change. This year there will be no chips potatoes, but table potatoes on his plot. The grower has grown table potatoes more often and after asking the trading house whether there is still seed for this, the grower decided to switch. He expects that the market for table potatoes next year will be a better market than French fries potatoes "Everyone will continue to eat a potato in the Netherlands, but fewer chips will be eaten next year."
Afland gets problems
Most growers expect difficulties for the growers who do not have storage and sell the harvest directly from the field. Several growers have already heard that the industry/customers is asking growers who sell from land to downsize and plant fewer potatoes. This is to be able to sell the stock and not to create too much supply on the market of the new harvest. Until now, this has been done on a voluntary basis, but growers suspect that the industries and customers are looking at how they can impose an obligation on growers.
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