Position of potato growers is getting stronger

Every year we look again at the potato areas that we have planted. An expansion often results in negative sentiment in the market. The mood among potato growers will not improve. But shouldn't we gradually start looking differently?

We have been seeing a chip market for years, which, albeit with fluctuations, is growing about 3% annually. Overall, the French fries market is growing 10 percentage points in 3 years. That is why an expansion in baking capacity has been going on for years in and around the large growing areas. The French fries industry follows the market demand and thus anticipates the future.

The most competitive potato chips are grown in parts of North America and Northwestern Europe. Due to various circumstances and factors, there are cultivation areas outside this area where the cost price of the potatoes is higher.

Don't blame French fries
Let me be clear: I am not participating in the defamation of our fries bakers. In fact, I feel a strong mutual involvement and dependence. But everyone has their own role and responsibility. Sometimes things form because the situation is. In particular, the industry's desire to be assured of potatoes and to fulfill this with contracts has now become a given.

It is not nice for a free grower that the market has become less dynamic as a result. Sometimes the free market seems to be a residual market. But it remains the case that choosing free or contract is the choice of the grower.

Circle is getting bigger
And yet something is going on, something is going to happen. So many potatoes in 3 years time is not just something. Gradually, the traditional cultivation areas are becoming full and there is less room for expansion. The circle is getting bigger and less yielding grounds are needed. After all, for a 3% expansion of the chips market, more than 3% of the land is needed to keep up with the processing.

Because the cost price on these grounds is often higher, a corresponding price is also required. And that is in the interest of all potato growers. The relative bargaining position is therefore improving. We must be aware of that. There will be more room to negotiate. Not only about price, but also about conditions. Be aware of this whether you are a free or contract grower. 

Earlier I wrote about my wish to participate in the chain as a grower. The enthusiasm of the French fries makers has its limits and that is not motivated by bad results. With a growing French fries market and self-confident growers, new concepts should become possible. An improvement in the position of the grower who is not against, but for, together with the processors. Self-confident farmers are the future.

Jaap Haanstra

Jaap Haanstra is an arable farmer in Luttelgeest and chairman of the AgriFacts Foundation. In addition, he has worked for various agricultural organizations over the past 30 years. Haanstra writes his columns in a personal capacity.

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