Growers must learn to think big

This season, the average grower won’t be able to realise a cost-plus. Seventy to eighty percent of the harvest in leading potato countries in Northwest Europe is already predestined for a particular customer and to a large extent for a fixed agreed price.

This season, the average grower won’t be able to realise a cost-plus. Seventy to eighty percent of the harvest in leading potato countries in Northwest Europe is already predestined for a particular customer and to a large extent for a fixed agreed price. The potato processing industry needs more raw material every year, 30 percent over the last 5 years. In addition, there’s the export of ware potatoes from Northwest Europe, which is also growing. Processors in turn sign sales contracts at agreed fixed prices. They can do this because of the guarantee for the raw material at a fixed price. Even with a bit of backward integration, the industry has a ‘grip’ on the seed potatoes. The grower, on the other hand, bears a relatively high proportion of the risks.

 

 

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