The independent grower earns a lot of money in a market that is 'overcontracted'. That could have been a statement at a symposium about potatoes. This is indeed the case when it comes to non-Fontane varieties, such as Innovator and Agria.
In the case of Agria, at the end of week 47 there was a notification on the TransactionApp of €30 per 100 kilos collected, delivery in December. However, the maximum market price for which Fontane is settled is €15 per 100 kilos. Belgapom also continues to list €12.50 without hesitation on Friday, November 22, with the remark that more is paid for dry batches. The question then arises why they do not communicate these prices. Viaverda does communicate this by putting €12.50 to €17 on the board a few days earlier.
Dilemma
According to expectations, the dilemma of the market will not improve in the coming months. There will be demand for free Innovator, Agria, and also Markies, while there will be sufficient supply of the bulk variety Fontane, which will still have a long way to go towards €20. The best illustration of this dilemma is shown by the German Reka price on Friday, November 22, which lists €15 for Fontane up to €23 for Innovator, a price difference of as much as 35%!
With the upcoming Interpom fair, the next harvest year is usually initiated and the first ideas are gathered regarding contract prices. In this sense, Belgian processors often take the lead. From the growers' perspective, the potato market is increasingly felt as restrictive. The freedom to grow certain varieties in certain volumes under contract has clearly been limited in recent decades. On the other hand, contract prices have risen significantly in recent years, and thus, despite the higher production costs, the financial result per hectare gives a positive outcome with a normal harvest. The fact remains that a portion of the contracted potatoes are settled based on daily prices derived from various market quotations (if available...). Therefore, the fact that Belgapom still lists €12.50 at least raises questions, as growers with a contract are settled for the extra kilos, while in the free market, €15 and more has been paid for Fontane for weeks.
Return
Many growers, especially in the Netherlands, are looking for alternatives outside of contracts, as they see that there is more to gain in the free market outside of Fontane. The positive price differences of varieties such as Innovator and Agria are no longer coincidental. However, the availability of seed potatoes is often a problem, especially when it comes to Innovator, where the main buyers (processors) have the most say. On the other hand, there will be enough growers in Europe who are satisfied with the contract prices. The return per hectare has been good in recent years compared to other crops. What is settled for the additional potatoes seems to matter less. In this sense, the dilemma between potato growers in the Netherlands and their colleagues in neighboring countries will increase.
