News Potatoes
White (or gray) smoke for PotatoNL
It took a while, but after six months there is progress in the case of the Dutch PotatoNL. Processors, trade and growers represented in the organisations LNCN, ZLTO (both growers), NAO (trade) and VAVI (processors) still want to continue with the Dutch price and will start listing on January 6 (last listing was July 8).
The procedure for the benchmark has changed. From now on, an independent market master will determine the price based on the transactions and prices submitted. There will no longer be discussions within the price committee among the various contributors. BO Akkerbouw will take on the role of independent market master. In the 'old' setup, the industry organization was already responsible for collecting input from the processors. This input was anonymized and published in the PAT list. "The new procedure will be evaluated regularly in the coming months", writes PotatoNL.
Different perspectives
It is somewhat simplifying, but disagreements about what should and should not be included in the Dutch potato prices were at the root of the friction within the PotatoNL listing committee. From the growers' side, there was criticism of the additional kilos that are not allowed according to the protocol but were still included. Processors were bothered by the input from growers 'in the country', oral agreements between buyer and seller where no purchase agreement has (yet) been drawn up or shared. Parties also pointed to competition law, which should be an important framework for the listing.
The absence of a Dutch benchmark price for the 2024 harvest potatoes is difficult for the growers. A reasonably undisputed reference price was missing. Belgium, Germany, and France do have their prices, but they are not always representative of what is happening in the Dutch market. Growers with a knack for trading still manage to get their information, as has been shown this season. Whether through word of mouth, transaction apps, indicative prices, or buyers' tenders. 'Did we have to wait half a year for this?', as an insider sighs, is perhaps the most apt comment on the 'new' setup of PotatoNL.
