HZPC ends participation in HZPC Sverige Ab

HZPC has decided to end its participation in HZPC Sverige AB (Sweden, Billdal). Reason for the decision is insufficient profitability, caused by the slow modernization of the Swedish Seed potato market. Through several distributors, HZPC varieties will continue to be available on the Swedish Seed potato market. 

Going forward, seed potatoes for the Swedish market will be grown in Finland and the Netherlands or in one of the other seven European countries where HZPC is producing seed potatoes. 

When HZPC Sverige AB was established in 2007, the expectation was that the Swedish seed potato market would change rapidly - moving from a traditional market with traditional varieties to a modern market with a fully integrated supply chain. In such a modern market the contribution of HZPC potato varieties is more valuable. However, the change in the Swedish market and the acceptance of new varieties is progressing slowly. In the foreseeable future, the profitability of a participation in a local presence is therefore insufficient. 

The HZPC varieties will continue to be available to current and future customers through local distributors, so growers can still benefit from the distinct properties of the potato varieties developed by HZPC. 

The overall impact of this change is minimal. The Swedish seed potato market is small (several thousand tonnes) compared to the total annual volume of 700.000 tonnes sold by HZPC. Furthermore it is expected that much of HZPC`s current market share will be maintained through distributors..