Potato cooperative Agrico presents financial results to its members

Potato Cooperative Agrico held its central members’ meeting last week. At this meeting the 2014/2015 annual report was discussed.

The 2014/2015 financial year was a challenging one, in which the widely differing circumstances created an individual dynamic in each market.

The over-production of table potatoes in Europe resulted in prices that were extremely poor during the entire season. This situation had a knock-on effect on the purchasing power of growers of table potatoes, and therefore on the volumes of seed potatoes purchased in Europe.

However, outside Europe, sales of seed potatoes increased. Agrico's turnover decreased by 12% to 236 million euros.

The cooperative made the maximum payment to its members, so the net result was limited to 511,000 euros.

Besides the formal agenda, the central general members’ meeting also had an informal programme.

The highlight was a presentation by former Dutch Prime Minister, Jan Peter Balkenende.

Under the theme ‘From words to deeds’, Mr Balkenende spoke based on his wide international expertise and experience in the fields of strategy, governance and sustainability. He indicated that the role played by the businesses is becoming increasingly significant in achieving international sustainable development goals. He praised Agrico for the way in which the company has incorporated sustainability into its strategic policy. The former Prime Minister's lecture and interaction with the audience were highly valued.

Following the central members’ meeting, the members' council formally adopted the annual figures on Tuesday, December 15th.

Based on the prospects for seed potatoes for the present season, Agrico foresees good foreign sales. The total yield of table potatoes in Europe is lower than last year. This has made the seed potato market a lot less hostile, certainly in South and East Europe. We therefore expect a slightly higher than average demand from these regions.

After the final yields were announced, market prices for table potatoes in North West Europe show a slight downward trend. Despite this, we expect an average season regrading turnover. The french fries industry is clearly a growth market for seed potatoes.

The table potato market in the Netherlands is lower than expected in August. The main reasons were disappointing export figures and a better than expected yield. Exports of table potatoes will have to look ahead to the spring to be able to sell all the potatoes. Yields of organic potatoes are very good thanks to late phytophthora.

A large part of the produced volume will have to be exported. Sufficient opportunities appear to exist.