McCain Foods agrees to pay 20 percent more to French potato growers

Potato Processor McCain Foods has reached an agreement with the French group of potato producers for industry (Groupement d'agriculteurs producteurs de pommes de terre pour l'industrie, GAPPI) on the new contractual bases.

According to the company, these will mean an average increase in the price paid to the farmer of 20% in the 2022/23 campaign.

The company will act along 3 lines:
 

• It is updating the prices of the multi-year contracts to take into account the increase in input costs. Ten years ago, McCain Foods introduced multi-year (3-year) contracts.
• It will also encourage farmer loyalty. McCain Foods works with 800 farmers in France, of which more than 80% have worked with the company for more than 10 years and 70% of the farmers have worked exclusively with McCain. The company plans to give an additional premium per ton, in addition to updating prices.
• Likewise, the company will support regenerative agriculture, offering a contract dedicated to this type of agriculture. It will be voluntary, will last longer than conventional multi-year contracts (6 years versus 3 years) and will have a revaluation premium.

Farmers will have to carry out specific practices (use of vegetative cover, prolonged crop rotation, use of a decision support tool, etc.).