Low potato yields result in a excellent financial performance for seed potato supplier HZPC

Research and Development Center of HZPC Holland in the Netherlands

March 10, 2019

Seed Potato Company HZPC Holland has issued an expected price for harvest 2018 and estimates to pay its Dutch seed potato farmers a record price of € 41,- per 100 kilo

Until now, harvest 2007 resulted in the highest seed potato price het jaar met de hoogste uitbetalingsprijs of € 36,50 per 100 kilo.

HZPC expected price (NL: prognose prijs)

The expected HZPC-expected price is an average across alll varieties and all qualities in the classes S to A grown in the HZPC pool; excluding VAT; and before payment of the license costs by the grower

The p[rice does not include the payments for storage and packaging.

The price by variety, class, size and quality is established by the system agreed to by HZPC and its growers.

Lilian Escalon, director Europa:

“The low supply of seed potatoes and a decent demand, enables us to increase the prices in a number of markets quite significantly this season.”

“With the potato processing industry long term contracts are in place, mostly with a set price level. Furthermore, the part of the overall harvest that is sols as seed is higher than ever.”

“Due to our pricing strategy and the high level of the crop that is sold as seed, the HZPC expected seed potato price is € 41,- per 100 kilo. For the average seed potato grower, this price results in the second highest financial revenue by hectare in the history of HZPC.”

“Only the harvest in 2010 resulted in a 2% higher financial revenue by hectare based on the current HZPC expected prices.”

“The drought of 2018 had a major impact on the yield in the seed potato production. We are well aware this results in large differences between regions and between individual operations.”

Kilo’s

The summer of 2018 resulted in a harvest with a particular low total weight.

On average for all HZPC acreage in the Netherlands, the yield was 18% below the previous year as well as the multi-year average yield.

This is the result of the drought during the growing season. The average yield is 33.5 ton per hectare including oversized tubers. Yields differ strongly dependent on region and individual lots.

Euro’s

More than usual, the larger size tubers are also sold as seed potatoes this year. HZPC Holland B.V. pays its growers € 23,- per 100 kilogram for these sizes.

The seed potato sizes are as usual paid for by a single pool system for all varieties. The price paid for individual varieties is not directly linked to the selling price of that variety.

But the price is related to the degree of difficulty in the seed potato production for that specific variety and to the average yield of that variety in comparison to other varieties.

Lilian Escalon:

“With this high HZPC expected price we pay for several varieties more than the actual price received for the variety. This is especially true for varieties destined for the potato processing industry.”

“It is a consequence of the payment system we decided on. But it guarantees that even after years like this, the acreage of seed potatoes for processing destinations is maintained.”