Agrico sees volume growth in sales of seed potatoes

Last month, potato cooperative Agrico announced to its members an average indication price for seed potatoes of € 26.00 per 100 kg in 2017. The price is for all sizes and classes and is higher than at the beginning of the season was expected.

For the harvest of 2017, the acreage of Agrico's seed pool was 13,050 hectares. This meant an expansion of 3% compared to the harvest in 2016. Although the realized kilogram yield per hectare was higher by about 39.5 tonnes per hectare than in the harvest of 2016, the percentage of larger sized seed potatoes was remarkably high. On balance, the quantity to be sold in the seed potato size was almost the same as the 2016 harvest.

At the beginning of the season, at the transition from the old to the new harvest, it became clear that the supply of ware potatoes within the European Union exceeded demand with a low price level as a result. This had an impact on the sales of seed potatoes in this region. In addition, the wet harvest conditions created a huge challenge to be able to ship the seed potatoes for the early destinations on time. Eventually all requested seedlings could be delivered.

The big exception in Northwest Europe was the demand for seed potatoes from the French fries industry. This sector is expanding further and Agrico's share in this is considerable. Supply and demand in the overseas markets were well balanced. Despite the difficult political and financial situation, a larger quantity was sold in this market than in the harvest of 2016.

The European consumer market was very poor from the start. This caused a difficult sale of that part of the seed crop that had to be sold as consumption. Agrico presents seed potatoes larger than 28 mm on price and therefore this part of the harvest is also part of the payout price.

In the end, Agrico has been able to expand its market share in all markets.

The indication price of € 26.00 per 100 kg applies to all delivered tons and concerns class S up to and including A, including the average premium, separate, ex-farm, delivered in the fall and excluding all fees and VAT. The mentioned price includes breeders license. For monopoly varieties an average of € 1.85 per 100 kg will be deducted from license.

Managing Director Jan van Hoogen looks back on the sales season with satisfaction.

Jan van Hoogen:

"After a hesitant start to the season, we have succeeded in serving all markets well.”

“This allows us to present our seed potato growers with a nice indication price."

During the product group meetings in June and July, Agrico will announce the final payout prices and explain it to its members.