PW CONFERENCE all sides in recent years and financing by banks has increased at the same time. This development has increased the financial risk for both the growers and the banks enormously. And now the sector has run into stormy weather, we are all experiencing the negative consequences. ARE POWER BLOCS HELPFUL? NAO chairman Kees van Arendonk opened the panel discussion with the question of how to prevent potato cultivation disappearing from the Netherlands. ‘If I understand this correctly, this is a political call for financial support’, was the answer of panel member Ruud Huirne. If granted, it is because of two considerations. When companies get into the danger zone through no fault of their own, financial support is justified. The other extreme is that, when the sector prices itself out of the market, the government will vote against a financial injection. If the sector does get financial support, it will always be a temporary measure. Doubts from one cooperative One question from the Audience was to what degree does poor organisation of the sector play a role in the current price crisis? Would it not be better for all of us if there was more collaboration within one cooperative, as is done in dairy farming? Huirne expresses doubts about that option when he answers the question. A cooperative could make a fist, but is that what they are doing? The milk cooperatives have been unable, or unwilling to do anything about the bad price situation in dairy farming over the past few months. Van Arendonk added to this that he also thought that a Campina [Royal FrieslandCampina] in the potato world is no more than a utopian dream. ‘Big power blocs will never make it, I think.’ One questioner from the Audience observed a serious dilemma in the potato sector at the moment. Growth has been stimulated from Farmer gone, money gone ‘Have banks not gone too far with their financing and is financing sometimes not taking too long?’ was a question from the Audience. ‘I think that you have painted quite a correct picture for this country’, responded Frank Driedijk who had meanwhile replaced ABN AMRO Joop Wijn who had already left the conference. ‘As banks, we have not correctly assessed the risks, nor have we talked things through properly with the entrepreneurs. Was it so clever after all to grant maximum-value mortgages? It is the bank’s duty of care to point out any possible risk to the entrepreneurs. This has not been sufficiently done. If the crisis lingers on, we will certainly have drop-outs, but it is too early to speculate on that. You just mentioned the subject of whether or not to continue financing when the grower is experiencing difficulties. It is still the case that, if the bank has lost the farmer, the bank will also have lost the money. So banks will keep financing for as long as possible.’ ated by that sector itself. Scale expansion for retail and manufacturing is inevitable’, is the financial expert’s opinion, adding to the well-meant appeal: ‘We must try to stop this battle. The entire chain suffers. This must be the basis for all those involved. Competition based only on efficiency and cost saving will lead to degradation.’ More distinction In addition, Wijn has more tasks for the sector in store. ‘Go for distinction; let products not all be so similar. I’m looking at the dairy sector. If I look there, I think that your sector can serve as an example. A little bit more innovation and creativity would not go amiss’, says Wijn with a tinge of reserve. ‘And don’t do it alone’, he continues. ‘Going it alone is like sowing on rocks. When retailers or industries start introducing product innovations on their own, it will lead to nothing. Only if you develop things together, with the entire chain, can it grow into something permanent.’ In a reaction, Kees van Arendonk, chairman of the Dutch Potato Organisation (NAO), said a little later that the sector could definitely agree to such a call. Except that he believes there is definitely a significant obstacle, namely: that same economic crisis which this conference has as its theme. ‘The entrepreneurs in the sector currently don’t have a lot of financial headroom for innovations.’ Potato World 2010 • number 1 Pagina 10

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