Not the lowest price but one that is ‘appropriate’ CULT IVAT ION AND T ECHNOLOGY ‘Growers were surprised to see that the difference in income between the potato seed selectors and the bulk growers is so much’, says Schipper. ‘Seed selectors therefore have a few hidden advantages. They do indeed, have fewer quality problems in their A and E crops. Moreover, they have easier access to new and successful varieties. That means, however, that strain development must suit you. The risk is also bigger, of course. Bulk growers have different considerations. It may be easier for them to earn money with other crops, or by work outside farming. ‘Treatment with Talent costs a lot of money, but not if it pays back in yield and quality. will arrive when we have to employ permanent staff and will have to change over from two-row to four-row lifting.’ Other companies that cooperate show similar results. What strikes one most is that the profit is not found in spreading out mechanisation costs over a greater surface area. Harm Jan Schipper, agricultural advisor at AcconAvm: ‘The mechanisation costs explain only half the difference. The other 125 euros come from saving on external labour and a more efficient farm management.’ He doesn’t think that mechanisation costs tell a great deal about the operating results. Growers with high mechanisation costs usually also produce higher yields. ‘Having extra costs can be worthwhile, certainly in a year in which money is being earned. You had better invest it than give it to the tax man. Moreover, a large capacity reduces the risks during growth and lifting, and the grower can utilise the growing days better’, says Schipper. Potato seed selector wins 1,800 euros The biggest differences in directly attributable costs were found in planting stock: does the grower develop his own basic stock or does he buy it? Where for fertilisation and plant protection chemicals it is about tens of euros, the differences among comparable businesses went up to a 100 percent. This is not difficult to explain, as costs go up quickly when lots are rejected. For many potato seed selectors the quality of the planting stock is an important reason to keep the multiplication from mini tuber to strains in their own hands. And they put up with the extra time this costs. This doesn’t do them any harm, as the comparison shows. Potato seed selectors are realising an average of 1,800 euros more gross yield per hectare of seed potatoes than bulk growers who buy their planting stock. Apart from the delivered product, their own planting stock is also valued. The seed selector has 23 hours’ extra work per hectare of potatoes which, if 20 euros per hour is paid, boils down to a cost of 450 euros. Choosing a cost price Because of the differences in farm structure, it is possible to give an unequivocal answer to the question of what the minimum price for a potato should be. On average, Schipper’s calculation comes to around the 25 eurocents a kilo which the LEI suggested. But there are also peaks between 10 and 30 eurocents a kilo. ‘The former can be explained by an exceptionallyhigh yield combined with the sale for the consumption market. The latter was a disappointing yield plus a number of rejections. This grower also suffered from high mechanisation costs. The ‘critical seed potato yield’ indicates the price that covers all farm costs. What this shows is how dependent you are on potatoes and how you structure your farm. That is the farmer’s own decision. He must aim for an appropriate cost price which is not, by definition, the lowest.’ “Potato seed selectors have indeed fewer quality problems in their A and E crops.” What seed potato grower Vermue remembers very clearly from the comparison of farms is that the yield and the quality are decisive factors. ‘If you can increase those by incurring extra costs, you are all right. We have invested a great deal in new machinery in the past few years. This was partly for fiscal reasons, but also to keep up with technology. Seed potatoes are an expensive and risky crop, which definitely needs a highly professional approach.’ He won’t change a great deal on his own farm on the basis of the business comparison. He knows exactly what his cost price is going to be. What he would like to know, however, is the financial consequences of the various storage strategies. The study groups have no clear picture of that farm management aspect, as yet. Vermue: ‘Many growers are busy with the question of how the use of Talent and the turning over of the seed compare. We are also testing that. Treating one hectare of potatoes with Talent costs 250 euros extra per hectare. That is a lot of money, but not if it pays back in yield and quality.’ ● Egbert Jonkheer Potato World 2009 • number 3 13 Pagina 12
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