TRADE AND MARKETING Quality differences among growers will determine sales opportunities Seed potato growers of Noord-Holland Noord exchange knowledge in a business group. good seed potato land for 500 to 700 euros.’ The trading companies, too, do not earn fortunes with their activities. ‘The margins are low. Traders in Germany and France earn more per kilogram of seed potatoes. There is competition within the Netherlands: who pays the most to the potato grower. As a result, the Dutch grower is paid more than his colleagues abroad. If payment to the grower drops slightly, the trading company’s now has will get lost. The quality found in European countries will all be the same.’ The current differences among countries will change into differences among trading companies, is what Backx expects will happen. Trading companies can already set supplementary requirements now. ‘This development will continue. They will each choose their own market position.’ Quality of the grower The grower must also take up a position. ‘The quality he can produce will later be a strong factor in determining to which merchants he can sell his products.’ There are already differences among growers now. ‘As a result of past experience, some exporting countries refuse to buy produce from certain grower varieties. The lots can now be distinguished without any difficulty. These differences will soon be bigger. Soon means definitely in ten years’ time. But it may also be in five or seven years’ time.’ A disadvantage for the Dutch sector is that the quality advantage is still small. ‘The difference in quality that Dutch growers and those qualitatively-higher growers in other countries produce is becoming smaller. The best French grower and the best Dutch grower, there is hardly any difference. Other countries are working hard to improve their quality.’ The natural, qualitative advantage of the geographical position of the Netherlands is limited, says the HZPC director. Earning capacity The Dutch growers and trading companies hardly earn anything extra for that slightly better quality. The cost price of Dutch growers is higher than those of their fellow-growers abroad. Machinery, crop protection agents and labour cost are the same for growers elsewhere. The price of land makes the difference. ‘Prices are a reflection of what you think you can earn with that land. Growers keep land prices high with their own self-created success. This is fine if all goes well in the sector. It is only when things go in the wrong direction that a grower can start feeling the pinch. In France, you can lease margin will increase. That makes life a lot easier for the trading company,’ says Backx. But a further effect of higher payment is that the Dutch grower wants to invest in his product and in its quality. ‘We have been able to provide better quality for years, because growers invested in storage and machinery.’ Export-oriented Against these competitive disadvantages, there are also a number of advantages. The trading companies are export-oriented. ‘It’s almost only the Dutch companies that have really made export their core business. This is because the Netherlands is small. If your product sells a few hundred kilometres away, then you have already crossed the border. French, German and British firms remained home-oriented for much longer. They started to focus on export much later.’ Moreover, the Dutch grower is flexible. Because the trading companies are so clearly focused on export, the growers grade their produce for many different countries. ‘The Dutch grower has learned to respond to what is asked of him. One week, a grower grades for Morocco, another for Russia. Try to explain that to a German or a French grower.’ The Dutch infrastructure also remains a strong point. French and German potatoes also reach their boats fairly quickly, according to Backx, but no port operates as efficiently as the Dutch. The infrastructure also includes institutions such as the Food and Consumer Product Safety Authority (VWA), formerly the Plant Protection Service (PD) and the Dutch General Inspection Service for Agricultural Seed and Seed Potatoes (NAK). ‘We may all grumble at them at times because we all find the rules a bit much occasionally, but they work well. The NAK, for example, responded well to the situation this autumn and ensured that, despite the late harvest, little time was lost with the export.’ ● Harma Drenth Potato World 2011 • number 1 5 Pagina 4
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