P ot a t o w o r l d CONTENT: Journal for the Potato sector • number 4 • 2019 Searching for root properties for more robust potato varieties > 11 PW-Actua 16 The E of Environment 19 NPPL participant Martin de Meijer: ’I didn’t want to be faced with all kinds of things that don’t work’ page 5 36 Successful storage begins in the field 41 The World of PotatoResearch 42 PotatoWorld dish 42 PW Agenda PotatoEurope 2019: mostly dry weather, lots of interest and plenty of novelties > page 25 Cost-driven thinking Since the Second World War, arable farmers in Europe have focused on producing the cheapest possible food. Thanks to the optimal cooperation between research, education and information, potato yields have increased and the cost price has fallen. A consequence of cost price leadership is that, as a potato grower, you are not very strong in the negotiations with your customer. Many potato processors base their grower contract price on their own required volume and not on grower cost. Due to the current climate changes, crop risks in the sector are on the increase. Last year, a large part of Europe had the driest and hottest summer ever, at least since the meteorological institutes have been keeping records. This caused tension in the market due to an imminent shortage of potatoes. Due to the expansion of the acreage this year and the generally reasonable to good yields, it is expected that there will be sufficient potatoes in large parts of Europe. The changing climate and the major changes in cultivation and storage that are in the pipeline have a direct impact on the European potato market. Where possible, growers are investing in costly irrigation. This reduces the cultivation risk, but increases the cost. In addition, from the next crop year onwards, it will be forbidden to kill haulm with Reglone and store potatoes with CIPC. These are developments where businesses are still doing a lot of research in order to find solutions. Whether cost-driven thinking is still appropriate in the coming period is something you can also question. According to Professor Hendrikse of the Erasmus University, potato contracts have a stabilizing effect on the market nowadays. He wonders whether cooperatives, or bundling of sales, can break this trend. Given an important market wisdom that it’s now a good time for the buyer, it seems that it’s currently the volatility in the market that mainly affects the mood. This means that there is and will always be room in Europe for non-contracted potatoes, but the price will only reach a cost-plus level in special years, or periods of a year. ● Jaap Delleman Potato World 2019 • number 4 3 Pagina 2
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