Potatoes from German production were sold in good amounts during the last weeks. Despite the good sales, the producers are unhappy with the prices. The German potato trading association (Deutscher Kartoffelhandeslverband, DKHV) is representing the interests of German potato corporations nationally and internationally. FreshPlaza talked with Dieter Tepel, president of the DKHV, about the current situation on the German potato market, the image of the potato and about the influence of the minimum wage on the branch.The prices of potatoes have almost halved in contrast to the last year. What are the consequences for the potato industry?
Last year we had a high priced year for potatoes. Due to a very good harvest in 2014 in all European countries we have enough potatoes of good quality for the consumers. Compared to the previous year, the consumer prices are mainly significantly lower. The flip side is that the producer prices are lower. Rising costs cannot be covered but if the acreage in 2015 will decrease due to this situation I can’t say. Basically the potato cultivation is challenging and a job for a professional.
What about the German stocks?
During the recent years, the German potato companies have invested a lot in cold storage. Due to this, a very good quality is available until the late spring. Currently we can say that the potato supply is secured. The customers have a high expectation on the appearance. So we have to pack and sell the best quality.
Other European countries have, due to the Russian crisis and the mild temperatures, also large potato stocks. What about the competition on the German market?
The consumers are increasingly paying attention on the regional origin of their food. So the demand for regional products is rising steadily. As a product, the potato is completely meeting these requirements. The food retail has seen that demand and is now ordering German products over a long time and very intensively. During the start of the early potato season we expect many imports into Germany. But the amount of imported potatoes depends on the other export nations. Of course, some commodity flows have changed because of the Russian import stop for EU products. The time will show what impact this may have on the early potato season.
The DKHV has started the consumer campaign “Die Kartoffel. Voll lecker.”. If you had to draw a conclusion now, what would you say?
The campaign is running since 2011. The logo is already a common sign. Everyone who wants to start a campaign has to be very patient. With our Website, the related Facebook page, regular press releases and trade shows like the “Grüne Woche” we have achieved already a lot. Compared to previous years, the potato is now more on focus than in the past. Especially in the mainstream press and the trade press for the catering sector. For sure we have to intensify our activities. We want to reach our young consumers so that they increase their potato consume. And we also want to reduce prejudices. The potato is a local product, tasty, healthy and secure. It belongs on the table. Our campaign wants to inform about that but nothing is so good that it cannot be made better.
Are there other marketing concepts that are planned for the future?
The Potato Marketing GmbH has been founded in 2014. In the future they will implement many marketing activities. We will continue with funny and interesting, comprehensive and varied in all media about the specific qualities and advantages of the potato.
Since 01. January 2015, the legal minimum wage is implemented in Germany. Regarding to it, how is the mood in the potato sector?
First of all: Everyone who works, should be able to live from his salary. In the view of that, the minimum wage is indisputable. However, as with many other laws a "bureaucratic monster" has emerged. The missing implementing regulations are making the dealing with the minimum wage not easier. Due to that we appeal to the legislator to rectify urgently! Companies need to have legal certainty when signing a contract with a third party and should not be a subject of an exuberant burden of proof.
Dieter Tepel
Deutscher Kartoffelhandelsverband e.V. (DKHV)
Schumannstr. 5, 10117 Berlin
Tel. +49 (0)30 664068-51
info@dkhv.org
www.dkhv.org