Demand for organic products is increasing, although it is somewhat disappointing as regards potatoes. A few years ago, Warnez also specialised in organic, and in 2016 the company started a separate department for organic potatoes. Peter van Steenkiste from Warnez Potatoes indicates that they follow the market, and definitely see opportunities for both organic and low-residue cultivation. “This trend will also be influenced by European policy measures and regional politics in Belgium. For example, the Walloon Minister is very ambitious regarding organic cultivation.”
Millennials are in favour of organic
Organic is increasing, and therefore the market share of Warnez is also increasing. “In 2016 we conquered a significant percentage of market share on the Belgian market. Organic in general is growing, but potatoes in particular have not shown much of an increase for years already, and there is a fairly continuous penetration. It is dependent on demand of certain retail chains who either choose to get started with organic or were already working with organic, and how much shelf space they wish to dedicate to it.” Yet Van Steenkiste is positive. “Organic is still ‘in,’ the organic range is still expanding with increased spending. The degree of penetration for potatoes is still not very high, and could increase further. For now, well-off families and older singles are interested in organic. Millennials are in favour of organic and still offer perspective. This generation’s spending power is currently not very much, but I definitely see potential in the long term.”
Higher prices
There is, of course, a price difference between organic and conventional as well. “Organic potatoes are, on average, 1.6 times more expensive for consumers, although the potatoes are often three times more expensive upon acquisition. More resistant strains, which have sufficiently high yields, offer potential to make this gap even smaller in future. Last year was disastrous for organic, resulting in a limited supply and very expensive potatoes.”
Production through cooperation
Van Steenkiste indicates that their contracted organic area through cooperative STG currently only amounts to about 15 hectares, which does not meet demand, but which Warnez is in control of to ensure a quality product. But for organic it is of the utmost importance to work in broad regions, to spread the risks. A good quality of the organic potatoes must prevail, and we therefore must not expect increasing consumption. The total area of organic potatoes in Belgium is not very large to begin with, and is estimated to be 450 hectares.
Frozen industry especially
The share of organic potatoes for Warnez is about 2.5 per cent. “This is relatively similar to the entire market share of organic potatoes in Belgium, which is about 3.5 per cent. That is mostly unprocessed product. Additionally, a part of the peeled organic potatoes is processed by Pomfresh.” Almost everything of the product is used. “The frozen industry is also a demanding party for the organic sidelines, resulting in nearly everything having a food destination.” As regards processed organic, the largest volume of organic potatoes is in the frozen industry, which is king of the world. “Freshly processed products are supplied to institutional branches, such as government catering and school meals. In the long term, it is not yet quite clear how processed ready-meals fit into the organic story. Only time will be able to tell.” For more information:
Warnez Potatoes
Marialoopsesteenweg 2L
B-8700 – Tielt - Belgium
T: +32 051 400812
info@warnezpotatoes.be
www.warnezpotatoes.be