Calculating turnover in packages rather than in kilograms

“It was a season to quickly forget,” says Klaas Greydanus about the past potato year. With this statement he closes the season and starts to focus on next season. The new harvest of potatoes from Malta and Israel, and the first Dutch harvest are already ready in the warehouse of Aardappelgroothandel Greydanus in Heerenveen, the Netherlands. The sensible Frisian sees the market changing. This requires adjustments, but also offers opportunities.

“We’re seeing a tendency towards smaller packaging of about one kilogram of potatoes,” Klaas says. The bags of five kilograms appear to be gradually disappearing from the market. To follow along with this trend, the family company invested in a new packing machine that can also fill smaller packaging. “Consumers have different diets nowadays. Dutch fare is no longer eaten every day,” he explains. When potatoes are served nowadays, it shouldn’t take too long. The convenience segment, with peeled potatoes or potatoes that can be eaten skin and all, for instance, is a clear growth market.

This change also requires a different outlook regarding turnover. While in the past turnover was calculated in kilos, it’s now becoming more important to look at the number of packages. “Nationally, we’re seeing fewer potatoes being sold,” Klaas says. “This is also because we sell more small packaging, resulting in fewer kilos in total. We have to start calculating differently.”

However, he does make a comment regarding the shift on the market. The small packaging is a trend, but in Frisian supermarkets, the larger packaging aren’t disappearing everywhere. Local supermarkets still have plenty of demand for bales of ten kilos of potatoes, for example. That is also reflected in the warehouse, where the bags of five kilos of potatoes are the majority. “You have to look at it considering the locals, and franchisers should be given enough freedom to respond to this,” Klaas continues.

Besides bulk potatoes, Greydanus also has some special varieties in their range. One example is the old Frisian Wâldgieltsje (Woudgeeltje) variety. “It’s an old variety that we added new zest to,” Klaas explains. “Supermarkets enjoy it when there’s a bit of commotion in potatoes, although the amount of space is under pressure in many shops.” Supermarket chains don’t always see an added value in a broad potato range, although Klaas has also noticed local differences in this field.

It isn’t the first time the Greydanus family has seen the market changing and responding to that. Klaas’ grandfather started peddling potatoes in 1933. In the 1960s, Klaas’ father took over the company. In those years, supermarkets were on the rise, and the company expanded by supplying to this new clientele. Besides, they invested in a packing machine, and a washing machine followed ten years after that. The company could now also meet demand from Germany. “In the 70s and 80s, Germany was a good export market,” Klaas explains. “Nowadays, the Germans grow plenty of potatoes themselves, so that market has declined.”

In the mid 1980s, a major retailer became a customer of Greydanus. The chain is still a major customer of the Frisian potato trader. “Besides, we supply to local entrepreneurs and franchisees of all major supermarkets,” Klaas continues. The company’s focus is on the northern provinces of the Netherlands, although the company isn’t afraid of supplying potatoes elsewhere in the country using their own fleet of cars.

“The potatoes are picked up and delivered by our own drivers,” Klaas says. The shortages of drivers plaguing the sector are also felt in Friesland. “It’s difficult to find good drivers, and that’s why we take good care of ours.” To take care of shortages during the summer months, old-timers return to the company. “These drivers had to quit when they retired. Now they come back to help out.” Transport is a considerable debit item, particularly when the lorries aren’t full when driving. That’s why Greydanus works with other companies from Heerenveen to make sure the lorries transport as little air as possible.

Transport is also becoming a more important topic on the market, and particularly as part of sustainability. “There’s more emphasis on how many kilometres the potatoes covered, and how many pesticides were used,” Klaas explains. Many of the growers he works with also pay attention to this. For example, many potato fields are surrounded by strips of wildflowers for insects.

“This season is still a transitional season, but the potatoes have to be Planetproof as of next year. Growers are very serious about this, they’re very involved.” Late last year, Greydanus organised an information day in cooperation with a major supermarket chain in the famous Thialf Stadium. Supermarkets wanted to implement the new requirements at the start of this year, but they announced this too late regarding productions. “Growers have to draw up their plans for production around New Year’s, so there wouldn’t have been enough volume for supermarkets.” The additional requirements will now be implemented next year. A feasible deadline, according to Klaas. “I don’t expect any major problems. We’re Skal-certified as well, so we’re familiar with additional requirements,” he says.

Sustainability is very important to the company. Years ago, a wind turbine was installed. Nowadays, they have solar panels to generate energy. Besides, they have a water treatment plant in their warehouse. This cleans the washing water so that about 98 per cent can be reused. The residual flows of this machine, sand and mud, are brought to a cattle farm nearby. “It’s not too bad here in Friesland, but water is becoming increasingly scarce globally,” Klaas explains their decision to get this machine.

Greydanus

Klaas Greydanus