In the Netherlands, the weak table potato market, fewer contracts, and disappointing exports are putting pressure on the seed potato market. Players like the Royal HZPC Group and Agrico, though, consider the situation primarily as a correction following unusually strong years. "It's significantly down from last year. But that was a record year," says HZPC's Peter Ton. That company expects a payout price of around €44/100kg; in 2025, that was €60+. "Historically speaking, that's still a solid price."
© HZPC - Agrico
Mark Zuidhof, director of Agrico, and Peter Ton, director of HZPC Group
Big difference in trading houses' prices
The market is not uniform, with trading house prices varying considerably. "It depends on your variety portfolio and sales markets," says Ton. The difference between open-pollinated and protected varieties is particularly significant. When the market slows, demand for open-pollinated varieties is the first to go. "That leaves little for the open market."
Sluggish ware potato market puts pressure on seed potato market
Seed potato demand follows ware potato market patterns. "Our customers grow table potatoes. Less demand there means less demand for seed potatoes." The long planning schedule (up to 18 months ahead) delayed the market reaction. "When seed potato prices rose, the consumer market had already slumped again," Ton explains. Agrico CEO, Mark Zuidhof, also sees this broad decline in demand.
Processing industry halting slows seed potato demand
The processing industry's final product sales were disappointing, so it cut back on contracts. "As a result, there's less demand for seed potatoes," says Mark. Noncontracted traders and growers are getting the worst of it. "Those growers cultivate at their own risk, which makes them cautious," says Ton.
Export demand fluctuates. Asia, the Middle East, and countries like Egypt are taking less, while, conversely, Algeria wants more. Geopolitics and logistics are factors. "Unrest in the Middle East and shipping problems are disrupting the market," Mark explains. Wet weather in Southern Europe is dampening demand, too.
There is no general surplus. "It varies by variety," Ton points out. Those for high-quality fries, such as Innovator, remain in demand, while others are harder to sell. The potato acreage should decrease over the next few years. "That's necessary after the strong growth." The market can shift quickly, though, in the event of, say, persistent dry weather.
'Correction, not crisis'
According to Ton, the current situation is exceptional, not systemic. "This is a correction, not a crisis. We've gone from sky-high to rock-bottom levels," he says. Although the short term is challenging, the long-term outlook is positive. "Potatoes will always be an essential food crop." Things like the weather, geopolitics, and the industry keep uncertainty high. "These are interesting times," Ton concludes. (JG)
For more information:
Agrico
Duit 15
8305 BB Emmeloord
Tel: +31 0527 639 911
[email protected]
www.agrico.nl
HZPC
Edisonweg 5
8501 XG Joure
+31 (0)513 48 98 88
[email protected]
www.hzpc.com
