Switzerland: Introduction of potato contacts

The Swiss potato sector is hitting the emergency brake: This year people want to start contracts. The reason for this is the surpluses of the last few years: 100,000 tonnes of potatoes of the harvest in 2011 were still in storage at the end of February. That's around 30% more than the average of the last five years, reported Ernst König, secretary of the branch association Swisspatat. In total more than 500,000 tonnes of potatoes was harvested in 2011.

To support the potato prices, 60,000 tonnes of this was already taken off the market and processed into animal feed. The growers received a compensation between 11 and 15 Swiss francs per 100 kg for their surplus, which came from a fund that was gathered by producers, the trade and the industry.

After surplus was produced in 2009 and 2011, people wanted the production to fit in with the demand better. This is made possible by the start of so-called contract production, a way of producing which is already common in, for instance industrial processing. In this system buyers determine what amount they want to buy at the beginning of the year against the terms set by the branch.