The payout price for HZPC Holland seed potato growers for the 2020 harvest is EUR 30.80 per 100 kilos. That is slightly above the forecast price quoted by the potato breeder and seed potato trader with headquarters in Joure in the spring. Company says it is ‘very satisfied, given the eventful season and the challenges the potato breeder is facing due to the corona crisis’.
HZPC’s seed potatoes are doing well in the European fresh market, the group notes. The corona crisis of the past year had little influence on this. This is in contrast to other segments, where Company ‘still faces challenges’.
For example, import quotas were issued in certain countries, which meant that customers could import less; a measure that countries are taking to limit the outflow of hard currency, the group notes in a press release with the figures.
French fries industry
The influence of the corona crisis is most noticeable in the European chips industry, says HZPC: ‘Sales to this segment turned out much lower than we had planned when the production was started at the beginning of 2020’.
“European French fries industry contracted a smaller area“
The reason is that the European chips industry has contracted a smaller area for the coming consumption harvest 2021, resulting in a lower purchase of seed potatoes in the spring of 2021.’
Disappointing
In addition, the company reports that HZPC has been able to deliver even less to the French fries industry since the spring of 2021 than was expected at the time. Martin Jansen Klomp, regional manager Benelux: ‘This decrease was a disappointment for everyone. That is why we are now also pleased that we have achieved a payout price of EUR 30.80 despite these challenges.’
The profit of HZPC will be nil as a result of the corona crisis. Company calls the fact that despite the challenges, growers still get a good price for their seed potatoes supplied, ‘good news, because without growers there is no Company’.
Certificates
To give the transfer of certificates from inactive to active growers an extra incentive, HZPC offers its growers a Connecting Growers program. Company buys its own certificates and then donates them to its active growers.
The vast majority of HZPC’s growers in the European Union, more than 70 percent, are already participating in the program. Company has purchased the certificates for the 2021 harvest. In the short term, HZPC will start transferring certificates to its growers.
