Potato trading house HZPC presents this week a forecast price of 33.10 euros per 100 kilos for seed potatoes from the 2021 harvest. This price is 2.30 euros higher than the final payment price of the previous year.
In a response, HZPC states that the seed potato market appears to be recovering from the consequences of the corona crisis and that the recovery is translating into an average higher sales price compared to last year. However, according to Martin Jansen Klomp, regional manager Benelux at HZPC, the market is more dynamic than ever.
‘Developments in North Africa and Asia, the recovery in Europe and import restrictions are all factors that influence the seed potato market. For us it means that we have to anticipate this as well as possible in order to be able to pay a good seed potato price in the future’, says Jansen Klomp.
Overseas Destinations
With regard to exports to overseas destinations, company reports that the market in North Africa is showing a strong recovery after the major decline last year. However, sales to Asia from the Netherlands were significantly lower due to lagging demand and payment restrictions. According to HZPC, the dynamics of these markets are taken into account as much as possible in the planning of the seed potato production.
Despite the recovery after the corona crisis, HZPC in Europe is still noticing some reluctance on the part of potato growers to plant acreage. In Southern Europe, this is a result of low consumer prices and a mediocre harvest last year. Potato growers in Northern Europe are hesitant because of the rising costs of cultivation and also because of the higher selling prices for alternative crops.
Deliveries uncertain in war zone
HZPC also points out that political choices affect the sales of the 2021 harvest. For example, hardly any basic seed potatoes are sent from the Netherlands to the United Kingdom as a result of Brexit. Sales from the Netherlands to Russia are also continuing to decline. The current developments surrounding the war in Ukraine make supplies to countries in this region very uncertain.
The forecast price for seed potatoes, which HZPC publishes every year in March, is the expected price for the average of all varieties and qualities grown in pools in the seed size classes S to A. The price per variety, size and quality is determined according to a agreed system between HZPC and growers. Fees for packaging and storage will be charged separately.
From the stock exchange period in May 2022, a new trading system for trading certificates from potato breeder HZPC will be introduced. This was decided yesterday by the members of the Association HZPC in the General Members Meeting. The trading system that HZPC used for more than twenty years is outdated, the company reports in a press release.
Certificate holders could buy or sell certificates twice a year and there was one trading moment per period. Via the new platform this remains twice a year, but the trading period is fourteen days and many trading moments are possible. The price can move during those fourteen days.
‘The new way of doing things ensures more active trading of certificates and greater transparency. The trading of certificates is placed with the Captin Trading Platform. From now on, the responsibility for trade and money flows rests with the Captin company and no longer with the HZPC Association’, HZPC writes in a press release.
visible to everyone
If one of HZPC’s certificate holders wants to buy or sell certificates for a certain price, this certificate holder will make this known and someone else can respond immediately. Upon response, a deal is established. After that, that certificate holder can immediately use the next transaction. This actively brings supply and demand together. Supply and demand is visible to everyone, as are the realized prices. Until now, the price value of a certificate could rise or fall by a maximum of 10 percent. This will be increased to 20 percent in the new way of doing things. As a result, a balance in the market is achieved more quickly.
Gerard Backx, CEO HZPC: “The new platform provides much more transparency. Our certificate holders are at the helm themselves and continuously see what each other is doing. As a result, there is more insight into supply and demand.”
1800 certificate holders
HZPC has issued 783,725 shares. These are 100 percent owned by the HZPC association. The association has issued 783,725 depositary receipts for shares. The certificates have been distributed among more than 1800 certificate holders. These are (former) growers, breeders and employees of company. They can buy or sell depositary receipts for shares.
