#PotatoPrices #AgricultureEconomics #CropManagement #SustainableFarming #Farmers #ContractPrices #PotatoIndustry
The Dutch Arable Farming Union has recently revealed its findings, indicating a pressing need for a 10% increase in contract prices for the 2024 potato harvest. The NAV Working Group on Consumption Potatoes (WCA) has meticulously calculated the expected cost prices, considering various factors impacting growers.
According to the WCA’s annual cost price calculations since 2010, the 2024 harvest cost is slightly higher than that of the previous season. Notably, labor, land costs, and crop protection have seen increases, while fertilizers, electricity, and fuel costs have decreased. The resulting expected cost price for clay soil stands at 18.8 cents/kg (field) and 24.2 cents/kg (shed). For sandy soil, it’s 15.5 cents/kg (field) and 20.2 cents/kg (shed).
A 15% risk premium, essential to compensate for the grower’s risk in achieving the desired yield, brings the prices to 21.6 cents/kg (clay, field), 27.8 cents/kg (clay, shed), 17.8 cents/kg (sand, field), and 23.3 cents/kg (sand, shed). This premium becomes increasingly vital in the face of more extreme weather conditions and the disappearance of crop protection products.
The Producers’ Organization for Consumption Potatoes, recognizing this challenge, has developed a Contract Tool to compare contract prices from different buyers. The tool reveals that, for the 2023 harvest, the average contract price was 18.5 cents/kg (end of September) and 24.5 cents/kg (end of March). As a result, the urgent call is for a 10% increase in contract prices for the 2024 harvest to ensure cost-covering cultivation and the future resilience of potato growers.
The data indicates a critical juncture for potato growers, necessitating a proactive response to address the rising costs and uncertainties in the industry. A 10% increase in contract prices emerges as a strategic move to sustain the vitality of potato cultivation. Growers, industry stakeholders, and policymakers must collaborate to navigate these challenges and secure the future of potato farming.
