As the agroportal.u to, The Netherlands, the government provides € 650 million to save farmers from complete bankruptcy and to pay off losses caused by the coronavirus pandemic. Of this amount, about € 50 million will be used to help potato growers.
The Netherlands is one of the world's leading producers of potatoes for fast food chains. Due to quarantine restrictions, most catering establishments are closed worldwide. Therefore, the Dutch potato entrepreneurs faced the problem of the inability to sell their products. To support agriculture, the Dutch government will allocate € 650 million, of which € 50 million will go to potato growers who have broken contracts because of the coronavirus pandemic, writes NOS.
The idea is that the first 30% of the loss of trade will be borne by the entrepreneurs themselves, and the remaining 70% of the damage will be “substantially compensated” by the state.
As previously reported by Reuters, the quarantine ban on the work of public catering establishments can last at least until June 1. Due to such restrictions, the potato market actually collapsed.
“This is a dramatic season. No one could have predicted such a turn of events, ”said farmer Dirk de Heer in North Holland.
For example, he says that he is now forced to sell his crop at a price of 1 cent / kg instead of the 18 cents / kg that he had previously hoped to obtain.
Market stagnation has a negative effect on potato processing companies such as Aviko. While the company manufactures products “in stock,” Dutch News previously reported.
For reference: potato production in the Netherlands is about 4 million tons per year, of which a quarter is exported.
НAt the moment, the Netherlands Agricultural and Horticultural Organization estimates the damage from an outbreak of coronavirus at 6 billion euros.