The Netherlands Organization of Consumer Potato Producers (POC) estimates the cost of growing one hectare of potatoes in the upcoming season at more than 10 euros, reports portal Nieuweoogst.nl.
Compared to 2022, the cost of growing potatoes in the country will increase again, by about 10 percent. When building the forecast, experts took into account the increase in costs for electricity, diesel fuel and plant protection products, but did not take into account the cost of irrigation, so the real cost of growing is even higher.
The full cost of the costs is calculated in April. POC assumes an average harvest of 47,5 tonnes per hectare, including storage losses. According to the organization, the real price of the crop with a 15% margin for the producer will be 252 euros per ton. Last year this figure was 229 euros per ton.
Director Jacco de Graaf says POC wants to raise awareness with manufacturers, many of whom are not always correct in their cost estimates, by using the POC calculation. POC experts calculated last year that the break-even point between wheat and potatoes was at a wheat price of 320 euros per ton. This is the price at which it is more profitable for a farmer to grow wheat than potatoes.
The new calculation shows that this tipping point is now at a wheat price of 300 euros per tonne. At the same time, POC notes that the cost of wheat production is also rising, but its cultivation requires fewer resources compared to potatoes.
According to POC, the 2023 cost estimate clearly shows that something needs to change in the potato production chain. The organization argues that a significant increase in contract prices is needed to sustain growth in potato production. Thus, in order to reach the level of 252 euros per ton, the price should rise by 70 euros compared to the current one.