HZPC publishes forecasted price seed potatoes crop 2013

HZPC Holland B.V., world leader in potato breeding, expects to pay its seed potato growers at least 33 euro per 100 kg for crop 2013.

This forecasted price is 10% above the expected 30 euro that HZPC expressed to its growers at the beginning of December 2013. The present forecasted growers price is based on the sales already settled as well as on the expected sales.

The final price will be announced at the end of June this year. Meanwhile the price for big sizes has been set at 15 euro per 100 kilogram with the exception of 17 euro above for certain varieties.
 

The financial return for the grower is the combination of the price and the yield of seed potatoes.
 

• The average yield per hectare in 2013 was somewhat lower than in the previous year 2012, somewhat higher than in 2011 and comparable with the five-year average.
• The yield of the big sizes in 2013 was higher than in the previous year 2012, comparable with 2011 and somewhat higher than the five-year average.

HZPC-CEO Gerard Backx states that "HZPC seed potato growers may expect a very good financial return even with the higher yield of the big sizes. This is due to the excellent (forecasted) prices that we are announcing today and a good volume of the crop on the five year average".

Results per region and factors affecting the results

The forecasted price is driven by the present demand for seed potatoes of the year 2013/2014 and this demand was and is good.
 

• In Europe the demand is driven by a good price for ware potatoes. That is why growers buy more seed potatoes and keep back less of their own potatoes for planting.
• The demand in North Africa was high but somewhat lower than last year 2012-2013 with a high demand especially in Algeria.
• The demand in the Middle East was higher this year than in previous years. HZPC could supply the demand very well, despite the political unrest in that area.

However it is still uncertain if delivery of seed potatoes to Russia will be possible. HZPC realises about 2% of its turnover in Russia. In addition, it is true that the ware potato market started very strong this year but since January the prices have dropped. This may have consequences for the sales of seed potatoes later this season.

Profit expectations

The relative good growers price and the good sales would normally imply that HZPC Holland will also realise a good margin over the year 2013/2014. The cost development is according to plan. Most of the subsidiaries of HZPC are showing the expected results, whereby the expected cumulative net result of 2013/2014 will be significantly above the estimated 5 million euro.