Agrico Attains Growth in Seed Potato Acreage
By adding 75 new growers to its portfolio, Agrico increased its seed potato acreage by 3%. Also, Agrico Bioselect’s acreage increased from 652 hectares in 2022–2023 to over 1,000 hectares.
“As far as Agrico is concerned, this growth is not accidental,” according to a press release sent following the company’s central members’ meeting, which took place in ’t Voorhuys in Emmeloord, recently.
The takeovers of Zaaizaad-en Pootgoedtelersvereniging Anna Paulowna (ZAP) and The Potato Company (TPC) in Emmeloord more than made up for the loss of 6% of the seed potato acreage in 2023. Agrico also greatly increased its market power in both licensed and free varieties with these two takeovers.
“Further growth is urgently needed to strengthen our position on the Dutch market and to remain a partner of the Western Europe potato processing industry in particular. We have observed that the acreage in The Netherlands is quite close to the ceiling. This is why growth will mainly take place abroad during the coming years. In Denmark and Germany, where we carefully started this financial year, we want to grow from 0 to 1,000 hectares of seed potato cultivation within four years. Our ambition in France is to grow from 4,000 to 5,200 hectares during the coming five years,” Mark Zuidhof, Agrico CEO, said.
Agrico’s Consolidated Turnover for the 2023-2024: EUR412m
Similar to the fiscal year 2022–2023, Agrico’s turnover surpassed EUR400m. Agrico’s total revenue for the 2023–2024 fiscal year is EUR412m, even after the normal ware potato operations were sold to the new cooperative PotatoNext. The Dutch participants received a total payment of EUR226m. The revenue from seed potatoes increased by almost EUR29m, or 9%, over the previous year. The company’s overseas businesses have achieved a 15% increase in turnover compared to the previous season, mainly due to good market pricing.
A respectable average yield of 40.5 metric tons per hectare was eventually achieved despite a challenging growing season and a delayed harvest. With a 36% surplus, the product was remarkably coarse. Meanwhile, there was a strong demand for seed potatoes, particularly from chip companies and consumer growers. As a result, the payout price increased by almost EUR10 per 100 kilograms compared to the previous year. Agrico seed potato growers received EUR2,100 more per hectare than they did in the fiscal year 2022–2023.
Refocusing the Strategy
The world and the market have changed to such an extent over the past couple of years that Agrico is refocusing its strategy. A process in which the Management Board together with the Supervisory Board and the Board of Members determined the new direction.
“Key points in the new strategy are the further growth abroad, but also moving away more quickly from the less well-performing potato varieties and sales countries with disappointing turnover figures. This makes it easier for our operational people to manage the complex Agrico business more efficiently and to minimize failure costs. The investment of EUR15m in a brand new and advanced laboratory complex for Agrico Research, and therefore into stronger and more resistant varieties, will also bear fruit in the future,” Mark Zuidhof concluded.
