"It's vital to all have the same vision and interest. We must focus on adding the maximum value to potatoes, with much attention to greatly reducing waste throughout the chain, from grower to customer. That's how we see the future," begins Jan Bijleveld, CEO of PotatoNext, a new Dutch cooperative for conventional ware potatoes. It bundles Nedato, Agrico, and Leo de Kock's table potato activities. Just over a month ago, it started by integrating Nedato and Leo de Kock's packaging companies into a joint facility in the Netherlands.
Mariska Werring and Jan Bijleveld
CCO Mariska Werring, who, along with Jan, manages this new cooperative, adds: "We're the country's largest ware potatoes cooperative, and want to be a modern one. That means the packaging companies and growers must adapt so we can take steps towards modern cultivation techniques, improved storage and varieties, and a data-driven way of working. Thus, we can become a healthy organization and realize the highest possible grower prices."
Out of the box
The shrinking table potato market is an essential fact. "Ware potato sales are falling in the Netherlands and surrounding countries. That means we must eventually look at where we can add even more value for our growers," says Jan. In doing so, says Mariska, all options are considered. "The future demands we think 'out of the box' to develop innovative concepts, and organizations must be open to that. Your members and you have to look at that together and say, 'this is what we're doing now, but what's possible?'" she says.
That includes adding value to residual streams. Mariska explains that although the potato chain does not seem to cause waste, since it is not very visible, there is product loss in every step from harvesting to the consumer. "We all often consider the end of the chain and focus on more sales. But we look at how the crop can be valued at a higher level, too, so you can pay your growers more. That's our ultimate goal. You want all parts of the chain to have healthy margins so that together, you're future-proof."
Further consolidation
Further consolidation has not been ruled out either. "That's not impossible. This - merging two production companies and two grower groups - is the first step toward consolidation. In the past, you competed; now, you work together. We have far more faith in creating synergy by working together than competing with each other. That brings you nowhere," Mariska reckons.
That synergy is reflected in, for example, the opportunities PotatoNext can offer growers regarding certification. There, Jan has seen that the burden of all the requirements and work is becoming so much that scaling up is needed. "Certification is increasingly becoming a profession,” he says.
“What was added ten years ago is now a separate department, which also involves considerable cost. Those have risen from, so to speak, €100 annually to thousands of euros. Growers must almost be accountants." Bundling PotatoNext means they can set up a better support division, Jan explains: "That also lets us participate in programs and have a say in certification development."
Complete assortment
Merging these different companies has the added advantage of creating a complete assortment, thus allowing for better processing. "Plus, that opens up new markets they couldn't serve as well before the merger and can now serve more constantly. That should undoubtedly bring in new customers," Mariska notes.
Mariska and Jan
It will take PotatoNext about two years to shape the merger and form a joint packaging company. Mariska says the process began on October 1. "We first need a few months to get to know the companies in detail and fine-tune our further vision. The members, board, and Supervisory Board - which has also been reappointed - will jointly gradually consider where we're headed," she concludes.
PotatoNext has around 220 affiliated members and uses a General Assembly (GA), where members can vote and decide, says CEO Jan Bijleveld. The cooperative's management consists of members and a Supervisory Board. "We should thus have established a fast, decisive cooperative structure that can respond quickly to changing market conditions. To prevent PotatoNext from becoming a sluggish organization - as is often the case with cooperatives - we've made the lines of communication very short. That should greatly increase all the members' involvement, and they'll undoubtedly have a much greater voice and active approach."
Jan Bijleveld
[email protected]
Mariska Werring
[email protected]
PotatoNext B.V.
Jan van der Heijdenstraat 48
3261 LE Oud-Beijerland
+31 (0)186 64 59 45
[email protected]
www.potatonext.com