Gerard Backx, CEO of the Royal HZPC Group, says there is an imbalance in the Dutch seed potato market. He expects less volume of these potatoes to be available this season. Although there is a good tuber count in many areas, and the harvest should be successful, the wet summer significantly damaged some areas.
That reduces the availability of seed potatoes, delaying the supply from an already declining acreage. Despite these conditions, Gerard doubts this will cause a ware potato acreage shrinkage. Growers are finding creative solutions, like using 'farm-saved seed.' That, however, carries risks, such as increased disease pressure, especially if growers use unapproved seed potatoes for several consecutive years.
In January 2023, the fries industry caused seed potato market prices to rise by 40%, causing a major disruption. According to Gerard, that sector is upending the chain. That disruption led to some growers switching from seed to fries potato cultivation because of the better financial returns, putting further pressure on the seed potato market. HZPC is trying to address this tightness by offering growers higher prices, but it remains challenging. The company can take only limited action to deal with the consequences of this shift.
Given these circumstances, Gerard emphasizes the importance of tight planning and oversight in seed potato production. HZPC does both long and short-term planning and is in the process of implementing a new ERP system. It must help them keep a better overview and plan faster on a European scale. The system uses data by variety and region to adjust schedules throughout the season according to changing conditions like tuber numbers and yields. This new tool not only makes the planning process more accurate but also faster than before.
The new ERP system is essential to HZPC's broader transition trajectory. The old system, in use since 2001, no longer met modern needs and was poorly integrated, so it did not meet compliance requirements. HZPC recognized that they needed a new system several years ago, but implementing it was tricky. The company had to merge its internal processes to implement the new ERP system successfully.
HZPC eventually chose to partner with agrifood sector ERP system specialist FoodQloud to develop the system. Based on NetSuite, it is partly standard and partly customized to meet HZPC's unique demands. The system is being rolled out gradually and should be fully operational throughout the organization within two years. The goal is to streamline internal processes, save labor, and better understand profitability by plot, variety, and grower. Although functions within the company will change, there is no intention to cut jobs. HZPC plans to use the freed-up time to focus on customers and growers better.
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