02 Customers

The most important markets for HZPC are the fresh market, on the one hand, and on the other, the potato processing industry, which primarily comprises the crisps and fries sectors. We work closely together to ensure we know what the current issues are and to supply the best potatoes and seed potato products to consumers across the world. As a result of the Corona pandemic, many ‘certainties’ were jeopardised and where we had previously expected growth, we were confronted with a new reality.

In the financial year 2020/2021, as a result of the influence of the Corona pandemic, two important developments among HZPC customers played a role in the sale of seed potatoes.

In 2020, the fries industry had to hit the brakes in quite a dramatic fashion. Huge stocks of frozen fries had already been built up, which were more than adequate for fulfilling European demands. The cultivation of fries potatoes was cut right back and the overall sales of seed potatoes, in turn, fell by around 15%. On the basis of trends and developments, HZPC had assumed a growth scenario including the expansion of acreage and sales. It was too late in the season to anticipate the reduced demand from the fries industry and, as a result, HZPC sold 40,000 tons of seed potatoes less than planned. The forecast growth scenario, with an interruption of between one and two years, is expected to continue.

Although gas and oil prices have now returned to their former levels, they dipped dramatically in 2020 as a result of the Coronavirus crisis and political situations. Additionally, countries such as Cuba and Egypt had to face reduced incomes as tourists stayed away. This resulted in countries in areas such as the Middle East, the Caribbean region and North Africa having access to reduced levels of hard currency. As a result, much lower levels of seed potatoes were imported. Algeria, a significant buyer of seed potatoes from HZPC, even set an import quota in order to protect the local market and prevent too much hard currency leaving the country. Subsequently, HZPC Europe sold 20,000 tons of seed potatoes less than planned. Despite these conditions, however, STET was able to maintain sales and even realise growth in North Africa.

A variety may well be fantastic but only really succeeds when it enters the market. We therefore maintain effective and intensive contact with growers and customers, make sure we know what is going on within the market, and continuously work on varieties that fulfil particular needs and desires. Nevertheless, last season the introduction of new varieties was hindered by the fact that personal contact was practically impossible due to Coronavirus. Precisely this turned out to be of crucial importance at an essential process such as variety introduction. We were therefore unable to sell enough of the small quantities of seed potatoes of new varieties that HZPC produced.

Awareness of sustainability is growing. Both with consumers, companies and politicians. Levels of sustainability in the potato sector are largely determined by the choice of potato variety. Effectively, it all starts with what you put in the ground. But what constitutes a sustainable potato variety? And where do we find them? Along with our customers, we began to search for the answer to what they regard as a sustainable potato variety. We ended up with five topics:

• High market-suitable yield

• Fertiliser-efficiency

• Good for storing

• Disease resistance

• Need for fresh water

We have tested hundreds of potato varieties against these five areas, encompassing over 35 different potato characteristics. We have done this for various markets. And for many years. We have thus been able to create our reliable Even Greener model. We can now very accurately determine whether a variety is genuinely sustainable. With the Even Greener model, we can help our customers easily choose a sustainable potato. Not by focussing on one, single feature, but by weighing up a balanced set of five subject areas.

In 2015, HZPC founded subsidiary Solentum B.V. Agricultural innovations which, in the first instance, were developed and used by Research & Development within HZPC are further developed and commercialised within Solentum. Promising and smart measurement instruments, such as the SolGrader, SolAntenna and SolEye will then find their way to growers and the processing industry. Solentum was based on creativity and innovative prowess but, as a result of the corresponding complexity, is too far removed from our day-to-day tasks. We have therefore decided to call a halt to Solentum B.V’s operations as of 1 July 2021. Within HZPC, we are seeing an increasing demand for digital data across the agricultural sector. On the other hand, we also realise that this process of digitalisation is taking longer to develop than expected. There are multiple reasons for this decision.

In order to ensure optimum cooperation and the best relationship with our customers, it is important that we know what is going on among the customer base, what they need, and how we can serve them ever more effectively. Intensive contact and long-term relationships means we know our customers really well. It is also important to gain a general overview of how our customers experience HZPC and how satisfied they are. To this end, we conduct studies among all our customers in Europe which aim to answer questions such as: How satisfied are our customers? Which areas could be improved? What should we continue to do? The aim is to implement improvements so that we can offer even greater added value to our customers. Customers may choose to complete the survey anonymously or share their details. In the latter case, we can invite them to attend a meeting in person.

My dad and granddad grow mangos in India. When I close my eyes, I can still see myself as a youngster, hand in hand with my granddad in between the mango trees. That is the connection I feel to agriculture. My affinity with potatoes only came about when I moved to the Netherlands and started work for HZPC. I love the dynamic. Potato production takes up three months of the year. It has to happen in this time. This makes things pretty stressful but it keeps me on my toes.

A year later, I moved to STET. What makes STET unique is the strong focus. What we do, we do exceptionally well. We don’t shy away from risky markets, we operate within them. As a result, every working day is exciting because you never know what's going to happen. Within STET, we have short lines; if a customer calls to ask whether I can supply a specific seed potato, I have an answer from production within a minute. It’s this simplicity that our customers love. We can do this because there are only 40 of us working here. It really feels like an extended family.

I make sure that we apply our strategy in everything we do. This focus means we can pay our customers the attention they deserve. I am also responsible for six different market destinations. This enables me to keep my finger on the pulse. Within STET, we can shift gears quickly but we never lose sight of the longer term. We are extremely transparent in what we do and supply quickly and frequently early in the season. That’s precisely why STET performed incredibly well during the Corona pandemic.

I feel genuinely connected to our mission of global food security. In the end, it’s not just about your salary or your position. Our end-customers in a few third countries sometimes have just one hectare of land and that is their whole life. It is really special to be able to support them.