Aviko customises volume in fixed-price contracts per grower

The 2026/27 season is about finding the balance between supply and demand, says potato processor Aviko. To become competitive again in terms of cost price, a significant price correction is necessary. In addition, Aviko is discussing with the growers what volumes can be secured. On the other hand, there are several market-related contract forms and pool contracts. Seed potatoes are also becoming significantly cheaper. The European potato sector is currently strongly unbalanced due to the sharply increased total production costs, in combination with a record yield of 30 million tons of potatoes in Europe. To bring the sector back into balance, drastic steps are needed, believes Aviko. “If we want to remain competitive in the global sales of our end products, costs must go down everywhere. Especially within the industry itself,” emphasizes Aviko. This has implications for the fixed-price contracts that the company offers for the 2026 growing season. Fontane and InnovatorThe price for Fontane starts at €13.00 per 100 kilos, which is a decrease of €4.50 or 25%. In week 17, the contract price is €21.55, and in week 26 it is €24.08. The absolute decrease compared to last season is more than €5 (19%). For Innovator, Aviko pays €3 more over the entire contract period than for Fontane. From the field, the price is €16.00, compared to €19.50 last year. In week 17, the price is €24.55, and in week 26 €27.08. The decrease compared to last year for this variety is about €4, which amounts to 14%. The mentioned prices are exclusive of premiums and surcharges and exclusive of VAT. The storage fee for mechanical cooling remains unchanged. Weeks 1 through 28 are an important period for Aviko, from a quality perspective. Growers with stored potatoes want to utilize that, and the company tries to accommodate them with pricing. In addition to Innovator, the company continues to focus on the AAA variety group, which also includes Agria and Lugano. The latter variety is used by Aviko as the only large processor, with close collaboration with Agrico. According to the processor, Lugano can compete with Innovator and is very suitable for long fries, which are needed in the foodservice and retail segment. The cultivation of Victoria will be phased out in 2026 and will stop in 2027. Decreasing seed potato pricesSeed potato prices are decreasing on average by €510 per hectare, which amounts to €10 per ton. This should slightly ease the pain of the lower contract price. Those accustomed to using ATR seed potatoes can continue to do so. New contract formAviko is expanding contract forms. In addition to the fries guarantee contract (futures contract), there is the pool participation contract as a new option for growers. This contract form, which has specific conditions, was already introduced on a limited basis last year but is now being rolled out more broadly. The potatoes under this contract do not fall within the pool but are linked to the pool result and therefore the free market. The difference is that this form of marketing does have a price bottom. This contract form is only offered for the varieties Innovator, Lugano, and Agria. In addition to the contracts, growers can participate in the field pool or pool with and without pre-sales. The potato processor is clearly of the opinion that the potato acreage in Europe must shrink. Aviko does not implement a generic reduction in tons per hectare. The company evaluates agreements on a per-grower basis. “We want to go for a long-term relationship with our growers,” the company states. When closing a contract, prior years, delivery reliability, and loyalty are considered, as well as quality and distance to the factory. The quality aspect is particularly important, as Aviko focuses on high-quality potato products that it markets under its own label. Double dynamicsAviko director Dick Zelhorst speaks of a double dynamic that currently grips the potato sector. “On one hand, there is the fact that the overseas sales of fries are structurally declining. Especially due to competition from other countries. Five years ago, Europe and North America held 80% of the fries market. Today, that is very different, with newcomers like China, India, and Egypt. Consumption growth is also stagnating. There is still growth, but it is less than previously thought.” On the other hand, there is what Zelhorst calls the 'harvest dynamic.' “2025 was a perfect storm. Huge acreage expansion in Europe, followed by excellent yields, and that happened almost everywhere in the world.” Aviko is confident that by critically examining the total cost price of the chain—from grower to customer—Europe can become competitive again in the global market. There will also continue to be a market for free potatoes. “In Europe, where the yields are volatile, you cannot contract 100% of your needs. There will always be a spot market where you can sell or buy potatoes. Aviko must take advantage of that pool, now that the futures market is no longer functioning. A good alternative in our view is the pool participation contract.” For potatoes that Aviko buys at spot price, it uses its own settlement system. The spot price for this is composed in consultation with the ATC (Potato Growers Committee). Acreage decreaseAviko is also active in France and applies the same contract prices in that country as in the Netherlands. The company notes that growers there are more inclined to reduce their acreage, especially when they have not significantly invested in cultivation yet. The market for potato flakes is also experiencing a malaise in the global market. Aviko is also dealing with this through Rixona, where contract prices are also dropping for the 2026 growing season.