01 Message from the Chairman

In the year Royal HZPC Group B.V. celebrates its 125th anniversary, we look to the future with a little nostalgia. What have the past 125 years brought us and what lessons have we learnt? There is no doubt that the core of Royal HZPC Group has remained unchanged. Where founder Hette Hettema literally got on his bike to cross the border, we continue to push boundaries to this day. We dare to choose innovation. We are broadening our horizons and tapping into new markets. Albeit, much further from home than Hette did, but with the same intention: meeting the demand for adequate nutritious food. We are developing new varieties with a view to a sustainable and liveable future. And we will continue to do so. By looking beyond borders and continuing to grow.

After all, the 2022/2023 financial year is all about growth. That came to a halt in the Covid years, but as of last year the upward trend was firmly back on track. That growth is now continuing and mainly concerns areas outside Europe. We are making great strides with licensed cultivation in Asia and America. The African market still offers a great deal of virgin territory and various opportunities for us. For example, we have high expectations for the introduction of hybrid seeds in West Africa in a few years' time.

Whereas in the first one hundred years of our existence we focused mainly on local areas, in recent years we have conquered the world. This makes Royal HZPC Group a genuine world player in the potato market. The expansion is indicative of the entrepreneurial spirit and drive in every capillary of Royal HZPC Group.

A major theme and the common thread in this annual report of Royal HZPC Group, is of course sustainability. Although seed potato farming is fundamentally sustainable, we can take important steps to make the potato an even more sustainable crop. In the coming years, many new robust varieties with important resistances will emerge. These varieties will thrive with fewer chemicals and less water and provide good yields even when conditions are challenging.

You can only really make seed potato growing more sustainable if you put sustainability high on the agenda throughout the chain. So we help growers future-proof their operations. We also engage with partners, suppliers and customers. And within Royal HZPC Group, we are always looking at how to make more sustainable choices.

At the same time, sustainability is about so much more than fighting climate change. Our main thrust and raison d’etre is providing everyone in the world with sufficient, good-quality food. This is and will remain a major challenge with the unprecedented growth in the world's population in the coming years. 'Zero hunger' is one of the United Nations' most important sustainable development goals for 2030. For us, it is the most important goal and goes hand in hand with the sustainability of seed crops across the board. We are confident that this goal does not compromise a healthy revenue model for the Royal HZPC Group and its growers and certificate holders.

The year 2023 was an extra-special year. Besides the 125th anniversary of Royal HZPC Group, we are also celebrating the 50th anniversary of STET. We are, of course, reflecting on this with our staff, growers, customers and partners. We are particularly proud that on 27 February 2023, HZPC was awarded the designation ‘royal’ from the hands of the King's Commissioner of the Province of Friesland Arno Brok. It is literally our crowning glory. From now on, our name will be Royal HZPC Group and we will add the crown to our logo.