02 Need

Our belief is that with the potato, we have the very best solution to feeding the world in a sustainable and responsible manner. That's why we make sure we reach more people every year with our potato varieties; with good basic material, licensed cultivation and eventually even potatoes from seed.

There was a certain dynamism in the European market in 2022-2023. Northern Europe had a good growing season in 2022-2023 with a successful harvest. In contrast, central and southern Europe suffered from drought and lower yields as a result. At the same time, we see the fries industry expanding significantly and asking for more acreage. The seed crop area was under pressure in 2022 due to high prices for crops such as cereals, sunflowers and sugar beet. In early 2023, the fries industry responded with historically high contract prices. Growing ware potatoes became more attractive and also caused seed potato prices to rise for the 2022 harvest. The price was 10% higher than a year earlier.

With regard to the 2023 harvest, Europe is slightly reducing seed potato acreage, shifts are taking place and a new equilibrium is emerging over time. The question is whether these shifts are due to the business cycle or structural changes. Planning acreage in a disruptive and dynamic market is tricky. It requires a keen assessment of risks and movements in the market.

The 2022-2023 financial year is all about growth. We grew from  887.000 tonnes in 2022, to 944.000 tonnes in 2023. That equates to growth of 6%. The growth is mainly due to areas of licensed cultivation, such as Asia and America. Our licensees on those continents traded 9% more volume of HZPC varieties this financial year than a year earlier. We are also preparing for the introduction of hybrid potato varieties in the Central African market.

We will thus be able to reach people in areas that, until now, have been difficult to access due to political situations, phytosanitary issues or because transport is difficult. We are constantly adding new countries, and increasing our sales with new potato varieties suitable for local growing conditions. In 2022-2023, we supply 99 countries with direct and indirect sales.

In 2022-2023, we had expected to make great strides in the Indian market. After admitting our varieties, Mahindra HZPC (as licensee there) has successfully introduced HZPC varieties over the last few years. A significant percentage of the volume traded by Mahindra HZPC now consists of our varieties. Unfortunately, India struggled with massive rainfall just before the harvest, resulting in a loss of acreage. Despite this, it was still a reasonable year. Next year, we are betting on substantial growth and focusing on the Indian fresh market and crisps industry in addition to the fries industry.

In China, we are also making considerable progress in terms of volume, with licensed cultivation. The Chinese fries industry mainly uses HZPC varieties. In order to realise growth, we are now introducing our varieties to the fresh market. In China, intellectual property protection remains a major concern.

In 2022-2023, fertiliser and energy prices remain high. They have reduced slightly, but for growers these are substantial costs. They lead to a higher cost price. Simultaneously, growers are becoming more conscious of the use of fertilisers and electricity. The improved seed potato price, however, means growers are still enjoying a good year, despite the rising costs.

Transport costs and container prices were unprecedented in 2022. This resulted in us having to pass on those costs in the seed price to more remote destinations. This meant a substantial price increase for customers, which growers do not see directly reflected in the seed potato price.

Food should not be used as a weapon in war. That is our belief. Everyone, anywhere in the world, should have access to healthy food. This means that in conflict areas, wherever we can, we continue to supply seed potatoes to both sides. The same applies to the conflict closer to home, between Russia and Ukraine. In doing so, we are aligning with the views of almost the entire seed industry. Besides a small amount of seed potatoes we supply to Russia, we will continue to produce locally in Russia in 2022-2023. In doing so, we are taking a clear risk.

In the early 1950’s, my grandfather Shamshul Hoque came to the Netherlands from Bangladesh. There, he saw first-hand how seed potatoes are grown and what the possibilities and yields were. He was convinced that there were plenty of opportunities to produce and sell high-yield seed potatoes in Bangladesh. In 1958, my grandfather founded the Eastern Trading Corporation. In 1979, my father took over the company and changed the name to Blue Moon International. I, Ariful Hoque, am now the third generation in this company. In 2007, the company revived its original name: Eastern Trading Company. Just like my grandfather, I too went to the Netherlands to see seed potato cultivation for myself.

In 1960, my grandfather introduced several varieties with good yields, such as Bintje, Patrones and Multa. In 2003, we expanded our business into seed potatoes for the fries and crisps industry. We have been working closely with HZPC and its predecessors for 64 years. We import seed potatoes, have trial fields here and sell seed potatoes across Bangladesh through an extensive network. Every year, we take stock of the demand through our network and then import the corresponding quantity of seed potatoes. We are the only distributor of HZPC seed potatoes in Bangladesh.

We are still very happy with our cooperation with HZPC. HZPC has supported us from the beginning and proved to be a very loyal and reliable business partner. And, last but not least, we know that HZPC never compromises when it comes to the quality of its seed potatoes. And you can clearly see that in the market. HZPC varieties simply outperform other varieties in Bangladesh. As far as we are concerned, we will do business with HZPC for at least another 64 years and preferably much longer.

The future still has its challenges; we are seeing demand for ware potatoes increasing, as is the demand from the fries and crisps industry. There is a great deal of competition, particularly in the fries market. So we need good varieties. We are also seeing the effects of climate change in Bangladesh, and this calls for new, robust varieties that can handle high temperatures.

There are also plenty of opportunities. We can do an even better job of bringing HZPC varieties to the attention of the processing industry. If they are enthusiastic about particular varieties, the demand for our varieties will increase among growers. Together with HZPC, we can then take great strides. We aim to further expand our network in Bangladesh. And ultimately, we want to become the best and largest importer and trader of seed potatoes in Bangladesh.