At 10.30 this morning, during the opening of the “De waarde(n) van het land” (“The countryside and its values”) conference in Berg en Dal, the first new potato option was traded by Cees Veerman, Dutch minister for agriculture, nature and food. The option contract was developed in close co-operation with Rabobank Nederland, LTO Nederland and a consortium of nine parties active in the potato sector (De Vries & Westermann, Maynard & Keynes, and the trading houses H.Z.P.C. Holland, Korteweg, Van der Linde Exploitatie, Nedato, B. Schaap, Verhagen and Eriva).
According to Euronext.liffe’s executive director of sales Alan van Griethuysen, “The market approached us because there was a need for supplementary financial instruments for hedging price risk in the potato sector. We are very pleased to be launching the new options on potato futures following our consultations with various parties active in the potato sector.”
Sjors Kruiper, director of food and agribusiness at Rabobank, was pleased to see trading begin in the new options. “LTO Nederland and others have pushed hard for the reintroduction of this financial instrument. Potato farmers lacked the tools they need to help them obtain good prices for their potatoes. The new potato option is an excellent tool that meets this need. Furthermore, concentrating the supply of potatoes could help improve selling prices, which will enhance the long-term prospects for potato growers in the Netherlands.”
Jaap Haanstra from the LTO said: We and various other parties have been looking for new tools for marketing potatoes. We are very pleased with the market in potato options and the opportunities it offers, which give potato farmers an affordable alternative to contracts as a way of securing prices for their crops.
