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Emlichheim, April 15, 2013

 

All farmers have now begun planting potatoes after the persistent cold weather over the last several weeks. The fields are being tilled 2-4 weeks late depending on the region.

 

This has severely curbed expectations for the 2013 harvest.

 

The target volume of 90% of the previous production quota was already missed in the previous year, even though the starch content (+1%) and dirt level (-1%) were very positive.

 

We are not expecting a higher process volume of starch potatoes in 2013 and must therefore focus more on quality and and the highest added value and will only supply our key customers.

 

Our conclusion in the first year following the decoupling from subsidies is that the design for the payment system we developed with our suppliers and shareholders worked.

 

We will be able to supply our plants with raw goods up to the start of the summer of 2013 in the dehydrate segment as planned. Here we are also focusing on ensuring the supply of our key customers with potato flakes and granulate.

 

In order to secure the raw goods for 2013/2014, as well, we have agreed to a 15% price increase with our farmers.

 

Due to the general development of the raw goods markets, we expect prices for potato starch and dehydrate to increase in the coming months.