Chapter 3 About our organisation

Responsible food for a growing world population

Background

Each day we feed millions of people around the world with our potatoes. It is our mission to contribute to the development of responsible food for a growing world population. We currently reach 8% of the world’s population with our varieties. Our company operates on the international front, and we are a leader in the seed potato market.

We develop new, innovative potato varieties, and are a supplier of seed potatoes that are exported to 87 different countries. Our high-quality potato varieties are grown on practically all continents of the world. We work with 55 breeders and 800 growers. We produce roughly 70 varieties and together we supply 700,000 tonnes of propagating material per year.

Our core values are:

• We are dedicated to reach our goals*

• We think in opportunities to create outstanding solutions*

• We build long term relations and take responsibility for our actions*

• Our success is driven by knowledge and personal development*

Overview of the organisation

Executive Board*
Management team*
Supervisory Board*
Works council*
Manager*

From grower right up to consumer

The value chains in which we operate include all activities from the research for new and improved varieties, right up to the consumer who uses our products (as a fresh product, in the form of French fries, crisps or peeled potatoes). We want to add value to each component of these value chains.

The potato as a product has various value chains. For example, a consumer in Algeria who buys his potatoes at the local market is part of a different value chain, compared to a consumer in America who orders fries from a McDonalds restaurant.

We work based on a sector-oriented approach. Each sector focuses on a specific value chain. We operated in five sectors: Traditional, Retail Fresh, French Fries, Crisps and Peeled. The last three sectors are the processing sectors.

The Traditional sector focuses on the value chain in which the consumer purchases potatoes in an unpackaged state at the local fresh market. The Retail Fresh sector focuses on the value chain in which the consumer purchases fresh potatoes at the supermarket. The processing sectors focus on the value chains of consumers who purchase French Fries, Crisps or Peeled potatoes.

Collaboration in the chain

We want to improve our knowledge of potatoes on a constant basis, in order to develop new varieties which meet the requirements of our clients, along with our breeders. To set us apart from the competition, we want to provide added value to all parties in the value chain and also want to be a reliable partner.

We consult various parties in the chain and maintain close contact with the processing industry, for example. We seek solutions for questions with a social relevance. Like the French fry entrepreneur: ‘can you make a healthier French fry?’ Or the factory: ‘how can we produce in a smarter and more efficient way?’ We help search for solutions. With a product that constantly gets better and less food waste as a result.

“Conserve and protect natural resources”

Durk Seepma | manager Sippenburch

Solidarity with our growers

We are proud of our growers in the various countries. They supply high-quality seed potatoes and their companies are inextricably linked to us. This also implies mutual care and concern. Growers make an effort to achieve high quality. One of our corporate objectives is to pay our growers of propagating material a competitive and fair price in the various countries.

Special shareholder structure

HZPC Holland BV is a company with many involved parties. This means that we don’t merely make an effort to please shareholders, but try especially hard to achieve a sustainable result for our growers, breeders, employees and for society.

HZPC is literally a company of growers, breeders and employees. They are the only ones who can purchase and trade HZPC certificates. They finance the business with risk capital. HZPC certificate holders are united in De Vereniging HZPC. They hold 100% of shares. The General Meeting of Members elects and appoints the Executive Board.

The articles of association governing the company set out the General Meeting of Shareholders’ authoritative powers. In addition, the Executive Board must present specific decisions to the General Meeting of Shareholders for approval. Our important stakeholders: growers, breeders and employees, thus have a say in the company’s course.

Key financial results

 

2008/09 2009/10 2010/11 2011/12 2012/13
x EUR 1 million          
           
Result          
Consolidated net sales 225,9 210,4 283,9 229,2 280,6
Gross margin 34,3 32,9 43,2 39,1 46,1
Net profit financial year 4,8 3,6 8,6 4,4 1,0
Depreciation on tangible fixed assets 1,6 1,9 2,1 2,2 2,4
Investments in tangible fixed assets 2,7 6,2 1,0 2,9 2,1
           
Balance          
Equity capital excluding proposed dividend 32,7 34,1 37,1 38,6 38,8
Net cash flow from operational activities -0,5 7,9 0,3 3,9 8,7
Cash 22,5 20,5 20,6 12,4 17,8
Debts to farmers 17,5 16,9 20,0 16,6 20,8
Balance total 74,7 75,3 79,8 82,9 91,1
           
Capital in % of the balance total 43,8% 45,3% 46,5% 46,6% 42,6%