02 Care for the environment

Natural resources must be respected and protected. As a company in the agricultural sector, healthy earth is our greatest asset. To contribute to the responsible use of the earth's resources, we focus on:

We look far into the future when developing new varieties. What will the world look like in 2050? Which issues will be on the agenda? What will our environment expect from us? By developing a vision, we aim to connect into what is required in the future. This vision is as follows:  ‘We stimulate the development of responsible food for the global population’ We do this with the smallest possible footprint.

In 2050, there will have to be enough food for 9.7* billion people. It's a huge challenge. But the potato offers huge potential. Compared with corn, rice or wheat, the potato provides good, top-quality and affordable food in a short period of time. And it requires (a lot) less water.

*source UN

The world of tomorrow will involve further tricky challenges. Climate change and land degradation (due to drought, heat, salinity), scarcity of fresh water, loss of biodiversity and the pressure on the available land will have a direct impact on worldwide food provision. This will require broadly-supported solutions. We see our task as working on a potato crop that is future-proof. We therefore aim to take the lead when it comes to developing new, robust potato varieties. Which is as free of emissions and residues as possible. And which capitalise on the conditions in each climate zone. Continuous innovation, collaborations in the chain and sharing expertise are key to this process.

Research & Development (R&D) is the driving force behind our operations. We have a broad network of trial field locations worldwide. We cover the most important climates and growing conditions in our varied trials. We aim to improve the performance of our varieties even further with ongoing research into the best degree of land use, irrigation and fertilisation per variety.

We use the latest breeding technology. HZPC's potato varieties are developed without the use of genetic modification (non-GMO). This policy continues to apply for the development of new varieties.

Are hybrid potatoes from seed the future? We cautiously asked this question a few years ago. Now, we are rapidly approaching a major breakthrough. Growing hybrid potatoes from seed could offer a significant contribution towards solving the world’s food problem, particularly in locations that are logistically hard to access.

Hybrid breeding allows many new, good quality potato varieties which can be grown with reduced pesticide usage to be bred more quickly. A hybrid brings out the best of two systems to create the very best overall performance. And, thanks to big data, we know everything about the DNA and which genetics we need to combine in new varieties.

In 2021, we had trial fields in Kenya, France and the Netherlands where potatoes are tested directly from seed. The trial was very successful. We expect to be able to enter the market by 2025 and will focus on locations such as Sub-Saharan Africa and India, where seed potato distribution is usually very challenging. After 2025, improved hybrid varieties will follow.

We also expect great things from mutating potatoes using a gene editing process, within the regular breeding norms. This innovation offers huge benefits. In Europe, the use of chemical pesticides is being rapidly reduced without sufficient alternatives being available.  This makes the risk of crop loss very real indeed. Thanks to techniques such as gene editing, quicker progress can be realised with respect to breeding. The European Union, however, has restrictive regulations in this area. Regulation and acceptance of such new technology by our stakeholders will always be decisive in how we work.

Marker-driven breeding is vital for the development of varieties on both the teraploid platform and the diploid platform. With marker-driven breeding, certain characteristics can be demonstrated very early in the breeding programme. This includes resistance to viruses, various nematodes (Globodera & Meloidogyne) and fungus (including wart disease and late blight). By applying this on a broad basis, we can find out just five weeks after sowing which candidate varieties fit into sustainable potato growing. This is a revolutionary acceleration compared to the four to eight years that used to apply.

Potato varieties that are resistant (less susceptible) to diseases require fewer chemical pesticides. This reduces the impact on the environment and ensures a good yield. The most intensive spraying in the field is carried out to combat Phytophthera (late blight) and aphids (which transfer PVY). That is why we are focussing on the development of varieties that are resistant to these diseases.

We are making huge progress. In 2021, Phytophthora resistant variety Cayman was introduced commercially. As well as being resistant to Phytophthera, this variety is also drought tolerant. Like many other varieties that are being introduced to the market, these Phytophthora resistant varieties have just one ‘lock’ on the door, i.e. a resistant gene. Our goal is to only introduce varieties with two resistance genes (two locks on the door) by 2023; this means the resistance is even harder to circumvent.

This has now been successful, using marker-driven selection to combat Phytophthora. This is a major success with respect to preventing diseases. With this technique, we ensure that our breeding programme provides almost all Phytophthora resistant candidate varieties with stacked (two locks on the door) Phytophthora resistance. A great example of this is the soon to be introduced fries variety ‘HOM 13-8236’. Another advantage of this variety is that it has a strong score on PVY (potato virus Y) and TRV (tobacco rattle virus) and also offers extremely high yields.

The diagram below shows the percentage of material that was provided by the first field generation:

Growers are already working with our improved varieties, such as Innovator, the fries variety with Pallida-resistance (potato fatigue - AM). The traditional variety Allison with its high yield is fully resistant to G. pallida. In the period 2020 - 2021, we did not receive a new variety list in relation to AM. The percentage of resistant varieties is also limited in the higher stages of the breeding programme (8%). The aim of 30% must also come from the expanded AM focus within the growing programme.

As well as AM and Phytophthora (late blight), there are increasing problems with PVY, Fusarium and Black scurf. These diseases can be tackled effectively using chemicals. However, the use of these chemicals does not offer any certainty for the future. That is why we must develop new varieties that are resistant or tolerant to these diseases. There are tests for PVY and Fusarium so we can change tack quite rapidly, however, very little is known about Black scurf tolerance or resistance.

When it comes to Fusarium, we were able to test varieties for resistance earlier in the breeding programme. As a result, we could identify the most susceptible varieties early on. This improved the average Fusarium score from 67 to 81 (on a scale of 10 to 99):

By increasing the dormancy period, potatoes can be stored for longer and the use of germination inhibitors can be reduced.

An example of this is Triple7 for the crisps industry or Camelia for the fresh market. We are now increasing our focus on selecting varieties with a good dormancy period. In this context, we have concentrated on the Retail Fresh, French Fries and Crisps sectors.   By 2024, we expect the score to have improved by 20 points. As a result of targeted selection, we were able to increase the average score from 63 to 75 points (12 points).

As well as preventing crop losses and reducing pesticides, we are also focussing on the potato's water footprint.

Prof. Dr. Eng. Arjen Hoekstra, professor of water management at the University of Twente, developed the 'water footprint' concept, a model which provides an understanding of the volume of water required for producing products and services. The average worldwide ‘water footprint’  for potatoes is 287 litres/kg. This is significantly lower than wheat or rice.

Average worldwide water consumption for other crops and production:

HZPC is also developing varieties which can provide a good yield with less (fresh) water. Drought trials have shown that young, traditional varieties such as Farida and Sababa can realise good yields in dry conditions and also generate extra yields when more water becomes available. The new variety Cayman also scores well for this characteristic. Alongside drought, other abiotic stress factors will become increasingly common.

We are busy developing sustainability indicators. Various tests and trials have been under development for this purpose:

• Watersafe trial (drought trials)
• Disease and resistance tests
• Salt trial
• Heat trial

We are part of the ADAPT project. This is a large European collaboration that examines the combination of heat and drought. These two stress factors often occur together. We are also seeking a location where we can better test our varieties for heat stress.

How can we, in the potato chain, contribute towards a more sustainable food system? This question is central to our chain management. As a breeding company, we are positioned at the start of the most amazing food chain ever: the potato chain. Together with our seed (potato) growers, we would like to make a positive contribution with a footprint that is as small as possible and fits into the Farm to Fork strategy, which is part of the Greendeal. We focus on various phases in the chain: sustainable production of mini-tubers, up to storage. And, the provision of support so that customers can select varieties on the basis of their sustainable characteristics.

1. Developing sustainable potato varieties
2. Growers with a sustainability plan
3. Socially responsible purchasing
4. Use of new techniques to realise improved sustainability

The potato varieties we have developed and are developing are helping to make potato growing more responsible. We focus on new varieties whereby yield is maximised/assured with reduced input.

We want to work with growers to reduce the footprint for potato growing. Our biggest contribution to improving sustainability among growers is provided in the form of seed potatoes that perform well, even under tricky conditions, and that require the lowest possible input. We also see our role as a connector and facilitator. In the end, the grower will make his/her own choices that fit into their operations.

Some of our growers have been actively improving sustainability in relation to business operations for many years. We want the number of growers working with a sustainability plan to expand to 100%. To realise this, in 2018 we set up the ‘Growers with a sustainability plan’ working group. This working group primarily focuses on two activities:

1. Developing a measurement method in consultation with growers to assess how each grower is doing in terms of environmental issues
2. Energy-neutral storage among growers

We have temporarily paused the development of a measuring method which can show the environmental score for growers. The working group would like to take a step back and focus on formulating collective, sustainable goals. Goals that connect growers and HZPC. That is why we have prioritised the theme of healthy soil.

The Farm to Fork strategy is an important element of the European Greendeal. The goal of the EU is to accelerate the transition towards a sustainable food system that takes account of:

• having a neutral or positive impact on the environment
• mitigating the impact of climate change and ensuring there is climate adaptation 
• reversing the loss of biodiversity
• taking care of food security
• Keeping food affordable and at a reasonable price

We have installed an international working group that examines which topics within the organisation require acceleration with respect to improving sustainability. 

The combination of healthy soil in which robust varieties are grown ensures that the potatoes thrive, with a smaller footprint. The soil plays a central role in important social developments that have a direct impact on the chain:  

• reducing dependence on chemical pesticides
• the nitrogen problem and the loss of biodiversity
• thinking in terms of recycling 
• reducing soil compaction and improving soil fertility
• ongoing, very high requirements for quarantine organisms and the more or less total absence of diseases such as viruses, fungus and bacteria. 

Within the social context, we would like to find an answer, along with our growers, to crucial questions such as: What must change in order to grow and supply good initial material in the future? How do we get a grip on the virus problems with reduced use of pesticides?  That is why, in 2020, we began working with a group of 14 growers on the project Integrated approach to future-proof seed potato growing.

This project will last for four to five years and will focus on the development of an integrated approach which could change seed potato production so that we can tackle the current and future challenges and virus issues. We aim to amalgamate the expertise and experience of growers in the project group as far as possible and then reach out to other growers.

Fertigation, the drip-fed addition of water with fertilisers, is the answer to optimising yields with limited use of fertilisers. This is especially the case when water is the limiting factor in the growing process. The use of fertigation allows the water and fertiliser application in a plot of potatoes to be very specifically attuned to the crop's needs. As well as water savings, this also offers improved yield per hectare because fertilisers can be used in a much more effective way. Fertigation is a tried and tested method in greenhouse farming.

In 2021, the collaboration with Yara (fertiliser), Netafim (irrigation) and a player from the fries industry conducted its first trials to test fertigation with potato growing in the Netherlands. We expect fertigation to significantly increase in the coming years within potato growing in order to reduce the use of water and fertilisers and improve yields.

Mesh covers and straw seems to be highly effective protectors against aphids and, in turn, virus in seed potato growing.  We have conducted successful trials in France, the Netherlands and Poland. The field trials were carried out with a mesh cover and straw in clone growing. The aim of this was to keep seed potato growing free of virus for as long as possible without the use of chemicals.

The results of the field trials are very encouraging. Not only have the number of virus affects been reduced to zero, the impact on the number of tubers has also been limited; a reduction of less than 3%. The trial will be further expanded in 2022.

Since 2021, we have been affiliated with the Sustainable Agricultural Initiative Platform. The SAI Platform connects stakeholders in agriculture and manages the sustainable transition by means of collaboration.

Natural resources such as water, fertile land and fossil fuels are under pressure in Poland. HZPC Poland is a member of the Association of Sustainable Agriculture (ASAP). This organisation focuses on improving sustainability within agriculture via growers, raising awareness among consumers, and working on a collective agriculture policy in the context of the European Greendeal. The ASAP also supports growers who are preparing for certification, such as the international standard of Farm Sustainability Assessment (FSA) of Global G.A.P.

Global G.A.P. is the worldwide standard for safe food production in the chain. Growers affiliated with HZPC Holland must comply with the Global G.A.P. standard. The certificate is based on food safety but various CSR criteria have also been included. The grower must comply with statutory rules with respect to crop protection, for example.

Ware potatoes in the Netherlands are grown according to the PlanetProof standard. PlanetProof is an independent seal of approval which shows that production is taking place in an environmental manner.

In 2030, we would like seed potatoes to be stored by growers in an energy-neutral manner. This not only reduces CO₂ emissions, it also saves growers storage costs after an initial repayment period. The aim is to generate solar or wind energy to power climate control for the seed potatoes. The inventory in 2019 showed that 38% of the 489 growers in the Netherlands has solar panels and 14% has a wind turbine.

In 2020, we started a project to encourage the installation of wind turbines among seed potato growers. Because the mechanical drying, cooling and sorting of the harvest tend to take place in autumn and winter, wind energy is a great choice.

We have selected two suppliers who can install wind turbines on farms with a simplified permit procedure. A wind turbine with a capacity of 30,000 kWh, for example, is sufficient for storing the harvest from 25 hectares of seed potatoes. The first wind turbines were installed In 2021.

Purchasing within HZPC is not centralised within a purchasing department. That is why a working group has been created to focus on ‘Use of sustainable packaging materials’. The working group's composition changed in 2021. One of its first focus areas was the creation of a new measurement system for purchasing.  The figures from the past will no longer be used as the calibration point. The figures that we present will apply to HZPC Holland B.V. At the end of 2024, we aim to have a policy for sustainable packaging and waste for all HZPC companies in the EU.

Seed potatoes are distributed unpacked (in bulk) and also packed in jute, wooden crates, plastic or Big Bags. We aim to reduce use of packaging per ton of sold seed potatoes. We will also aim to expand supplies in bulk (unpacked). We will aim to reduce the use of plastics to zero. So we can prevent waste.

Our Packaging working group is focussing on the issue of how we can improve the sustainability of our packaging materials, reduce the use thereof, and reuse or recycle the materials.

Banning plastic

We would like to replace all plastic packaging with other materials. In the short term this means that single-use plastic is replaced by biodegradable alternatives such as jute, or materials that can be reused.

Prevention of child labour

The fact that the plant-based jute bags come from Asia means there is a risk of them being produced using child labour.  We do not accept child labour and have made contractual agreements with our suppliers. Since 2020, all our contracts have contained a clause about child labour. These also contain the right to conduct audits. No audits have been carried out so far.

HZPC helps growers and customers with innovative tools and sustainable methods that are useful in the chain (sustainable harvesting, storage and processing). We thus reduce the necessary input (e.g. chemical pesticides, water or fertiliser) and thereby reduce the risk of wastage.

We support our growers across the globe. Even smaller growers in countries such as Africa and Asia benefit from partnerships. Over the past year, we have developed an app that they can consult. This allows us to share expertise which can also help smaller growers to increase their yields. The app offers practical, technical growth information and advice, such as explaining the best times for planting, and noting which varieties are suitable for particular soils. Advice is also provided about fertilisation, crop protection agents and irrigation. At the moment, tests are being conducted on how often the app is used. On the basis of these results, we will decide how to proceed.

In 2020, we finalised the first phase with regard to using relevant, available, agronomic data (such as registration or satellite imagery) for the purposes of optimising growing. The data from the pilot will first be used to analyse our own data for yields and then the management data will be examined. With the combination of data, we can make conclusions regarding which varieties perform best in specific soils.

These conclusions will be taken forward into the second phase of the pilot in 2022. We will also investigate whether, in the future, we wish to use the Cool Farm Tool. The Cool Farm Tool is an international measurement system set up to provide growers worldwide with data so that they can make growing decisions that will reduce their environmental impact. The CFT measures three main issues: greenhouse gas, water usage, and biodiversity.

This smartphone app is a real-time tool which supports growers with decision-making throughout the process of planning the harvest, to supplying the potatoes. In 2020, the app was tested in Finland (15 growers) and the Netherlands (3-5 growers). The response in Finland to the app was positive but, in the Netherlands, the need for the app seemed to be lower. On the basis of this feedback, we will look into which countries will gain the greatest added value from the app.

In order to provide people across the world with potatoes, we distribute seed potatoes from the Netherlands or grow them locally (in Europe). The task of distributing seed potatoes is primarily based in the Netherlands. For this reason, more transport movements take place in the Netherlands, compared to other countries. Transport is the biggest element in HZPC’s CO₂ footprint. The challenge is to organise logistics as efficiently as possible in order to limit the number of transport movements.

Optimising Transport working group

The Optimising Transport working group is tasked with formulating and planning (and implementing) in order to reduce the impact of transport on the environment.

The working group has formulated three goals:

• optimising transport movements/reducing partial loads
• increasing/optimising container transport via internal waterways in 2020

• CO2 reduction for bought-in transport: contributing towards the transport sector's targets (TLN) whereby the aim is to reduce CO₂ by 49% in 2030, compared to 1990

Insights into CO₂ emissions via the Big Mile platform

We use three major transport companies to distribute our seed potatoes. Two of these, just like HZPC itself, also use the Big Mile data platform. We would like all transport partners to report via this platform in the future. The data platform enables insights to be gained into emissions and the efficiency of how transport is organised.

Since 2020-2021, we have split the registration of road transport into bulk and container transport. This clarifies the variance in CO2 emissions of container transport by roads in 2020-2021, compared to 2018-2019. The reduction in CO2 emissions from sea transport (bulk) from 2017-2018 to 2018-2019 was realised due to the replacement of a ship by the transporter. The difference in emissions between bulk sea transport and container sea transport can be explained by the type of ship that is used.

We would like to focus on using internal waterways for freight. Transport by truck has a greater impact on the environment and is costly. 1141 of the 2752 containers (carrying 27.5 tonnes of potatoes per container) were transported to the port of Rotterdam in the 2020- 2021 period via Dutch waterways.

In 2020/2021, we had to use more road transport than planned. This was due to the scarcity of containers and an expectant market. Logistics were more difficult in terms of planning. There was a need for flexibility in logistics and that is why more trucks were used.

We expect our transporters to apply a clearly formulated sustainability policy. Our preferred partners have been sent an inventory list in relation to sustainability. We are working alongside our shipping transporters to assess whether we can use their new, environmentally friendly ships. Whether this works, depends on the routes used. There are ongoing negotiations with internal shipping companies about CO2 emissions, the use of the Big Mile data platform, and incorporating all transport under one roof.

As well as making transport efficient and more sustainable, there is another option: less transport. This is realised by means of local growing. Within SBA Europe* from HZPC, we can significantly reduce the numbers of transport kilometres for seed potatoes and potatoes using local growing. As a result, we can meet demands in countries where HZPC has seed potato production areas. In 2020/2021 HZPC produced more than 23,627 ha of seed potatoes. Around 70% of this production took place in the Netherlands.

(*SBA Europe: Strategic Business Area Europe van HZPC Holding BV)

In Europe, HZPC has eight countries which produce seed potatoes. The seed potatoes sold in these countries were locally produced for local growing. We would like to see local growing being expanded, wherever possible. We are therefore growing on a ‘local for local’ basis in the UK, France, Belgium, Germany, Poland, Finland, the Netherlands and in Russia.

Seed potatoes produced locally as a share of the overall seed potatoes sold in European producing countries including the Netherlands:

*Excluding Belgium. A new calculation has been applied to these figures.

The Local for local growing has been recalculated for the last few years. HZPC produces in Belgium too but the share is very small compared to sales. This gives a slightly distorted picture concerning the actual percentage of local for local, which is increasing each year.

In countries where HZPC has local production, top-quality seed potatoes are often imported from the Netherlands to be grown on over several generations. The seed potatoes are then released onto the local market for the production of ware potatoes. HZPC is aiming to produce more top-quality seed potatoes in seed potato growing countries. Exports to other countries in Europe, the Middle East, Asia and Africa mostly occurs from the Netherlands.

Setting up local facilities for the production of mini-tubers

In various countries, such as the Netherlands, Russia, Canada, India and China, we have set up our own local production facilities for mini-tubers. Aside from this, we are also exploring the options for sales of potato seed.