01 HZPC and CSR

Founded in 1898, and rooted in Dutch soil, HZPC has expanded to become an international market leader when it comes to potato breeding, seed potato trading and concept development. With around 400 employees in 16 different countries, we export our seed potatoes to over 90 countries.

We have approximately 100 varieties that are optimised for local growing conditions and also offer innovative potato concepts that fulfil current trends and expectations. We help to ensure healthy food is available, in order to ensure the well-being of people worldwide.

With an expanding global population, the demand for food is constantly increasing. And the potato offers the perfect solution. Our product is naturally sustainable and we are making a real difference thanks to genetics. Varieties that are resistant to disease have a higher harvest certainty and offer greater food security. Top quality initial material ensures higher yields per square metre, a sustainable crop and healthier, more affordable food. We are working on these developments day in, day out and aim to lead the field in our sector.

Together with our growers, producers and consumers, we are committed to improving research and the cultivation and usage of potatoes all around the world. That is why we continuously strive to develop efficient varieties that are adapted to different uses, climates and growing conditions.

As an ambitious market leader in the seed potato market, we aim to inspire the whole potato value chain. We believe we must share expertise and collaborate on growth and development in order to offer added value and reinforce our leading position within the international market.

Aims and spearheads

• We are passionate about potatoes. Together with our breeders, we continuously improve our knowledge of potatoes in order to develop new varieties that meet our customers’ requirements.
• We are proud of our growers in the various countries. They supply high-quality seed potatoes and their companies are inextricably linked to us.
• To set us apart from the competition, we want to provide added value to all parties in the chain and serve as a reliable partner.

• We firmly believe that a good relationship with our customers helps us to fulfil their needs.

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 seed (potato) growers a competitive and fair price in the various countries.

Collaboration in the chain

We are constantly expanding our expertise in relation to potato genetics. Together with our breeders, we develop varieties that fulfil our customers’ requirements. To set us apart from the competition, we want to provide added value to all parties in the value chain and function as a reliable and trustworthy partner.

We also see a role for ourselves in the chain as a facilitator so that growers, particularly in Africa and Asia, can take advantage of opportunities. By supplying new, improved potato varieties and sharing expertise, we can help growers to expand their growing yields and reduce their risk of losses. Thanks to innovations such as hybrid breeding, we will soon also be able supply potato seed to areas where it is difficult to distribute seed potatoes.

The various value chains in which HZPC is active

Special shareholder structure

HZPC Holding is a two-tier board company with an Executive Board and a Supervisory Board (RvC). We are a company of engaged individuals. This means that we don't just focus on creating shareholder value. We aim to realise a sustainable result for our growers, breeders, employees, customers and society as a whole. The 'Vereniging HZPC' (Association HZPC and owner of the HZPC shares) has certified all the shares. Only (former) growers, (former) breeders and (former) members of staff may purchase and hold certificates. So, HZPC Holding is quite literally a company of growers, breeders and employees. They have a voice in the course of the company and finance the business with risk capital. Certificate holders can also register as members of the Association and employ their right to vote.

By 2050, the global population will have risen to around 9.7 billion people. Sufficient food will have to be available in order to feed all these people. The quantity of available square metres of agricultural land is gradually reducing around the world. Diseases affecting food crops, limited product knowledge and inefficient processing lead to lower yields and even food waste. Conflict, financial instability and climate change also affect food security. At the moment, around 800 million people suffer from hunger across the world.

Another challenge is the loss of biodiversity and the exhaustion of natural resources, such as fresh water. Finally, the distribution of food is another challenge; there is an obesity epidemic in western countries and malnutrition in developing countries. The lack of nutrients in what people eat is a key factor. A shortage of vitamins and nutrient components leads to impaired health and reduces well-being amongst large groups of people.

As a world-player when it comes to potato breeding, trading and product development, we work hard on supporting the development of responsible food for a growing world population. The need for affordable, responsible food is constantly increasing as the world’s population expands. The potato can play a significant global role herein. Our most significant contribution is the development of good genetic initial materials.

The United Nations set 17 ambitious objectives in 2015, which they called: Sustainable Development Goals (SDG’s). These SDGs were signed by 193 countries worldwide. This enables a collective focus on topics such as climate, health, well-being, tackling poverty and responsible consumption and production.

HZPC is specifically focussing on the following Sustainable Development Goals:

HZPC is also contributing towards:

HZPC has relationships with lots of different stakeholders. There is a different role for each of these stakeholders; there is the role of employer, purchaser or client, supplier, supporter, producer or partner.  We want to be transparent in all we do, with respect to these stakeholders.  We also maintain good relationships within which we can engage in effective dialogue. This is so important to us that we have established it as one of our core values:

We have charted our most important stakeholders and defined them as follows: affiliated growers, affiliated breeders, employees, consumers, customers, governments, (food) science, suppliers, social organisations, certificate holders, umbrella organisations. We enter into dialogue with them in relation to our topics and take action based on their feedback.

In order to inventorise and select the relevant reporting topics we use:

• GRI guidelines
• previous HZPC annual reports and CSR reports
• input from opportunity and risk analyses
• input from internal and external stakeholders

In 2021, we carried out a stakeholder consultation. To this end, we consulted a large group of stakeholders; breeders, growers, customers, customers of customers, social organisations, employees and the management. On the basis of a digital questionnaire, we elicited their opinions on HZPC's CSR policy.

We identified important subjects with respect to the environment, food security, society and the economy. These topics are relevant if we can exercise influence over them. They have the biggest impact on operations and generate most concerns among stakeholders. By investigating, weighing up and prioritising these topics, we have been able to set the material subjects and harmonise with the Board and the CSR steering committee. These topics are further elaborated within our policy and programmes.

• developing new varieties which maximise/secure yield, with reduced input (smaller footprint)
• growers with a sustainability plan
• local for local (Lokale production for local lokale destinations)
• responsible chain management
  • prevention of child labour
  • optimising transport
  • sustainable and responsible purchasing
• more varieties for more countries
• taking care of genetic resources
• supporting healthy food 
• building human capital
• stakeholder dialogue and transparency
• economic performance

We have an Integrity Counsel where employees, customers and growers can ask for help with any questions they have concerning integrity, or report possible violations of integrity

HZPC Holding B.V. has a two-tier board which incorporates an Executive Board and an independent Supervisory Board. The latter appoints the members to the Executive Board.

Our Code of Conduct contributes to a high ethical standard. Together with good judgement of employees, the code also supports mutual solidarity and pride.

HZPC is active in seed potatoes across the world. We have trial fields, where new varieties are tested, in various climatic zones. These trial fields are also located in poverty-stricken areas, where child labour could be an issue. Products that we buy as an organisation, such as jute packing materials, may also be produced in areas where there is a risk of child labour.

We do not tolerate child labour within our organisation or branches. We also expect this from our agents, breeders, growers, suppliers and other parties involved with HZPC. For the definition of child labour, we follow the UN convention on the rights of the child and the convention from the International Labour Organization (ILO) c-138, 182 and 184; we also trade according to the Plantum regulations.

The Working group for prevention of child labour focussed on the following in 2020-2021:

• implementing internal policy
• training employees

• including clause when concluding new contracts

The e-learning module is used to train employees to be aware of the child labour issue and to recognise it when required. They also learn how to report child labour. In the period 2020-2021, 104 employees completed training.

Newly concluded contracts have contained a standard child labour clause since 2020.

The contracts state that we may conduct audits at production locations and suppliers’ premises in risky areas. No audits were carried out in 2020-2021.

Gerard Backx, CEO of HZPC, is the Chairperson of Breeders Trust N.V. (Breeders Trust is an organisation of eleven seed potato breeding companies from Germany, the Netherlands, France and Denmark)

Other external representations:

• Euroseeds
• Plantum
• Nederlandse Aardappel Organisatie (NAO) [The Dutch Organisation of Potato Merchants] and Europatat
• Carbohydrate Competence Centre
• VNO-NCW
• Small farmers big deal
• Agrofood cluster
• Sustainable Agricultural Initiative (SAI)
• Potato Sustainability Alliance (PSA) in Noord-Amerika
• The Potato Valley