Adjustment French fries reference price (PAT-index)
A few years ago, DCA-Markets developed the PAT Index. That is a reference price for chips suitable for potatoes.
The PAT Index is adapted to the conditions of the market and the season every harvest year. For the 2020 harvest, the variety selection and the weighting have been slightly adjusted. The exact specifications can be found on the Boerenbusiness website: www.dca-markten.nl/PAT-index.pdf.
The price is continuously calculated from the transactions that the processing industry and trade in the Netherlands are obliged to report to the Branch Organization for Arable Farming (BO Akkerbouw). All these transactions are recalculated to the standard of French fries-suitable potatoes, 40 millimeters upwards for delivery within a month.
The basis of the PAT index is therefore past trades, which the sector is obliged to report. This makes it an excellent indication of the market for French fries-suitable potatoes. And that makes it an excellent price or benchmark to make agreements between grower and customer, for example. Or to benchmark the performance of a pool. These are the known advantages of a benchmark such as DCA-Markets makes as a so-called Price Reporting Agent (PRA).
The PAT Index is accessible to everyone with a free Farmers Business account.
Are you curious how we as DCA-Markets approach and guide the above? Or would you like to the discuss the opportunities in using benchmarks in your "supply chain". Then call 0320 269 523 or email contact@dca-markets.com.