During the half-yearly trading day of potato breeder HZPC Holding B.V. today it appeared that the supply of certificates has increased again. The price of the certificate of share has been set at£ 118,15. This means a reduction of the value of the HZPC certificate by a maximum of 10%. The large supply offers buying opportunities for seed potato growers.
The supply of certificates is higher than ever. Mr Gerard Backx, CEO HZPC: ‘After many years with a limited supply, there are currently many – probably mainly older – certificate holders who want to sell their certificates. This offers opportunities for seed potato growers who would like to buy certificates’.
Over the next ten years HZPC will also buy shares itself in order to offer them to its growers. This is done via the so-called Connecting Growers program. Gerard Backx: ‘We find it important that the certificates are owned by growers who are still fully active themselves. In this way they are co-owners of HZPC’.
Connecting Growers program
This program was created to encourage the transfer of certificates from inactive growers to active growers. For a period of ten years, HZPC annually buys certificates for 1.5 million euro on the market to divide among its active seed potato growers in the European Union. In this way HZPC remains in the hands of its growers. This autumn HZPC has purchased the first shares for the Connecting Growers program and active growers of HZPC can benefit from this.
Price and market value
|HZPC financial year||2014/15||2015/16||2016/17||2017/18||2018/19||2019/20||2020/21|
|Share certificate||£ 113,15||£ 136,90||£ 165,65||£ 200,00||£ 162,00||£ 131,25||£ 118,15|
|Market value (x millions)||£ 89||£ 107||£ 130||£ 157||£ 127||£ 103||£ 93|
|Dividend/ certificate||£ 3,75||£ 5,75||£ 7,00||£ 4,00||£ 7,75||£ 1,00 ’21|
HZPC price and market value at 783.725 certificates.
Creation value of the certificate
Supply and demand set the value. This is also the case with the ‘Share Certificate HZPC’. Twice a year, in May and November, HZPC organizes a certificate trading day for connected (former) seed potato growers, breeders and employees of HZPC Holding B.V.
The purchase and sale of certificates takes place via an online platform and the trading day is supervised by a bank. The price can increase or decrease by a maximum of ten percent per trading day. The first certificates were traded in the financial year 1999/2000 at a price of£ 24.00. The next trading day is Friday, May 7, 2021.
At the moment the board of the Association HZPC is looking for possibilities to organise the trading day differently. In doing so the board takes into account the latest changes in legislation and regulations.
Gerard Backx: ‘We are investigating options that are positive for all certificate holders. A platform where suppliers and buyers do trade directly with each other for a certain period of time is one of the possibilities. The aim is to share more about this in November 2021’.