"No compromise on new strategy"

After the merger of growers cooperatives Rainbow, Paprika XL and FrEsteem a few years ago, new fruiting vegetable cooperative Harvest House was formed. Only the last boxes still recall the past. Managing director Jelte van Kammen and commercial manager Hans Derks are committed to a steady course. "In the past, there would be quite a lot of divergent thoughts on subtleties within the club. Now we have outlined a strategy that we won't compromise on. Other members are welcome, but we stick to our course. Better to have fifty growers who think alike, than a hundred growers facing three different directions."

Harvest House has seventy growers with a total acreage of about 800 hectares (390 hectares bell peppers, 385 hectares tomatoes, 10 hectares eggplants, 3 hectares cucumbers, complemented with a few specialties). The growers achieved revenues of around 500 million Euros last year. "The unique thing about our club is that all the activities we carry out, whether it's about sales or packaging, serve the grower. We are very transparent. Growers come in to the sales department each day. In addition, we are one of the few cooperatives where produce goes to the next link in the chain at a price that is clear to our growers. We are no end, but a means. We always tell our growers: when the means doesn't function, don't walk away, but engage in conversation to organize the means differently."

Jelte van Kammen

Fruiting vegetable specialist
Thus, the directors aren't eager to expand. "Growing bigger is not an objective, although you do need a certain scale to ensure a professional supply and achieve efficiency. We also think it's important that growers are aware of how supply is organized. Too often they think that everything is all right, while not really knowing how things are. We mainly want to do well for our associated members, and aren't actively seeking acquisition, but new growers with the same objectives are welcome, of course. The growers are our ambassadors in this", Jelte says. "There is in fact demand for expansion of our cucumber and eggplant acreage. Ultimately, we have also stated in the mission that we want to be the Dutch fruiting vegetable specialist."

"We also believe in supply pooling. But this can't be achieved when we alone are actively pursuing this. There are still eight large fruiting vegetable cooperatives, with a lot of free growers as well. In the long run, that's a bad situation", Hans says. "Adding new phone numbers of salespeople only creates unrest in the market, which doesn't benefit export either. Two well-organized chains should be sufficient. This way, the market becomes clearer and more stable."

Hans Derks

Strategy
Last year, Harvest House got a negative response to its application for GMO. This year, during Harvest House's general meeting, it was decided not to submit a new GMO application. "The national strategy is valid for 2014, and will be continued in 2015. This situation doesn't give enough certainty. Therefore, some time next year, our members will decide if we have enough confidence to submit another GMO application in 2016", Jelte says. "Our minister has already said that GMO legislation does not match legislation of current sales structure in Northern Europe, and we agree with that completely. How sales direction should take place, was often interpreted in different ways by inspectors from Brussels. Now we can talk much more freely, and we can use that energy elsewhere."

One of those things where Harvest House is now focusing a lot of energy, is discussing shelving with retailers. "Population in Western Europe is ageing, and the number of consumers won't go up, but consumption of fruiting vegetables can easily increase. We keep focusing on taste tests, and reject varieties that do not match our criteria. Interest in healthy eating is increasing, and with our fruiting vegetables we contribute to a healthy lifestyle. That's why we put a lot of energy in marketing. This year, we are running a project with a Dutch and Belgian retailer, and next year we're following up with a German supermarket. We gather market data, trends and customer insights, so we can give sound advice to the market. Sharing knowledge gets us ahead, and the more shoppers you get, the better that is for both parties", Hans concludes.

Developments in faraway destinations are also followed closely. "Talks are in full swing to open up the Chinese market for Dutch bell peppers. We have been involved with the incoming trade mission. It is of course a market with huge potential. The Conference pears showed that there are opportunities. If all Chinese people start consuming one Dutch bell pepper per year, we can add a lot of sales", Jelte says. "Furthermore, Russia remains a large market, and every year quite a lot of bell peppers go to the United States and Japan. Currencies and weather conditions do cause a certain vulnerability."

Year-round cultivation
The focus at Harvest House is on year-round production. "You can achieve this through assimilation lighting, cooperation with local parties, or by growing elsewhere yourself. With tomatoes, we have the year-round production covered for the most part with assimilation lighting in the Netherlands, and we are also looking into year-round cultivation of bell peppers. An extra advantage is that, thanks to crop rotation, you also get less supply during traditional peaks. In addition, growers using lighting have generally achieved higher returns", Hans says. "A number of growers are also participating in a cultivation project in Ukraine, and our growers have cultivation locations abroad. The idea is that growers themselves lead the way. If we would initiate projects like that, you would miss the true entrepreneurial drive of growers, who are themselves present on-site."

Jelte confirms that. "Like Philip van Antwerpen of Agro Care, who left for Tunisia with his family a few years ago, that's entrepreneurship with a capital E. I find such enormous drive and decisiveness fantastic. Incidentally, that goes for everything we do here, the growers lead the way. There's a big group of entrepreneurs gathered here. That's evident from all those innovative initiatives such as Greenpack, geothermal energy, Vitapep, Crick's and Tombons. Those were all devised by growers. There are also a lot of ideas with bell peppers. That's why we recently restarted the innovation club, so we can also be at the forefront in the bell pepper sector."

One concern is investments being slowed down. "Many of our growers have plots next to the greenhouse, where sheep are grazing at the moment, but they're really meant for greenhouses. We talk a lot with banks and other institutions about possible financing. When banks don't invest any more, we have to look for other ways of funding. That possibility exists, because there is enough money in the market. I am convinced that in future, new forms of funding will crop up for our growers", Jelte concludes.

For more information:
Harvest House
Honderdland 415
2676 LV Maasdijk
T +31 (0) 174 519 201 +31 (0) 174 519 201
j.vankammen@harvesthouse.nl 
www.harvesthouse.nl