Revenue decline at REO Veiling due to leeks

2013 was a record year for REO Veiling, but 2014 fell short. "The first half of the year was worse than the second half," said director Paul Demyttenaere. "We ended 2014 with a turnover of 135.7 million Euro, 13% less than 2013. The main cause of lost sales was the leek: it was a disaster year for this product. Due to the warmer weather last winter the demand for leek was extremely low, and on the other hand, production was extremely high. The Russian boycott also effected this product in the second half of last year. Tomatoes, cucumbers and zucchinis all had a pretty good autumn at REO Veiling, even with disappointing vegetable production levels in Europe."

In 2014, tomatoes made up most of REO Veiling's products. In 2013, this was still leeks. "In regards to sales, the top 5 products are very close to each other," says Paul. The big five are: tomatoes, mushrooms, leeks, lettuce and chicory." In regards to land there are some significant issues. "Greenhouse lettuce saw a 7% decrease in land, but that was taken over by rooted mixed lettuce. Products that saw growth include: strawberries, freshly cut and packaged products and organic vegetables. In 2014, sales of organically produced products were around 2.6 million Euro, four times as much as 2013."

Other important business for REO Veiling in 2014 included the quality brands Tomabel and Fine Fleur, which will continue to be worked on in 2015. "Despite a difficult market situation, we have seen good growth in both domestic markets, and we are delighted about it. Belgian consumers are looking for quality products and they are prepared to pay for them. In France we have achieved growth in the sales of Tomabel products by more than 55%."

New Year

The new year has just begun. "It is too soon to draw a conclusion about the outcome of the leek season. We noticed that the cold front had an effect on the end of 2014. For 2015, we see growth in horticulture. We will also be expanding the French market, and assuring sales of French products from our producers. We'll have our hands full!"