Auction clock sales still take centre stage in the day trade at REO Veiling from Roeselare (Belgium). “If only to sell the large volumes logistically at very tight margins and within brief time windows,” says commercial manager Dominiek Keersebilck. This doesn’t mean that the cooperative has been standing still.
Auction clock sales central
Virtually all products that are sold through REO Veiling, come from their own growers. Only in the case of year-round supply agreements, extra produce is bought from abroad. Examples of this are cocktail tomatoes or baby-leaf lettuce. “But that represents only a small fraction of the revenue,” Dominiek says. Of all products, about eighty percent is sold through the clock. REO Veiling prides itself on this, because they believe in a daily price setting for fresh products, and because this allows logistics to be handled at tight margins. “Both this winter in leek, and last summer in cucumbers, the clock was the unique instrument to efficiently translate the tension in the market into a product price. The past year, our leek growers clearly made the most of the market, and our cucumber growers were very satisfied with price settings at auction this summer. Furthermore, the efficiency of the fully automated sales system makes for fast, efficient and correct handling of invoicing, sales and distribution of product flows that change daily. By the way, we are looking for an equally high performing sales system for the long-term sales as well.” REO allows open competition between the buyers, and feels good about this. Dominiek says he appreciates that other auctions, like Veiling Zon, also want to return to the clock for the daily sales.
Improving the identity of the brands
In 2012, REO Veiling turned a new page. Mergers took place at home and abroad, but at the auction in Roeselare, the realization hit that they had to be more active themselves. The brand policy is an important part of that. REO Veiling now carries three brands. Flandria is the standard quality label carried throughout Belgium, but where REO wants to implement focused quality improvement. Fine Fleur is owned by REO Veiling, and represents authenticity and seasonality. Tomabel is a bigger brand with, thanks to the producer members, extra attention to presentation, quality and flexibility. “We still strongly believe in the standard quality of Flandria, because we need to get large volumes through our system efficiently,” Dominiek explains. “Millions of kilos of leek are arriving again in winter, that need to reach the European market. You need a good standard for that. The growers have been made jointly responsible for the product, and that stimulates. In fact, the product should be able to go straight past the selection table. For growers who want to do something extra in terms of service and quality, possibilities are created. A better tasting tomato that gives less kilos is marketed under the Tomabel label. Top quality strawberries and Belgian endive from the field are found at Fine Fleur.”
Changing market approach
An active approach of the fresh market is another focal point within the updated policy vision of REO Veiling. “The arrival of a commercial department was a first step to bridge the gap between the growers and the market. We’re also really looking at the developments that are going on in the market, and how we can respond to that with the help of our growers,” Dominiek explains. “It used to be that decisions, for instance in terms of variety selection, were often taken with production in mind, like yield per hectare and resistance to disease. Now we also look at what could be attractive commercially. The entire approach to the market is different, and we want to further convey that with our members in future. That way we continuously prove that a producer organization is still definitely a contemporary thing. Not everything we do works out, but the will is there.”
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REO
Dominiek Keersebilck
