“We can easily sell our product on the British market”

After having worked for various vegetable exporters, Leo Vermeulen chose to be an independent entrepreneur in 2004. The horse stables behind his house were converted into an office space, where he and his sons Martijn and Stephan provide the packers for British retail with greenhouse vegetables under the name Dutch Salads. Although Brexit was an unexpected blow, he is facing the future with confidence. “I’m not too worried. I can easily sell the product I have at my disposal. We do not want to expand considerably in volume, because it would be at the expense of the service to our customers.”

Dutch Salads buys tomatoes, bell peppers and cucumbers based on the season, week and day, from Dutch cultivators. “We permanently work with various horticulturalists, and additionally, we buy from well-known sales organisations. During the winter period, we buy additional product in Spain and Israel,” Leo says. The Dutch season is only scantily starting because of the lack of hours of sunshine. “Our customers are really waiting for it, especially the coloured bell peppers are still very limited.”

Leo provides his British customers with the complete greenhouse vegetable assortment, and proactively searches for novelties for that. “For example, we have about 30 strain experiments at bell pepper cultivator Personal Vision in Bleiswijk, where our British customers go to have a look at the products. Furthermore, we are currently researching whether we can also provide our customers with organic greenhouse vegetables.”

Brexit

The Brexit announced last year also came as a surprise to Leo. “No one in the UK expected it either. The day before the Brexit, the pound was still at its highest point of 2016. The majority of Brits were against the Brexit as well, but they didn’t vote. With similar prices, our vegetables have become about 20% more expensive because of the lower pound, and that makes everything more difficult. Fortunately, we covered our currency risks 100 per cent, or it would have cost us a lot of money.”

The grapes were also sour for the British packers. “They often received a slightly higher price, but it wasn’t enough to cover the gap. You now also notice people are trying to find other ways. Some retailers buy directly in the Netherlands,” Leo says. “I was surprised that many British people are convinced Brexit will not be bad for the country in the long term. They kind of feel like their own bosses a bit more. I personally think consequences won’t be too bad. People still have to eat, and I cannot imagine there really will be a hard Brexit. That will be bad for both Europe and the UK.”

The exporter does not expect British greenhouse vegetables to expand because of this. “The area has been stable for years already. Current projects will undoubtedly continue, but it can take years to get all of your permits in order in the UK. Besides, the cost price of cultivating in the UK is considerably higher than in the Netherlands. If that cost price becomes more in proportion, an expansion will perhaps be a logical result.”

Leo does not think it’s a risk to focus solely on the British market. “If I look at the seasonal agreements I have now, it is still considerable, and I haven’t even looked at the agreements based on days and weeks yet. Our advantage is that we know exactly what the demands from British retail are. We have also taken care of logistics properly, with our company European DLS. I have no wishes to expand either, because that would come at the expense of service. Besides, I would like to stick to the number of colleagues and horticulturalists I’m working with.”

For more information:
Leo Vermeulen
Dutch Salads
Meerweg 49
2651 KR Berkel en Rodenrijs, the Netherlands
Tel: +31 (0)10 51 99 287
leov@europeandls.nl