NGOs and retailers leave their marks on Dutch carrot market

LNCN chairman Mark Brantjes first explained how the share price index for Emmeloord B-carrot dropped from 10 to 8 in week 10. Quite a number of questioners asked about that. It was to do with the German market, where carrot prices were much higher. “The index is established through transactions made, and we do not play a guiding part in that. Price levels were therefore much lower in week 10,” Mark said.

Speaker Joris Baecke, chairman of the LTO working group, Plant Health, further examined the influence of NGOs on the requirements put to the market. Despite good consultation, AH and Jumbo changed their minds and wanted to ban 28 substances in the summer of 2016, under the influence of Greenpeace’s radio commercials. “Thanks to further negotiations, realism returned to them, but the tone for intensification has been set,” Joris said. “We have to do more, and draft a long-term ambition. Not just show how good we are, but also start the movement towards fewer pesticides.”

The export and the image of the Netherlands in that is of great importance. Yesterday, the Dutch elections were held, and the new cabinet will immediately be asked for support in order to make the Netherlands the undisputed leader in healthy and sustainable production by 2030. “We have to start approaching it as a robust system. That means less focus on repairing (pesticides) and putting the healthy plant centre-stage.” There is an opportunity, because much knowledge and skill is currently shelved, just waiting to be applied. But that needs a more tolerant government policy. Investment-wise, the plans mean one billion euro in means, 750 million should come from private parties, and 250 million will be asked of the new cabinet. “With it, we strengthen our export position, and get the international attention and admiration we deserve.”

Cees Leijten from Bakker Barendrecht presented the close ties that were established between Albert Heijn and one of the largest fruit and vegetable companies of the Netherlands. In it, trade has been completely replaced with cooperation in the supply chain, in which the partners try to tame the whims of the market together. “We already know where the carrot will be cultivated and what will be sold next year,” Cees said. “When there is a large supply, AH can use promotions, increasing sales up to six times compared to regular weeks.”

Bakker Barendrecht poses as CO maker, which means that they think along with Albert Heijn’s strategy in the field of fruit and vegetables. He even said that Albert Heijn is leading compared to other supermarkets thanks to Bakker Barendrecht. They dedicate themselves to product improvement by offering distinctive and exclusive strains, Merano and Magnum, as A brands. It is possible to have volumes rise 10 to 15 per cent in sales via category management.

Bakker Barendrecht also dedicates itself to a transparent supply chain. Consumers want health, convenience, enjoyment and doing well. “It does not matter whether the pointing finger is right or not, we have to anticipate pushing back pesticides, because Albert Heijn does not want a bad image,” Cees said. That is why they are talking to cultivators about phasing out or regulating 28 substances, cultivators have to meet ecolabel standards, and a further focus on organic cultivation.

That a good marketing strategy can boost the sales of carrots, was illustrated by Cees on the basis of figures. The total category of winter carrot rose by three per cent in 2016. Within all supermarkets, Albert Heijn excluded, the share is two per cent. Albert Heijn performs considerably better than the market in that respect, the total winter carrot category increased by at least 12 per cent. That is because winter carrot is not just sold loose or in bags, but also in ever-more popular vegetable mix-packs and the AH’s meal box. Even the outsiders, carrots with an anomalous shape, can be marketed with good marketing. “It is a small article, but it puts the winter carrot category in a more positive light.”