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Maas van den Heuvel, LNCN:
“Organic carrot prices have strong rates”
Organic carrots have had strong sales, according to figures from LNCN (Agricultural exchange North and Central Netherlands). The conventional carrot market, however, is in a slump. In week 10, the price decreased further. Before that, the index was higher due to buyers in Germany, where prices for carrots are better, around 20 euro on average, according to Maas van den Heuvel, secretary of the LNCN. The trade in Germany dropped in week 9, causing prices to decrease. Maas: “The low carrot price is disastrous.”
Organic market finished
Ronald Gielleit from Top Fresh confirms that the organic market for carrots is doing much better. “Prices are definitely good compared to the conventional market.” The market for organic carrots finished last week. Ronald: “The final carrots have just been exported. We are now starting with imports from Israel and Spain.” Ronald has noticed a trend for expanding the area. “Many cultivators are switching to organic cultivation, both in carrots and onions. The export market for those products is still good. Only a small volume is sold in the Netherlands, almost the entire production is meant for Germany.”
Switch
A switch to organic cultivation might seem sensible, but it's not easy. Kees Heegsma from Heegsma has been in the carrot trade for years, and immediately comments: “It is not just an economic story, the entire operational management has to be changed. In organic carrots, you are mostly dealing with the international market, which is much smaller than the conventional one. Moreover, it is impossible to guess how much product that market can absorb.”
Ray of hope
Right now, there is still much conventional product left, and the first organic carrots from Israel have arrived on the market by now. “The Netherlands has always been very flexible, and has good quality and storage facilities. With that, we can fill the gaps on the market,” says Kees. That the Netherlands is now left with the stocks, is because of a combination of factors. Kees: “There’s the Russian boycott, of course. Besides, Poland is becoming increasingly self-sufficient due to European subsidies. Germany is a large market, but emotional sentiments play their parts on that market, supermarkets devote themselves to the sales of regional markets there. And finally, the current low price means processing plants are not forming stocks, which also pressures the market a bit. If a small miracle doesn’t happen soon, the entire carrot sector will feel the 2016/17 season, financially, that’s how realistic we have to be.”
But according to Kees we don’t have to be gloomy about everything. “We are getting some demand from Bulgaria, Croatia and Spain. Until a week ago, we hadn’t heard anything form these countries.”
For more information: LNCN secretariaat Maas van den Heuvel m.v.d.heuvel@hetnet.nl T: +31 (0)38 33 88 214
Top Fresh Handel Ronald Gielleit Zuiderringweg 21 8317 RA Kraggenburg T: +31 (0)31 527 745 043 info@topfresh.nl www.topfresh.nl
