With an investment fund of 150 million euro, The Greenery wants to boost the restructuring of their members. “We have seen that the scale continues to grow in the sector,” the cooperative says.
The market asks for large, efficient cultivation companies, but Dutch greenhouse horticulture mostly consists of small, outdated greenhouses, especially in the Westland. Restructuring hardly happens. It is less easy for growers to get loans from banks.
Investment fund
The Greenery has also seen these developments. That’s why The Greenery took the initiative to start an investment fund with a possible size of 150 million euro. The Greenery is looking for a minority interest in the fund. “We are currently talking with various regional development companies and other investors,” the sales cooperative confirms reports in the FD.
The fund should start within a year. Through reallocation of land and concentration of strength, new horticultural companies should come into existence. The FD mentions areas of 100 hectares per company. “We have seen that scale continues in the sector. The size isn’t a goal in itself, and the number and size of the horticultural companies to be developed will be geared to developments on the market,” according to The Greenery. Size and location will be considered per application.
Not HOT but Coforta
Restructuring the Dutch greenhouse horticulture is one of the spearheads of coalition HOT. Yet this initiative did not come from a cooperation, but it was initiated by The Greenery. Coforta members from all product groups are allowed to participate. “At first it just concerns Coforta growers, but possible cooperations are not ruled out,” The Greenery says.
Cooperation
With the restructuring of the members, The Greenery doesn’t so much want to shake a fist at the purchasing power of retail, but mainly wants to commit to these customers as a partner for longer periods. “besides the traditional purchasing game, there’s room to optimise the vertical supply chain together, and all links in the chain will benefit financially,” according to the organisation. To that end, they devote themselves to scale, efficiency, category management and product availability. “In such a relationship there’s also a common focus to work at maximum efficiency in fresh produce departments in shops.”