Is there a future for the onion commissioner? This is the question we asked Lourens Krijger, whose commission company Krijger Uienhandel was founded 60 years ago this year, and Jaap Simonse, who was a buyer at a large chips factory for ten years and at an onion processor for six years before he switched to the commissioner's branch in 2012, under the name of Simonions.
Looking back on the differences in the commissioner’s trade then and now, Lourens says: “A major difference between the past and now is the increase in scale. While my father Bram visited growers with small cells of onions of just 20 tonnes in 1960, my son Bram now visits growers with sometimes more than 2,500 tonnes. The number of onion growers has decreased considerably because of the aforementioned increase in scale, and the onions have become an important part of the building plan. In the past, it was considered more of a gamble. We always worked from the Noordoostpolder, but since Bram became a third-generation representative around 2006, we also gained some interest in the rest of the Netherlands. But the Noordoostpolder remains our main area of activity.”
“In the past, many growers had a small area of onions — sometimes only 0.5 hectares — a fair amount of which was traded directly from the fields. In those days, the onions were mostly delivered in burlap bags and later in crates before loose shipping came into the picture. At the time, Germany was a major and deciding customer, but they slowly disappeared into the background because of their own cultivation. Nowadays, the Dutch onion is sent almost all over the world. In the early years, the onion season was as good as finished by late April or mid May. Later, the seasons became longer, partly because of the use of MH30, although I wouldn’t know when this was first introduced. Nowadays, the seed and plant onions overlap.”
Room on the market
According to Jaap, who covers all northern cultivation areas, there is definitely room for commissioners on the market. “On the one hand, a change can be seen from larger onion sorting companies to do their own buying with their own people, but others have the vision of buying their trade, or part of it, using commissioners. I estimate there are no more than twenty commissioners in the Netherlands, who mainly focus on onions. Considering the increased cultivation area and the significantly increased processing capacity associated with that, room should be made for it on the market.”
The principal part of Simonions is the commission trade in onions, but he also does potatoes, seedlings and first-year plant onions. “I try to profit from the width of the market. In the potato sector, free trade is very limited, but when I find a nice batch of chips or export potatoes, things would have to go weirdly for me not to find a buyer for them. The benefit is that when you have a relationship based on trust with your buyers, they don’t begrudge you anything. The only condition is that you are loyal, you do a good job and you supply good products.”
Long-term relationships
“Up till a few years ago, we stored mother onions for the seed crop from De Groot en Slot, and from the mid 1960s to early 2000 we also contracted these. Besides onions and onion seeds, we also trade out first-year plant onions,” says Lourens. “The advantage for a grower to work with a commissioner, is that they know the quality of the product and can find a suitable customer for it. The same is true for the buyer, so that he knows what to expect from the onions and won’t be surprised. We therefore greatly value long-term relationships with both growers and customers.”
“When a sorting company needs to buy a large volume in the short term and only wants to do so using their own people, they don’t always make it easy for themselves,” Jaap confirms. “I think it's much easier to buy from trade, because commissioners often constantly have trade available. That is also pleasant for growers. While a processor sometimes isn’t even on the market, that doesn’t often happen with commissioners. My advantage is that, besides the benefits, I also know the limitations of my own purchasing. My advice is: don’t think in contradictions. Individual purchasing and purchasing through a commissioner don’t necessarily have to rule each other out but can actually complement each other.”
Jaap is happy he made the switch to the commissioner’s trade. “I have a loyal customer base. I have a new customer at least once a year. The number of new suppliers is also growing steadily. Regarding that, I rely on word-of-mouth advertising. That is by far the best advertising. As a commissioner, you can be distinctive with the constant supply in your ‘shop.’ It is also important that the customer gets the onions he wants in the end. A grower who links to only one customer obstructs himself if the buyer in question has too much stock. In addition, a commissioner can be distinctive towards the growers with their expertise, and growers shouldn’t begrudge you the trade either. A year like this is a difficult year for growers, processors and trade. In years like this you have to survive, and in good years you have to make a profit. However, I sometimes worry about the narrow margin between purchasing and selling price. I sometimes wonder how the processors will keep that up.”
Jaap certainly isn’t worried about the mutual competition between the commissioners. “Of course, you’re in each other’s way sometimes, but it doesn’t bother me too much. Your strength must come from the trust relationship with your supplier. If that is all right, your supplier won’t just start doing business with someone else for a slightly lower price. Of course, you have to pay a price in conformity with the market, but if you are loyal to suppliers, they’ll be loyal to you as well. I strive for careful sales of onions, good supervision of closed transactions, smooth settlement with all parties involved, a no-nonsense mentality, but especially doing business pleasantly. And of course you shouldn’t forget to have fun in your job.”
Lourens also doesn’t think the commissioner’s trade will disappear. “I can’t say how many onion commissioners there currently are, and I can’t predict the future, but despite the changes in the past 60 years, there will always be work for a commissioner who does a good job.”
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Jaap Simonse