The prices on the fleshy vegetable market are mediocre to bad at the moment. The dip is characteristic for this time of year according to Jesper van Oostende, when both Southern Europe and the Netherlands are on the market. What is more concerning is the expansion of the production in the Dutch market.
Courgette crisis
One thing is for sure, 2017 will not be a boring fleshy vegetable year. The market has already seen considerable peaks and dips. "As a result of the extreme weather conditions in Southern Europe this year started with shortages in all vegetables - the courgette crisis," says Jesper. "The quality was difficult, especially in import, and the availability was mixed. In the end it could even be felt in the retail: not all products were available and the prices went up. This is certainly exceptional."
Growers who wanted to profit from this at the start of the Dutch season, were sorely disappointed. "The prices were high and partially due to the retailers the consumer started looking for alternatives such as conserves, frozen and even stewing vegetables. The demand dropped out, right when the Southern European and the Dutch production got going. Aubergine and courgette in particular had a bad start. Other fleshy vegetables have also had problems. Whether anyone has profited? Maybe some traders, but in the end this benefits no one."
"We have a long way to go," says Jesper. It was very light for the first three weeks of January in the Netherlands. "The lights then went off for a few weeks. Courgettes responded well to this, they came into production early and were even slightly ahead. The production of peppers is starting now and are equal to last year. Tomatoes are quite behind. We are waiting for them." Partially due to this there were quite good, high prices realised in the spring. "But the turnover was limited for the growers due to the lack of kilos. There just wasn't much production. You know the kilos will arrive at some point in the season."
Retail
At the moment the tomato supply is in full swing. "This traditionally happens from the start of May. We are used to working with a large supply in these weeks and are acting on this. But at the moment we see that the Dutch production is peaking and the backlogs are being made up for, we are also seeing that Southern Europe is playing a larger role than expected." Retail plays an important role in this. "This is the moment that they switch to Dutch product. This hasn't happened everywhere yet." This situation has big consequences for the ratio of demand and supply - to the detriment of the Netherlands. The changing spring weather throughout Europe hasn't helped raise consumption. It is resulting in mediocre to bad prices for the fleshy vegetable market. "It will improve a bit when all retailers switch. This is happening later than we're used to."
Exciting year
No conclusion can be drawn for the entire season yet, but the expansion of area in the market is causing tensions. "In recent years there have been problems in the European production horticulture every year," says Jesper. "In recent years a number of segments within vegetables have done well and the economic conditions have improved. You can see a number of expansions taking place and you doubt some of them have a good plan behind them. There is a chance that some segments will be overrun." He uses the snack segment, plum tomatoes, as an example. "The market has been growing for years, but we are now seeing such an explosive growth in area that you wonder whether it is sustainable. The new varieties also supply more production every year, so more kilos are harvested from the same area. This development continues."
The Greenery team knows how to deal with this well. "By collaborating with customers and growers we making sure we produce what the customer is demanding. We call it Perfect Fit. With this we can create added value in the chain even under difficult market conditions. In certain periods you have to deal with European overproduction. You can't escape it. But the customer has to be kept in mind with what you place on the market as an organisation or we're all losers."
For more information:
The Greenery
Tel: 0031 (0) 180- 656715
Mob: 0031 (0) 6-10307111
J.vanOostende@TheGreenery.com
www.theGreenery.com