"Prices for large carrots keep climbing; stored carrots reaching their end"

The trade in carrots is going well. Prices have shown an upward trend since March. The new harvest is slowly becoming available. This is good for the price development. This is according to Kees Heegsma of the Dutch company with the same name. However, there is a limit to what consumers are willing to pay. "When consumer prices get above the euro-mark, you will notice a decline in consumption. Retailers also plan fewer promotions involving carrots. This causes people to lose interest in this product", says Kees. "I, therefore, expect the recent price hikes in the consumer market to draw to a close. The quality of the stored carrots is also declining. Processors need high volumes. These are not, currently, available from the new harvest."

Carrot acreage in Spain, of which less was planted this year

Shortage of carrots

A culmination of events has led to a current lack of carrots on the market. Dutch carrot farmers can, therefore, make up their losses again. "It is a completely different situation to last year", says Kees. "Then we were left with batches of carrots. This year, from January to March, we had normal price levels. After that, the market really got going. There were a number of weather-related incidents. These occurred during the 2017 harvest as well as in the new growing season. This combination of circumstances resulted in a high demand for Dutch stored carrots. Some Dutch growers still have good quality carrots in storage. They can make up the losses they suffered last year. There are also farmers who had to get rid of their carrots early. This was due to quality issues. It is unfortunate for them that the prices are only increasing now."

Lower yields of new carrots

The consumer market is on the lookout for new carrots. They do, however, still need to largely make do with the stored ones. Spain is not sending much of their new harvest. "They sowed 20 - 30% less this year. The heavy rainfall experienced at the start of the year also stunted the carrots' growth. There is probably 50% less availability than is usual for this time of year", he says. "This is why Isreal has started up again. For a long time, they have not been active with conventional carrots on the German market. We can keep getting supplies from Spain until the end of next week. Then we will switch to the French product. Here, yields are, however, also lower than normal. Dutch new carrots will become available in week 26."

Long-term

Patching the holes works for this year. However, is it sustainable in the long term? "Look at sales in recent years. You will notice a downward trend on the German market. German retailers demand regional products. You can also see the development in other countries. In my opinion, this development is based on socially-fed emotions. This is all good-and-well as long as there is sufficient regional product. Once the availability is lacking, this idea goes out the window", explains Kees.

Regional trumps quality

The Netherlands distinguishes itself by supplying good quality products. Here, the use of pesticides is also limited. "When it comes to the use of pesticides, every country in Europe sings to its own tune. The Netherlands has a good reputation. They are pioneers in this area, also when it comes to carrots. It would, however, seem that retailers prefer regional products over quality," concludes Kees.

For more information:
Heegsma BV

Kees Heegsma

74 Straatweg
8531 PZ Lemmer
Tel +31 (0) 514 569 224
Fax +31 (0) 514 569 397
Mob + 31 (0) 653 244 828
E-mail info@heegsmabv.nl
W www.heegsmabv.nl