"I would describe the fiscal year 2023 as satisfactory to very good," says Lorenz Boll, Managing Director of OGS Obst- und Gemüsevertrieb Südbaden. "The cultivation of summer products, namely strawberries, cherries and asparagus, has increased in our company. The farms have invested more, especially in new and stable varieties. This also reflects a trust that the farms have in us. Thanks to our good customers and the excellent performance of our employees, we were able to record increases in sales this year." He expects a sales increase of over 25 percent.
Support from the food retail trade
"All supplier invoices have been paid and all our customers are satisfied. At the same time, one must also be aware of the circumstances under which the year began. The market was characterized by a reluctance to buy and a significant increase in the cost of production resources. In recent days, the perception and respect on the part of politicians for agriculture, which stands for healthy, sustainable, and independent supply, leaves much to be desired. What gave us a positive surprise, however, is that the German food retail trade has strongly supported us," says Boll.
"Of course, we must pay attention to the consequences of climate change. Accordingly, tree cultures are required that bloom later, require less water and are heat-resistant. I know that nurseries are already working on solutions for existing and future problems. In addition, another challenge is to find and retain good staff who are willing to work above average during the summer months. However, we cannot complain about the current situation."
Boll, on the other hand, showed a lack of understanding towards politics: "First subsidies are approved and then withdrawn or certain plant protection products are allowed and then banned again. If I were to deal with my customers like this, I would have none left in the end. We should actually be able to expect a minimum level of reliability from our politics. After all, this is also expected of us as soon as the tax payments are due."
Trust and reliability through young producers
Asparagus is one of OGS's top products. "The volumes are constant, but old plants are being replanted. In addition to this, producers from Baden-Württemberg, who are not part of the cooperative, repeatedly approach us wanting to market their goods through us, for asparagus, strawberries, cherries and plums." OGS sources goods from a total of 140 farms. "What pleases me is that many young entrepreneurs and producers are also cooperating with us. These are producers who are very familiar with the market and know what the prices and parameters in the food retail trade are. They are constantly training and informing themselves about new market developments and what can be improved. This creates trust and reliability." About 1000 tons of cherries were harvested this year, with an annually increasing trend.
Originally, an below-average cherry harvest was expected, but it turned out to be an average harvest with outstanding qualities. "As mentioned, new varieties were cultivated that are characterized by a long shelf life and a suitable size and appearance. Here I must also praise the German food retail trade, which listed the product and marketed it at an adequate price. The German consumer reacted positively to the goods."
The food retail trade is also aware of the increased production costs and the competitive disadvantage compared to imported goods, especially with regard to the minimum wage. "However, the producers tell us that this can only be the beginning. Because in view of the toll increase, CO₂ tax, and other factors, they are still faced with high costs. Furthermore, the situation from the consumer's perspective must also be taken into account. We sell good and healthy products, but in view of the declining net income in the population, consumers must be able to afford them."
Focus on Germany, good exports
The focus of OGS clearly lies on the marketing of Baden products, while also selling goods from Germany as a supplement. In addition, products such as plums from Eastern Europe are also purchased. "Customers who buy goods from us throughout the entire German plum season also like to add plums and other products from Eastern Europe, which also shine with good qualities." The core competence of OGS lies in German production and also in marketing within the Baden food retail trade. In addition to the German market, France is also supplied with asparagus, strawberries, cherries, and plums. "They are not huge quantities, but you should not neglect the market." The Benelux countries as well as Denmark and Scandinavia are also partly supplied with OGS goods.
"We are planning investments in a photovoltaic system and new packaging plants for 2024. We have already signaled to our customers that we will expand our packaging services. I am thinking of top seal and 1 kg to 1.5 kg machines. There is also the consideration of setting up packaging machines at some large producers to increase our impact."
For more information:
Lorenz Boll
OGS Obst- und Gemüsevertrieb Südbaden GmbH
Niederrotweil 80
79235 Vogtsburg
Tel.: +49 (0) 7662 9300 0
Fax: +49 (0) 7662 9300 93
Email: info@ogs-suedbaden.de
Internet: www.ogs-suedbaden.de