"Importers UK expect a cheap summer"

The strong pound compared to the weak Euro, increases export opportunities to the United Kingdom. "For importers, the European produce is now relatively cheap," says Johan Vrijland of JNV Produce Marketing. On the other hand, the exchange rates are also causing uncertainty. "People are hesitant to sign contracts. UK importers are expecting cheap import this summer. But whether that will come to pass, is still up in the air."

The British greenhouse vegetable season is about to get started. The first British cucumbers are in local supermarkets. "The south of England is normally a bit earlier than we are," says Johan Vrijland of JNV Produce. "On average, a week or two, thanks to the light. That mainly applies to bell peppers, but also to cucumbers." JNV Produce specializes in the British market. Bell peppers are the main product, but the company also carries the other greenhouse vegetables.

Own cultivation
Last year, a number of new greenhouse vegetable projects were realized in the United Kingdom. "Here and there," Vrijland confirms. It's mostly small-scale projects. "Smaller than what people are used to in the Netherlands." More remarkable than those construction projects is the move from greenhouse products to soft fruit. "Strawberries, berries, raspberries. Soft fruit is hot in England, mainly in summer." In addition, British consumers/retailers have an increasing preference for British produce.

Supplying more cheaply
Looking ahead though, it's clear that this season will mainly be influenced by the current level of the pound. For British produce, that means competition, for Dutch produce potentially a bigger market. "We are able to offer the produce competitively, while the contract prices (fundamentally) don't change for the grower. That's an advantage now," says Vrijland. "Or rather, if it had gone the other way, we would have had a real problem now." Because even with the cheap import, Vrijland notices importers are still hesitant.

Retailers
Another important issue in the British market is the situation in the retail sector. Retailers in the middle segment are under pressure. Discounters are gaining ground. In the top segment, it's also going rather well. "You're getting upward and downward pressure," Vrijland confirms. "And that means the middle segment is moving. Consumers are still going to the stores, but for specific products they're going to discounters." This trend also influences the fresh produce sector. It could possibly even offer opportunities for Dutch produce. "British produce is still preferred," Vrijland concludes. "And chain stores pay a premium for it. But because of the pressure from the discounters, it's not as it used to be. The price pressure is high."

For more information:
JNV Produce Marketing b.v.
"Fresh Focus for the UK"
Honderdland 242
2676 LV Maasdijk
The Netherlands
Sales
Tel: 0031 174241400
Fax: 0031 174244942
sales@jnvproduce.nl