In the Netherlands, FruitMasters and Nautilus partnered around organic produce, limited to a supply platform. Then, a year ago, BioMasters continued as a 100% FruitMasters subsidiary to connect organic and biodynamic fruit supply and demand. And there is ample demand, notes Business Unit Manager Peter van der Schoot.
Peter van der Schoot
"Every (retailer) partner has a target for organic, and since FruitMasters supplies conventional fruit to almost all European retailers, they ask if we have organic products available, too. With BioMasters, we can use all FruitMasters' quality, continuity, and packaging development USPs for the organic category as well. The market, food service, and retail sectors, thus, have a one-stop shop for ordering," Peter begins.
BioMasters serves the market from a dedicated organic sorting facility in the Netherlands. With an annual capacity of five million kilos of fruit, it got off to a flying start to further expand the organic category. Primeur spoke to Peter about, among other things, how that growth is being fleshed out, the role of efficiency in the chain, the importance of research, and changing consumer preferences.
Organic acreage in the Netherlands is not expanding rapidly. Earlier, you indicated that you also need growers to meet client demand well. How is it going with organic farming?
"The sector currently finds itself in a fragmented and just too small situation, so unnecessary chain activities lead to plenty of costs. To make the organic chain more efficient, you need more volume. Achieving that efficiency improves growers' revenue models, while currently, growers fit the bill for much of that efficiency. That's our dilemma: You must invest to improve growers' earning models. We're doing that at FruitMasters."
"We already know a lot about logistics, efficiency, and cultivation development, and we're now using that for organic as well. As BioMasters, we want to encourage the flywheel effect so earnings models improve because there's ample demand. We're also working hard to increase that market demand even further. Then, to have a long-term grower perspective, we must ensure efficiency in the chain."
Can BioMasters provide growers with a guarantee?
"There's such high demand that we can offer growers guaranteed sales and purchase prices, depending on the market segment. Plus, as is common in cooperatives, when more has been earned, we've managed to pay growers a bonus. Last season, we used that guaranteed price to take a position. We were short of fruit and had too much of that from others in the FruitMasters partner network. But, naturally, you prefer developing from your own crop. Because with that, as a grower cooperative, you can keep investing in your members, contributing to product continuity and availability."
"We're a cooperative, so profit isn't our goal. We want to maximize grower returns. Our growers sell directly through us, for which, of course, they pay a fee. But that's not a margin. There's currently huge demand, so we're forced to buy from trading parties. That means growers don't enjoy part of the margin. BioMasters prefers to reward growers better directly."
"The long-term objective is to achieve a positive return for organic growers. BioMasters draws up multi-year plans with its growers. Those include mutual choices and decisions aimed at improving growers' financial returns. We want to offer them good payout prices so they can continue innovating in variety development and optimizing an efficient supply chain. That's how we impact the organic chain on a large scale."
"We're, thus, looking for organic growers who want to commit to our cooperative. They can then keep expanding, possibly with club varieties. Some conventional growers want to convert, too. These are especially young growers wanting long-term prospects. That isn't widespread yet, but we hope it will become more so."
"We want to reduce the scramble for existing acreage. It benefits no one. We want to grow, so we're also fully engaged in developing new varieties. We have several new varieties we already have experience with overseas, and we see plenty of potential. We've also planted Bloss and Tessa, for example, organically. We want to expand and want organic growers to join us for that because the more volume, the more efficient it becomes, and the easier we can grow more. Demand is outpacing our cultivation. That's truly our biggest challenge."
Grower financing is an often-mentioned hurdle; is that different in the organic sector?
"Banks want limited risks. Cooperatives or trading parties providing guarantees create models that banks are willing to consider. The most important thing is that you have a true chain approach. You need all the links for that. If one party does things differently, you won't get anywhere together. That's the paradox in which the organic sector has existed for a very long time. We hope to break through that with our top and soft fruit cooperative."
"Banks are becoming noticeably more receptive to that, as are retailers. If we want an organic market share of 10% by 2030, we need chain cooperation between banks, cooperatives, and retail, and we must get moving now. Parties understand that has to happen."
BioMasters serves clients year-round, and you say you want more volume. How are you meeting demand?
"Our retail strategy states we meet organic fruit demand year-round. We do that with Dutch fruit when available. Otherwise, we get it from as close as possible: France, Germany, and Italy. We try to increase the proportion of Dutch fruit annually, so we can guarantee that too. We now supply Dutch apples until about March. So, there's quite a short period to bridge. We also try our utmost to supply European apples and avoid overseas imports even in the most difficult times - July and August. We manage that by concluding programs and entering into collaborations. Because here, too, it's about the long-term perspective. The free market can't always provide a solution."
Organic and conventional fruit prices still seem to differ. How does that impact the market?
"That price gap should shrink further, but through great chain efficiency, not by squeezing the grower. That decrease could be significant, but that would require the chain to approach costing and margin calculation differently. Organic products are somewhat pricier; if you stick to a percentage margin, the absolute amount becomes higher. If the chain as a whole considers those aspects, I believe growers will, eventually, earn more. That's because everything has become more efficient, and retailers have less of a margin target. You could, thus, achieve a considerably more attractive price difference."
How is the development of organic apple varieties going?
"In that regard, there's no total solution. Many varieties have been introduced in recent years, leaving growers to wonder if they should still plant those or grub the trees already standing because of disease susceptibility and unforeseen challenges. The bottom line is that developing a crop takes a long time and continuous investment in research. You must keep developing structurally because one thing is sure: robust, flavorful apples are the future."
"People want tasty, high-quality apples, so this development will continue. That's why I think, in about a decade, because of climate change, the acreage of existing organic apple varieties will have shrunk, and new varieties, such as Tessa or Bloss, will prevail. We must, thus, invest in research if we want to keep organic apples relevant in the long run. The public likes hard apples."
"That's why we're researching Bloss. We're seeing if we can also grow Tessa organically, which FruitMasters grows conventionally. Santana and Topaz, too, hold their own in organic production. If you want to offer year-round Dutch apples, you need an early and a late variety. Santana is an early apple, which we market in the first half of the season until December. I'm short of these for two months, so we're looking for extra volume in the Netherlands. We sold plenty of Topaz as well. The good thing about both varieties is that they're productive organic apples with 35 - 45 tons per hectare yields. Your business case must be right, too, mustn't it?"
What do you think of club varieties?
"Club varieties have the advantage of having dedicated parties that invest in European research. For instance, for Bloss, we, the Germans and Italians, always did research together, which, of course, helped enormously. In conventional apple growing, many growers often only want to invest in club varieties because they get better returns. If we keep doing enough research, I strongly believe that it will be the same for organic. Especially since it's European research, and plenty of money goes into marketing. That way, you know you're creating consumer preference."
Organic top fruit is cultivated throughout Europe. Do you experience competition from that?
"Less in apples than pears. Dutch people prefer Dutch apples. Europe-wide, Poland is entering the organic market in full, and that's particularly dangerous for pears. Because the season starts slightly later, plenty of those are being sold. It's challenging, so we must keep investing in the correct quality and quality systems to stay ahead regarding performance and specifications."
This article was previously published in Primeur May 2025. Click here for the link to the entire edition
Voor meer informatie:
BioMasters
Peter van der Schoot
+31 (0)6 – 518 058 73
[email protected]
www.bio-masters.nl