This year, the German outdoor harvest took place about a week earlier than last year. Thanks to favorable weather conditions, most crops grew relatively smoothly and yielded high harvests. This contributed to the corresponding decline in prices. "It is noteworthy that the northern regions only began harvesting slightly later than the southern German growing areas. This led to overproduction, which was further exacerbated by delayed planting in Spain, where rain prevented planting at the usual time," says Rudolf Behr, Managing Director of BEHR AG, looking back.
To make matters worse, a young plant company went bankrupt, and the security of supply remained unclear during the insolvency proceedings, Behr continues. "We reacted accordingly and reordered the supposed shortfall from other young plant companies. In the end, however, the insolvent company delivered anyway, which in turn led to duplication. These factors shaped the start of the season, with very low prices, below production costs, and left a massive hole in the producer's finances. It turned out that retailers were not sufficiently aware of production costs and that the pressure of volume was used to market advantage. Unfortunately, the low prices are still considered normal today."
Rudolf and his daughter Christine Behr celebrated the 130th anniversary of their family business at this year's Fruit Logistica.
Existential fears lead to higher producer prices
Behr, who grows around 4,000 hectares of vegetables in the open field, also points to the 'relentless competition' from food retailers. "It turned out that they have no idea about production costs, know how to exploit volume pressure in a market economy, and still consider the low prices to be normal. This will only improve when supplies become tight, which is sure to happen. Then, out of sheer fear for their survival, producers will demand exorbitant prices, as the need will be so great that without very high prices, it could cost them their livelihoods."
Organic farming is developing calmly
According to BEHR AG, there are currently no signs of drastic changes in the area under cultivation. "Apart from the normal structural change, in which farms that cease operations are compensated by existing structures, we do not see any significant developments. In line with the overall trend, organic farming is developing calmly. Supermarkets and discounters have taken the lead in the organic market and are operating in their usual manner. In our opinion, however, this has little in common with the old organic philosophy."
Over the past decades, BEHR AG has continuously enhanced the vegetable shelf with numerous new products and concepts. "We are and will remain product developers. We have many products and cultivation methods ahead of us that will challenge us greatly. This also applies to cultivation technology. One thing we can say with certainty: the pace of innovation must increase significantly if we want to remain at the top," concludes Behr.
For more information:
BEHR AG
Ohlendorfer Str. 83
21220 Seevetal - Ohlendorf
Phone: +49 (0) 4185 - 79 77 20
E-mail: [email protected]
Internet: www.behr-ag.com