Things have not been going all that well in the Belgian fruit and vegetable sector for a few years now. Every year sees its peaks and dips. However, in general, a large part of the sector is in serious trouble.
"This is why various growers asked DLV and Meekers - DLV Accountants if we could do something for them. We had a meeting and brainstormed to see if there is a possible solution to this situation”, says Steven Deglin of this Belgian accounting firm.
An idea arose from this brainstorming session with Meekers and DLV. A futures market for the top fruit sector could be a possible solution for its recurring problem.
“We had our first meeting on 18 December. This meeting was with various farmers, traders, and auctioneers. There seems to be interest in the future market plan. The reactions were very positive", adds Jos Houben, also from Meekers - DLV Accountants.
"It is, however, quite understandable that any initiative gives hopes in a bad situation. Everyone is sure that something must come of it. However, it is uncertain as to whether this will be the eventual solution."
“If the futures market plan moves ahead, we will test it on with the pear market first. This market is comparable to the potato market. It also has high volume sales. This product will, therefore, be the most suited to be the test subject."
If a futures market is put in place in Belgium for fruit and vegetables, it will be a world first. "It is the intention that the Netherlands will participate once this plan has been implemented," Jos continues.
"These markets have a lot in common and partially overlap. We have, however, only spoken to parties in Belgium. The cooperation of the auction houses is necessary as auctions must remain. With a futures market, you always still need to be able to end up with a spot market."
“The next step in the process is to approach more parties and gauge their reaction. It is still uncertain, but a solution must be found. The current situation is no longer feasible for certain parties", concludes Steven.
For more information:
Meekers - DLV Accountants
+32 (0) 11 480 980
United Experts (DLV)
+32 (0) 11 609 060