Europe Retail Packing BV of Poeldijk, Holland foretells that the entire industry is destined to face difficulties of historic magnitudes caused by both Covid and War in Ukraine. “The Herbal Sector is profoundly based on the Globalization notion that is unfortunately being questioned by forces beyond anyone’s control,” stated Omer Kamp of ERP.
The toll for coping with two years of the Covid19 pandemic is only now becoming apparent with logistical deficiencies, ongoing price increments and ridiculously high inflation rates. As if that’s not enough and to add more wood to the fire, the raging war in Ukraine has thus far accelerated these complications, introduced new ones and sent the entire market into a roller-coaster ride of instabilities and inconsistencies. “It goes without saying therefore that the need for swift, immediate and decisive trade alterations are required to overcome this current wave of ill-fated realities,” claimed by Raymond Van Der Burgh.
African Herbs which have earned the reputation of being accessible, suitable and affordable are now tackling the reality of limited cargo flights, significant price increases and a longer lead-time for deliveries. From Israel on the other hand, currency devaluations alongside Crude Oil exceeding the 120$ a barrel are creating obstacles of inevitable price hikes and/or a trade-off on qualities. Moreover, local EU production is under pressure with natural gas prices reaching new heights and raw materials such as packing paper / plastic becoming harder to obtain.
“One way or another, the Fresh Herbs Industry has no choice other adjusting itself to this new World Order by providing a marginal value that would complement the market’s unfortunate developments,” said Omer Kamp.
The Dutch based company has therefore decided to approach these predicaments with a somewhat novel methodology that entails expansion rather than contraction. “Our clients can enjoy a steady and daily supply of consolidated Herbs from all corners of the world without the need to assume risks. We can comply with same day orders and provide an extensive selection of the entire Herbs’ family”, stated Joella Steenbergen.
Aside from that and especially in the midst of this unstable period, the company finds it imperative to share objective and relevant information with clients so there won’t be any surprises or downfalls. To do so properly and effectively, daily newsletters regarding Fresh Herbs are being sent out to anyone at the company’s mailing list. These updates include vital information on availabilities, price changes, prospects, qualities and instances threatening to effect trade.
According to ERP, despite everything taking place around us, the level of demand remains solid and even rises with positive forecasts for the upcoming period. Covid restrictions have, nearly entirely, been lifted and consumers are once again taking joy in Social Gatherings. Likewise Weather conditions have improved with Easter lurking around the corner so yes, without any question in mind, in a matter of few days we will come across more local yields accompanied by a major consumption increase in the Horeca Sector.
Our Dutch Glasshouses have begun harvesting Coriander, Dill and Chervil with Thyme, Melissa, Basil and Tarragon coming along shortly. In Spain, even with the sporadic strikes, supply is fluent and plentiful with Mint, Coriander, Dill, Parsley etc… In some areas such as Poland, Germany and Southern France, even Chives are being harvested alongside a continuous steady supply deriving from Jordan River of Ethiopia.
The company continues by stating that amid adequate supplies, there are still aspects to consider in relation to qualities. Climatic conditions during this time of year are less ideal for some lines such as Basil. Temperatures are not too high nor are they too cold and humidity remains excessive. Consequently and unfortunately, the risk for fields being infected by fungi related diseases is higher than ever. Botrytis and Mildew will spread unless treated properly and hence, the need for more dedicated inspections is required and deemed necessarily.
“In most cases we have taken upon ourselves the task of providing a photographed QC report prior to departures so we could avoid any surprises. “Our clients can rely on getting genuine information instead of wanted information while the difference between the two is imperative for any long-lasting continuation. Neither we nor our clients can afford disappointing our patrons and hence, transparency is one of the marginal values our clients can take advantage of,” claimed Omer Kamp.
Another point worthy of attention is that due to international sanctions on Russia levied by the EU, America and other states from the Western Alliance, regarding the exportation of goods, will have dire consequences on the market. On the one hand, some companies could find it hard to retrieve payments for shipped goods while on the other hand, these companies will now need to divert their Herbs to mainland Europe.
This course of action could result in an over-flooded market with new players infiltrating an already saturated market. Nevertheless and while taking into consideration these vast market changes, Europe Retail Packing BV strongly and with high conviction believes that transforming from a Good Company into a Great Company is no longer a question of choosing but rather a necessity and an inevitable obligation.
“Despite a pandemic, a war and economical instabilities, our task and commitment towards the continuity and success of the industry must be defined in the most devoted manner possible. It is up to us to make threats into opportunities,” concluded Wessel Prinns of ERP.