'Things can change quickly,’ the Dutch poet Brederoo once wrote. That applies to the chicory market, too. "When we started our cooperative two years ago, the market price was around €0.50 per kilo. Now chicory has been auctioned in Belgium at between €2 and €2.50 for some time," begins Jürgen Ratelband, Retail Key Account Manager at Tolpoort Vegetables.
Danny Duijs and Jurgen Ratelband, Tolpoort Vegetables
"Things have, indeed, changed considerably. A couple of years ago, there was a surplus of chicory roots on the market; this year, there's a shortage. Many were uprooted late, until the second half of December, and plenty are still in the ground in Belgium. So this year, we'll have to anticipate quieter periods far more by harvesting less and balancing supply and demand to spread the product across the year."
"Early this year, there was also a fire at a cooling and refrigeration company in the Netherlands. Dutch, Belgian, and German roots were stored there. That, too, will affect the overall supply. In other years, it was fairly easy to buy extra chicory roots, but they're scarce now. Plus, those that are available are of uncertain quality. They've been in the ground for quite a long time now. Still, we cannot complain about the current supply (Jan. 11). There were slightly fewer products in the first week of the year because one of our growers was installing a new processing line. But, at present, we can serve our customers reasonably well," Jürgen says.
A Buffer
"We don't expect the market situation to change dramatically any time soon. There are, after all, fewer roots, and demand is good. Other vegetables being tight and high priced partly stimulate that. That benefits chicory growers, though they also desperately need these prices. Eighteen months ago, cultivation was still far below cost. These prices are badly needed to compensate for the lesser years and build a buffer for the future. Plus, chicory root prices have almost doubled in recent years, partly due to government policy (CAP), which makes less land available for cultivation. The sector's labor costs keep rising, too, and since chicory is a labor-intensive crop, that adds up considerably."
"We're exporting a lot at the moment, especially to Italy. At other times, some markets would drop out at certain price levels, but so far, that's not happening. Even with these exports, demand continues to flow well. However, it will be tougher to fill promotions this year, particularly with the larger retailers. These promotions often raise sales two or three times, and we can't absorb that now. Also, this year's chicory is much larger than last year's, which is another limiting factor for what you can do, volume-wise. So promotions will be done much more based on availability because we've strategically spread the roots throughout the year," says Ratelband.
With red chicory, Tolpoort Vegetables has a niche product. "This remains an erratic market. In December, prices surged tremendously, and the product was selling for €35/box. Growers could make €10 per kg. But we also had weeks when the kilogram price was around €1. We started this year with good prices, but how the market will develop remains to be seen. We have a little less red chicory available."
Campaign
Like most chicory packers, Tolpoort Vegetables is, as a market leader, participating in the 'En óf je witlof lust' (Do you like chicory) chicory campaign. "Chicory must return to the top 10 vegetables bought in the supermarket. We've set aside five years for that with this campaign. You can't change consumer behavior in just a few months. We especially want to reach the 35+ target group, i.e., young families. We want to get them enthusiastic about this vegetable's versatility," Jürgen concludes.
Jürgen Ratelband
jratelband@tolpoort.com
Tolport Vegetables
Tel: +31 (0)228 56 57 81
verkoop@tolpoort.com