With approximately 200,000 tons of fruits and vegetables produced on about 15,000 hectares by 100 growers, Pfalzmarkt eG is one of the largest producer cooperatives in Germany. Reinhard Oerther and Hans-Jörg Friedrich, the board members of the cooperative, discussed collaborations in German vegetable cultivation, current trends, and the future of vegetable production in the Palatinate region.
Hans-Jörg Friedrich and Reinhard Oerther
Location advantages and market changes
Approximately 13,000 hectares of the area cultivated in the Palatinate, the vegetable garden of Germany, can be supplied with water as needed throughout the growing season via its own irrigation association. During periods of prolonged drought or extreme summer heat, there may be restrictions on allocation. This unique feature is becoming increasingly important: "Even when it's dry elsewhere, we still have enough water and can ensure the availability of goods with 'Harvest Fresh from the Palatinate'."
Moreover, due to its well and conveniently located site, Pfalzmarkt is a very good partner for the retail trade, according to Oerther. "This partnership is continuously being expanded and optimized. Pfalzmarkt eG is also present in the supply to wholesale markets. As many companies generate their turnover through restaurateurs and weekly markets, the post-Covid trend is shifting in a different direction. However, we still supply all important wholesale markets daily, whether in Munich, Hamburg, Leipzig, Mannheim, Frankfurt, Karlsruhe, etc."
Reduced competition pressure from imported goods
Friedrich expressed some disappointment about the demand during the season: "Although we have enough goods available, for example in the main harvest window of zucchini, there are still imports from Southern Europe during these periods. This is annoying because we focus on sustainability and proximity. Otherwise, this year it seemed that the competitive pressure from abroad was rather low, as they also had lower availability due to the weather. We could have marketed more goods than we had, which is why we sometimes had to buy additional goods to be able to serve the retail trade. However, the proportion of purchased goods should not become too high. After all, we are still primarily a producer organization. Production remains the focus and we want to encourage our producers at Pfalzmarkt."
Stable production areas
The production areas have largely remained the same, with only 200 hectares being lost. "As soon as the local irrigation association covers more areas in the Palatinate, the corresponding vegetable cultivation areas will increase again. The irrigation association has also presented us with a project that links the counts at weather stations, enabling more precise irrigation," explains Friedrich.
Increasing documentation requirements
In addition to the already high production pressure, there is now also a higher documentation effort in various areas. "We try to support the companies wherever we can, so that they do not get lost in the multitude of documentation obligations. In this respect, we act as a link to offer suitable software solutions or necessary data. But we can also assist our producer companies with advice or action in areas such as QS certification, field record keeping, personnel management, company management, and packing program, etc."
Sustainability is a topic that Pfalzmarkt eG has been driving for decades. And this is increasingly important to partners or service providers. "We are also encouraged by the banks to state our sustainability standards. Step by step, sustainability certifications are being carried out, especially since the cooperative association has already announced that we have to prepare a sustainability report by 2025. This is also associated with a great effort, but also with diverse opportunities."
Honest investments instead of greenwashing
In a materiality analysis scheduled for the spring, the company's elements essential for sustainability will be examined in terms of social, ecological, and economic aspects. "The retail trade also approached us and asked for climate-neutral products. In recent months, we have therefore intensified our work in this area. What we definitely want to avoid is buying ourselves free with any projects. These have to be honest investments in sustainability, otherwise it's pointless."
No plans to expand under-glass production for now
In view of the now frequently capricious weather, the question arises whether under-glass production would not be a good solution in the long run. "Our farmers are open field producers. It will not be easy to convince them to work more often in the greenhouse in the future. Of course, we are still dealing with the topic. The crucial point is to find locations where we can obtain energy cheaply," says Friedrich. "Greenhouses with gas heating are no longer profitable, as was shown this year by colleagues in the Knoblauchsland region." He cited a plant and flower business that mainly supplied DIY stores and went bankrupt. "He heated his business with Siberian coal, due to its high calorific value. The DIY stores then pushed his prices down so much that he could no longer keep up and they delisted him."
The subsidiaries Pfalz Fresh, Pfalzmarkt Logistics and Services, and the PVG Pfalz Packaging were merged into the Gemüsegarten RheinPfalz. However, Pfalz Fresh and Pfalzmarkt Logistics and Services will remain as brands. This is intended to streamline and further digitize internal processes, and also to simplify sales.
The second part of the interview, including a look at Pfalzmarkt eG's export business, can be found in the next Primeur special edition for Fruit Logistica 2024.
For more information:
Reinhard Oerther and Hans-Jörg Friedrich
Pfalzmarkt for Fruit and Vegetables eG
Neustadter Str. 100
67112 Mutterstadt
Email: [email protected]
Internet: www.pfalzmarkt.de