Just in time for the turn of the year, the first German endive from newly harvested roots was offered on the market. This marked the official start of the new marketing season. Despite cost increases and challenging market conditions, Togaz GmbH and its cooperation partners Hugo Jongejan (LOF BV) and Walter Buchmann (Chicorée Produktion NRW) can look back on a successful season so far. The signs for the new campaign are also very promising.
© Togaz GmbH
Crisp endive sprouts in the forcing chamber. In addition to the advertising campaigns already planned, short-term advertising campaigns can also be planned depending on supply and demand.
Constellation pays off
So far, the root qualities and sizes have been consistently satisfactory, reports Walter Buchmann, managing director of Chicorée Produktion NRW, based in Wesel. "Root planning has gone quite well on our farm. This means that we were able to start the new season with almost no gaps and thus had a fairly smooth transition." Apart from an upward trend at the beginning of the year, German endive prices are quite stable, adds Dr. Lukas Scholz from Togaz GmbH, part of the Gemüsering Group. "Volatility arises mainly abroad, for example, at auctions. Price fluctuations are therefore due more to external factors than to our production."
"As marketers, we are once again faced with the task this year of creating balance and offering German endive at attractive prices in relation to foreign supplies. On the one hand, we are monitoring the foreign market and prices there, and on the other hand, we must also keep our businesses competitive despite rising production costs. This includes a moderate increase in prices and revenues without the gap between them and imported goods becoming too wide. However, we can also achieve this because we have two good partners behind us in our own production company, Chicorée Produktion NRW, and LOF, who take care of cultivation and root issues, respectively." This unique constellation has proven its worth and is also paying off in the current season, Scholz continues.
© Togaz GmbHSenior partner Jan de Vries from LOF visits the forcing facility in Wesel. Three main varieties are produced in Wesel throughout the year.
As with many other crops, the ubiquitous cost increases are also making themselves felt in the chicory industry, confirms Buchmann, who has been at the helm of the modern forcing facility since 2018. "After the recent minimum wage increase, we too have to pay our skilled workers accordingly. Other operating expenses are also rising in the low percentage range. All in all, it is becoming more difficult to pass on the costs at the marketing level." Nevertheless, he says, current demand can be considered good. "Fruit vegetables, for example, are currently in short supply and expensive. In such cases, there is a noticeable increase in demand for products that are available continuously and of consistent quality. Endive also benefits from this. Unlike many other outdoor products, endive is not usually subject to large fluctuations in quantity and quality, which is a particular advantage for this product."
© Togaz GmbH
The three business partners in one picture, from left to right: producer Walter Buchmann, Hugo Jongejan (LOF), Dr. Lukas Scholz (Gemüsering/Togaz), and Gerwin de Vries (LOF)
Endive as a year-round product
With the start of the asparagus season in April/May, demand for endive usually declines gradually. Scholz: "Until a few years ago, endive was mainly considered a winter vegetable, but now many food retail chains list it all year round. In this respect, endive is increasingly establishing itself as a year-round product. We at Gemüsering are trying to further promote this trend with appropriate social media campaigns, among other things. Ultimately, this also benefits the competitiveness of our producers." According to Buchmann, capacity utilization at Chicorée Produktion NRW is reduced by a third during the off-season until September. "But every year is different: if lettuce doesn't hold up at the POS, we may see another increase in demand in June."
In general, endive is also becoming increasingly popular among younger consumers, the cooperation partners confirm unanimously. To reach this buyer group as well, 350g packages for single and two-person households have been offered in selected regions since this season, in addition to the proven 500g package. "We are also focusing on the development of sustainable, but also practical, packaging alternatives. Here, solutions have been continuously tested and analyzed in detail for several years, even before the PPWR Packaging Act came into force," they conclude.
Visit the company at Fruit Logistica: Hall 20 | B-41
For more information:
Dr. Lukas Scholz
TOGAZ - Thüringer Obst und Gemüseabsatzzentrale GmbH
Rudolstädter Straße 100a
99099 Erfurt
[email protected]
www.togaz.de
Walter Buchmann
Chicorée Produktion NRW GmbH & Co. KG
Im Wehagen 6
46485 Wesel
Phone: +49 281 47570550
E-Mail: [email protected]
www.chicoree-nrw.de
