Through its fresh produce division ERP Produce, Europe Retail Packing has taken rapid and decisive steps to respond to the ongoing conflict in the Middle East, says Omer Kamp. "Supply chains depend on international sourcing, air freight, energy markets, and raw materials. Whether we accept it or not, the industry is deeply interconnected. The situation requires action, not hesitation. At ERP, the choice was simple: we act."
"Despite ongoing uncertainty, the impact of the conflict will remain visible in the market for the coming months. Even if the situation stabilizes quickly, airline capacity and pricing will not recover overnight. At the same time, shortages in raw materials and increasing backorders are already affecting availability across the chain."
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"The market needs time to rebalance," says Raymond van der Burgh. "I expect disruptions in supply, pricing, and planning to continue for at least four to six months before stability returns. In response, ERP Produce has strengthened its sourcing strategy with a clear focus on Europe. Alongside our Dutch growers specializing in herbs, capsicums, and greenhouse vegetables, we have increased sourcing from Spain, Germany, and Italy. These volumes are combined with existing supply lines from Africa, including Kenya and Ethiopia."
Max De Vetten adds that this broader sourcing approach increases flexibility and ensures continuity in supply.
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And the costs of the entire operation keep increasing at the moment, Kamp explains: "Costs across production, transport, storage, and raw materials continue to rise at a rapid pace. Packaging materials such as plastic, lining sheets, and cardboard have increased significantly in price. This is largely driven by shortages of petrochemical components sourced from the Persian Gulf. These developments create pressure for small and medium-sized companies. Larger operators such as Europe Retail Packing (ERP Produce division) are better positioned to absorb these increases due to stronger capacity and existing stock levels."
Market conditions remain complex, as highlighted by Gaby Proot De Bruin. "Local European production is currently strong, with herbs widely available across Germany, Italy, and the Czech Republic. The Netherlands and Belgium are expected to follow shortly. At the same time, demand remains relatively subdued. Seasonal holidays, changing consumer behaviour, and reduced spending on dining out are key factors. However, this balance can shift quickly. Reduced harvesting during periods of oversupply may result in sudden shortages, especially when crops move beyond their optimal stage."
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Looking ahead, ERP expresses concerns about fertilizer availability, particularly in relation to tensions involving Iran. Current stock levels may cover the next six to twelve months. Beyond that, shortages in petrochemical inputs could lead to supply gaps. This may result in higher prices, lower yields, and long-term pressure on global food production.
"If corrective actions are not taken, the industry may face challenges of unprecedented magnitude. We continue to invest in flexibility, sourcing strength, and packaging capacity. For importers, exporters, and suppliers to retail and wholesale, this means reliable access to herbs and greenhouse vegetables from both EU and African origins, flexibility to switch quickly between origins when supply is under pressure, continuity in packaging, even during raw material shortages, and one single partner for sourcing, packing, and logistics, reducing risk and complexity," Kamp concludes.
© Europe Retail PackingFor more information:
Omer Kamp
Europe Retail Packing
Tel: +31 (0)174 28 25 1
Email: [email protected]
www.europeretailpacking.nl
