"When looking at the turnover of vegetables in 2011 at REO Auction House we can only come to the conclusion, that 2011 was a bad year for vegetable growers in West Flanders, Belgium" Paul Demyttenaere, director of REO concludes. "This year has hurt the producers of just about all vegetables in Northern and Western Europe."
"It already started early in the year with the production in Southern and Northern Europe, which because of the weather conditions became completely mixed up. After that the summer, which was dominated by the EHEC-bacteria and a difficult price forming because of a by protectionism decreased market. Finally we had in the whole of Europe an exceptionally productive summer and autumn, when also the price forming of open ground vegetables collapsed. A decrease in turnover of vegetables of more than 25% at REO Auction House was ascertained compared to 2010. We should, however, put this in perspective, because 2010 with a turnover of 178 million Euro was the best year ever. It is better to compare the 131 million Euro with the average turnover of REO Auction House of the last five years, which was about 145 million Euro."
"The largest turnover decrease percentage-wise was in the glasshouse lettuce sector. This amounts to more than 50% over the last few years. Also the turnover in leeks decreased a great deal compared to 2010. We should add, however, that the winter effect of the previous leek season was fully realised in November and December 2010, with the result that 2010 actually showed two winter seasons. Also with 'fruit' vegetables a strong turnover decrease was realised. Actually this was hidden at REO Auction House by an in percentage production of lit cultivation. When you know that leeks and lettuce traditionally take 40% of the turnover of REO Auction House for their account then it immediately becomes clear what the impact of these vegetables was on the turnover results of the past year. Leeks are still difficult at the moment. Large yields and day temperatures of 10C in January are not really good for a winter vegetable, such as leeks. But it is too early to judge the leek season now already. The weather conditions have an important effect.
Growth with courgettes and strawberries
"Nevertheless not everything was bad. For instance there was considerable growth in the supply and turnover of courgettes and this has been so for a period of 5 years. Also the production of strawberries increased in 2011. Up to and including the summer months the open ground vegetables did very well, especially the storage products and also cauliflower and broccoli sold well."
Glass horticultural area Roeselare
REO Auction House will cooperate in 2011 in various things planned in West-Flanders. "At the moment a lot of things are being done by the municipal services of Roeselare on a plan for a small glass horticultural area. This is to be realised by the exclusive use of industrial residual values. In this way horticultural production is to become completely independent of fossil fuel. The research is between the horticultural production and the supplier of residual heat to realise this."
"In addition to the provincial agricultural government in West-Flanders a meeting will be held with all stake holders in horticulture about the future of the sector. The aim is to define the strengths and weaknesses of horticulture in a region. From this the necessity of research, information, town planning and investment are defined. It is important that the local government believes in the future of horticulture and the means available for research and information and the desire to use these in the best possible way for the future of horticulture in West-Flanders with its production for the fresh market and the processing deep-freeze industry remains one of the most important European vegetable regions."
"Finally also with REO Auction House, on instructions from the Board of Directors, a study group consisting of producers responsible for various vegetables, works on a strategy round a trade-mark policy for the future. 2012 will undoubtedly be a challenging year" Demyttenaere concludes.
REO Auction House was also interviewed by Focus wtv-tv about the year 2011.
REO Auction House was also interviewed by Focus wtv-tv about the year 2011.