At Landgard. Germany's largest sales organisation of flowers. plants, vegetables and fruit not everything is going well. Last year was a difficult year for the company. Amongst others the bankruptcy of a big customer in Great Britain and the EHEC-crisis did a lot of damage. Landgard was really hit hard.
Sales of fruit and vegetables last year were already disappointing for Landgard. But despite that, the chairman of Landgard Henning Schmidt is of the opinion, that the cooperative is going in the right direction and is well prepared for the future. The main cause of the loss suffered in the fruit and vegetable sector was really the EHEC-crisis. Horticulture in all of Germany suffered a loss of 4 million Euro daily and that does not pass unnoticed to a sales organisation such as Landgard. The vegetable producers and with them Landgard still suffer because of the continual low demand and the oversupply on the market. The result is then pressure on the price.
A big problem for Landgard is the fact, that at the moment clients in the foodstuff retail trade on average pay their accounts only after 40 days. Some big customers require even much longer payment terms. In some cases even as long as 60 days. The growers, however, are paid after 14 days. As a result there is a three digit million amount which Landgard must finance by means of loans. Therefore Landgard want their suppliers to grant concessions. Landgard plan to request its suppliers agree to a longer term.
A big change at Landgard last year was the joint venture with FlevoHolland resulting in Auction House Rhein-Maas. The former auction houses Straelen-Herongen and Geldern-Lüllingen were combined with the former auction house Venlo (FloralHolland) and established in Herongen. The Auction House Rhein-Maas, being part of Landgard, was put into use at the end of November 2010 and it is expected that the annual turnover will be 250 million Euro.
A big change at Landgard last year was the joint venture with FlevoHolland resulting in Auction House Rhein-Maas. The former auction houses Straelen-Herongen and Geldern-Lüllingen were combined with the former auction house Venlo (FloralHolland) and established in Herongen. The Auction House Rhein-Maas, being part of Landgard, was put into use at the end of November 2010 and it is expected that the annual turnover will be 250 million Euro.
For the coming year Landgard have set a growth target of 3%. By increasing their service delivery the cooperative want to reduce their dependence on the foodstuff retail trade. Landgard will try and increase their position of leading sales organisation in Germany and Europe further. The expansion to a more extensive service offer from field to shop will only be successful in cooperation with the growers and the trade.