This week the director of The Greenery and its Cooperative Coforta presented the annual figures for 2011. The press release has been published on this site. General director Philip Smits talked about an eventful year, in which the EHEC-crisis caused lower sales volumes and prices. "The EHEC-crisis cost The Greenery about 6 million Euro in combination with the bad summer this resulted especially for our growers, in a dramatically bad summer."The lower volumes and selling prices resulted in a turnover of 1.61 billion Euro against 1.84 billion Euro in 2010. About 51% of the turnover is realised from fruit vegetables; 17% of the turnover is of open ground vegetables and all the fruit including exotics is about 24% of the turnover; 53% of the turnover is realised by the Greenery in the Benelux, 15% in Germany, 12% in the United Kingdom, 10% in the other European countries and 6% in the rest of the world.
Philip Smits and Theo Ammerlaan
Area fruit vegetables
Philip Smits proudly mentioned that with effect from January 2012 the area fruit vegetables of The Greenery has been increased by 71 HA of tomatoes and cucumbers: 54 HA in the Netherlands and 17 HA in the United Kingdom. The total area of tomatoes at The Greenery with this growth is now more than 350 HA, as per Smits. According to the director these growers choose Coforta mainly because of the clarity and focus. We need to mention however, that this is about fruit vegetables, which are being marketed via The Greenery BV. Last year October 33 tomato growers, 6 aubergine growers, 40 pepper growers and 2 cucumber growers connected to the T-model of Coforta changed to FresQ.
That The Greenery is no longer market leader this year in the fruit vegetables Philip Smits found completely irrelevant. "We are often preferred supplier in the European retail. One may be market leader in a certain product, but it does not mean much to me if that product is marketed over a large number of trading companies." When asked about the future of the T-model the cooperation chairman Theo Ammerlaan replied that he did not think it was desriable to have two strategies next to one another, but that in September the Council of Members will finally decide.
Smits said that at the start of 2012 The Greenery is in a better condition than at the start of 2011. The director also mentioned that a net profit of 10 to 15 million Euro must be possible in time, although this is an ultimate objective. Furthermore the financial director Albert Knol immediately made the remark, that this will not be reached in 2012. In 2011 much attention was paid to the implementation of SAP-software at The Greenery Benelux. In the first half of 2013 it is expected to have the SAP-system serve the entire company. The effort, time and money to get the project working are considerable and that will be recorded in the 2012 balance sheet, although we expect this investment to recover the cost.
Smits said that at the start of 2012 The Greenery is in a better condition than at the start of 2011. The director also mentioned that a net profit of 10 to 15 million Euro must be possible in time, although this is an ultimate objective. Furthermore the financial director Albert Knol immediately made the remark, that this will not be reached in 2012. In 2011 much attention was paid to the implementation of SAP-software at The Greenery Benelux. In the first half of 2013 it is expected to have the SAP-system serve the entire company. The effort, time and money to get the project working are considerable and that will be recorded in the 2012 balance sheet, although we expect this investment to recover the cost.
Smits also mentioned that The Greenery carefully follow the developments in the area of online sales by retailers. "We have first class rendering of logistic service and are strong in filling of orders. Therefore we have the knowledge and the capacity to serve the supermarkets online."
Local-for-local
Local-for-local
Smits also mentioned the increasing preference of consumers for locally produced product in important export markets. For some years already The Greenery has looked for possibilities to cooperate with local producers in the basic market. In this way the position was strengthened by cooperation with the English producer of fruit vegetables in 2011. Cornerways Nurseries is after John Baarda of Billingham (member since 2011) the second English grower joining Cooperative Coforta. The Greenery is now in control of a considerable share of the total volume of tomatoes in the United Kingdom.
The Greenery director did mention that the financial possibilities for investment with the growers abroad are limited. "As The Greenery we will not invest in abundance in production, but we are looking carefully at every possibility to assist our export markets. To Mexico we exported a lot of knowledge, as a result of which from Mexico we now sell a firm volume of product to the North-American market."
The Greenery director did mention that the financial possibilities for investment with the growers abroad are limited. "As The Greenery we will not invest in abundance in production, but we are looking carefully at every possibility to assist our export markets. To Mexico we exported a lot of knowledge, as a result of which from Mexico we now sell a firm volume of product to the North-American market."
Theo Ammerlaan also mentioned, from a growers perspective, not surprising that it is still relatively quiet about the new building plans in Germany. "It is not for nothing that the Dutch glasshouse horticultural companies are mainly close to the sea. From a production perspective a land as Eastern Europe could for instance be more attractive to start a glasshouse horticultural company."
Club varieties
An important spearhead in the strategy of The Greenery is increasing the exclusive club varieties, which demonstrably showed growth in area in 2011. The apple varieties Rubens, Junami and Wellant with a total of almost 8 million kgs were offered in 2011 and of the Sweet Sensation pear almost 1 million kgs. With partners in France, South Africa and Argentina, The Greenery can supply the pear varieties Sweet Sensation and Dazzling Gold all year round in future and satisfy the increasing demand for local product in the core market France.
"We have been successful in the Netherlands and at our export market with club varieties. The Sweet Sensation with a relatively limited volume was sold out before the season started," Smits said. He also said, that The Greenery will also introduce club varieties in the coming period with their own name and identity for open ground vegetables, such as lettuce, chicory and Brussels sprouts.
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"We have been successful in the Netherlands and at our export market with club varieties. The Sweet Sensation with a relatively limited volume was sold out before the season started," Smits said. He also said, that The Greenery will also introduce club varieties in the coming period with their own name and identity for open ground vegetables, such as lettuce, chicory and Brussels sprouts.
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