Manager Gert Mulder of the GroentenFruit Huis cannot emphasize the uniqueness of the Russian boycott enough. "That the entire EU and a few other countries aren't able to export to Russia for a full year, is unprecedented. We're not talking about MRLs, bugs or bullying, for which solutions are often found quickly, but a political boycott. Nobody knows what will happen. Putin could just as easily allow certain flows within a month, but that seems improbable, because the man has never shown weak knees."
Boycott caused by politics
Now that support for growers and growers' associations is coming about through a concrete EU measure, Mulder calls upon the cabinet not to forget about traders/exporters either. "Just yesterday, we spoke to different parties in the House of Representatives, and the political will is there to look at all affected companies in the chain. Too many trading companies across the board are hit unmercifully and disproportionately by this import ban. Healthy companies shouldn't be allowed to collapse as a result of sanctions. At first, current regulations are often being looked at, that's understandable and they've been activated now. Now I am - in cooperation with the trading companies - looking to see if the proposed measures offer reprieve. It's now already apparent that bespoke measures are needed. For instance, the part-time unemployment benefit proposed by the cabinet, has a maximum period of 24 weeks. With a boycott that lasts a year, that's not good enough. Fortunately, we're receiving signals that this is a problem caused by politics, and politicians want to find a solution for it."
The GroentenFruit Huis manager reacts fiercely to the question whether exporting to Russia falls under entrepreneurial risk. "There is no product with a producer, and no export without an exporter. Last week, Statistics Netherlands revealed that the Dutch economy grew with 0.5% thanks to export. Everyone can easily export to 'easy' markets, but for the difficult markets, specialized companies are needed. If the Netherlands wants to strengthen its export position, specialized exporters will be needed, otherwise such a market will not emerge at all. For over ten years, investments have been done in a country like Russia. Last year, we still had a year of friendship, and the king and queen drank a beer with Putin."
Entrepreneurial risk
"Russia is a market with two faces. First of all, it's a quality market that's strongly developing with a growing retail, which the Netherlands can respond to well with stable, fixed lines. In addition, it's a volume market that can purchase gigantic quantities now and then if the price is right, that is, low enough. But it seems as if everyone gets confused by these temporary volume products, and nobody seems to look at the mixed cars. I think it's very weak when companies that are in the front line, dealing with emerging markets, are now being shot down because they took too many risks. Because we are really not going to get by with our exports to the United Kingdom and Germany alone, we also need new markets", Mulder continues. "After five years, we're allowed to export pears to China. Should I discourage companies from doing so, just because it's a difficult country to do business in? The GroentenFruit Huis is investing in know-how about China, precisely to give the companies and the Netherlands a stronger position. For twenty years, there has hardly been any turmoil in Russia. It's not a straightforward country, but then, Brazil isn't either, and do you know how tomato export to the US has been decimated?"
Entrepreneurial risk
"Russia is a market with two faces. First of all, it's a quality market that's strongly developing with a growing retail, which the Netherlands can respond to well with stable, fixed lines. In addition, it's a volume market that can purchase gigantic quantities now and then if the price is right, that is, low enough. But it seems as if everyone gets confused by these temporary volume products, and nobody seems to look at the mixed cars. I think it's very weak when companies that are in the front line, dealing with emerging markets, are now being shot down because they took too many risks. Because we are really not going to get by with our exports to the United Kingdom and Germany alone, we also need new markets", Mulder continues. "After five years, we're allowed to export pears to China. Should I discourage companies from doing so, just because it's a difficult country to do business in? The GroentenFruit Huis is investing in know-how about China, precisely to give the companies and the Netherlands a stronger position. For twenty years, there has hardly been any turmoil in Russia. It's not a straightforward country, but then, Brazil isn't either, and do you know how tomato export to the US has been decimated?"
Nevertheless, trading companies will have to adapt to the new situation, according to the manager of the GroentenFruit Huis. Because the restrictions won't be gone in the short term, layoffs can't be ruled out. "I can hardly imagine this won't happen. We're talking about a billion in exports, side-lining us for a year. And when the ban is lifted again, we will have to win back this export step by step, that won't happen in half a year." Gert calls upon traders and growers' associations to report information on the Russian blockade. "Are there still shipments on the road from exporters? Have trucks been sent back? Have trucks been stopped that were about to leave? This information is very important for the GroentenFruit Huis and the sector. If everyone reports their direct damage, we have a better view, and we're better able to enter into talks with the government."