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Ecoveg has expansion plans

“Price pressure also becoming more noticeable in organics”

Ecoveg is a company that has been packing and trading organic products for years already. “Our own cultivation company Hamerlinck grows half our products, and we also market product from third parties,” says owner Krist Hamerlinck. He enjoyed an education that was related to horticulture, and through his internships he came into contact with the organic sector. “I noticed a good demand for organic products, and then decided to start my own cultivation company. I was never really attracted to the conevntional, because of how massive that is. Organic truly is a niche market, and economically, it has been a good decision to start cultivating organically. There is more demand than supply. I therefore did not start from a ‘conviction,’ but it has come to me over time.”



Sales
Van Hamerlinck LV, the cultivation company, produces greenhouse vegetables such as cucumbers, bell peppers and tomatoes. Soft fruit is also produced, and outdoor vegetables, including several types of cabbage. “Ecoveg is the sales organisation that was founded from Hamerlinck. Hamerlinck’s products are sold through Best of Four. In 1997, we switched our company to organic cultivation. In 1999 we had the first season in which we could market the products.” Ecoveg sells its products in both Belgium and in other European countries. “The products cultivated in Belgium are also sold in Belgium. Additionally, we export to Germany, Scandinavian countries and the UK. The products are gathered, from various locations in Belgium and the Netherlands, in Assenede, Belgium. There, they are custom-packed for the customers and delivered. The largest share is packed under private label, a smaller share is packed under Ecoveg as brand. We hope that sales under our own brand will increase in the coming years.”


Krist and his wife Cindy. In 2011/12, Cindy was named ‘most beautiful farmer of Flanders.’

Not enough attention
Krist indicates that they used to be connected to a Belgian auction with the cultivation company at first. “Unfortunately, our product was not given enough attention there, and it was not sold quickly enough. This caused quality problems that we personally could do nothing about. That is why we left the auction after a number of years, and took care of sales ourselves for a while. After that we joined Best of Four, a Dutch cultivator’s association that now markets the products for us. At the time, we started with 15 hectares of greenhouse cultivation and 40 hectares of outdoor cultivation, at locations both in Belgium and the Netherlands. Because of increasing demand from the US, we also started a cultivation company in Mexico in 2006.”



The organic cultivator sees prices for conventional and organic getting ever more similar. “On the one hand it is good, because that would mean organic would become affordable for a larger group of people. But on the other hand, low prices are not always an advantage. It costs more time and money to produce organic products, so prices should be higher. Over time, more and more retailers wanted to offer organic. You used to have organic food shops, but nowadays you can even get organic from discounters. So it is good that demand is increasing, but buyers from retailers are known for mostly looking at prices. Price pressure is therefore also becoming more noticeable in organic, I do not think you can escape that. Yet organic cultivators need 30 to 40 per cent more than conventional cultivators. I expect mostly smaller producers will be in more trouble in future.”

Looking for cultivators
Ecoveg is also still looking for cultivators who want to join them. “It is a win-win situation, because Ecoveg does more for its cultivators than just packing and selling. Ecoveg can help invest, provide start-up capital, provide cultivation-technical support, and give advice on purchases (joint purchases). Specifically for greenhouse cultivators we have a weekly tour at the joined companies in order to have climate control and organic pest control go smoothly. This results in a perfect knowledge exchange, and that can only be good for production and quality.”

Growth 
Both companies have grown considerably in recent years, and there are expansion plans. “This year, we want to expand with 16 hectares of greenhouses in Melsele, Belgium. The permit is not quite taken care of, so hopefully the plan will be approved this year. At the earliest, we expect to start supplying from this company in 2020. We also expect to expand in tomatoes in Mexico this year. Currently, we only grow cucumbers there. Besides, we regularly invest in new products, such as recently, with the bell pepper line.” Krist is positive about the future, especially regarding consumption. “We see demand increasing, people are eating more and more consciously. They pay attention to the origin of the fruit and vegetables, and to what sort of methods have been used in the cultivation. Besides, more people are becoming vegetarian. They are already quite serious about their food, and often eat organic.”



For more information:
Ecoveg bvba
Stoepestraat 5a
9960 ASSENEDE, BELGIUM
Mob Krist: +32 486 166 606
Fax : +32 9 251 62 45
info@ecoveg.be
www.ecoveg.be
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