When will the market for greenhouse strawberries be satisfied? For years, it has been thought that the time is nearing, but greenhouse strawberry growers continue to do good business. And that’s not all, the cultivation of soft fruit in greenhouses is expanding.
During the first 15 years of this century, the yield of strawberries grown under glass and tunnels has increased by at least 90 per cent. In 2015, total yield amounted to 28.6 thousand tonnes, compared to 15 thousand tonnes in 2000. The area also increased significantly: from 180 hectares in 2000 to 357 hectares in 2015. In Belgium, the area of greenhouse cultivation amounted to 435 hectares in 2015. The growth of the sector causes yearly unrest. “The question is when that saturation point has been reached,” we wrote in 2013, when strawberries were grown in more than 200 hectares of greenhouses. Yet it didn’t happen. Indeed, while the fruit vegetable sector experienced some difficult years, greenhouse strawberries fetched nice prices.
Good market circumstances
Why are the market circumstances this good? Last year, the warm autumn ensured good market circumstances for greenhouse strawberry growers, while they profited in the spring from a disappointing Spanish harvest. Belgian growers are also talking of a good strawberry year: fewer strawberries, but an average price that is almost 50 cents higher than during the previous year (for the entire market, not just greenhouse production). But more important than the competition figures and the productions is the trend on the market: consumption of soft fruit is increasing considerably. Last year, Rabobank spoke of a demand that will grow by two per cent every five years. For products such as blueberries, raspberries, blackberries and other berries, demand increased by seven per cent. “Soft fruit is becoming increasingly interesting for fruit growers because of the increasing demand, but it’s an enormous challenge to supply a complete range with the required quality 365 days of the year,” the bank concluded. Scale also plays an important part, according to the bank. They predict that large retail chains of the EU will be supplied by ten soft fruit suppliers in time.
Increased area greenhouse strawberry cultivation
The growth of the strawberry cultivation under glass experienced various boosters in recent years. Because of the crisis in greenhouse horticulture, a great number of greenhouses were sold for low prices. Especially smaller gardens, up to three hectares in size, are less interesting for fruit vegetable growers due to scaling-up. Producing a product with an added value is a requirement. That’s done by growing specialities, among other things, but also by switching to profitable crops such as soft fruit. Now that money has been made in fruit vegetables again, prices for greenhouse and horticultural land will increase on the one hand, resulting in less options of taking over a greenhouse for next to nothing, and filling it with strawberries. On the other hand, because of the better market circumstances in greenhouse vegetables, the construction of various enormous nurseries has been announced. The bell pepper area increased by tens of hectares this year, and tomatoes are expected to grow by more than 150 hectares. Because of that, room on the market for smaller cultivation companies rapidly decreases on the market, and smaller nurseries, suitable for the cultivation of soft fruit, can get on the market.
Tensions on the market
For this season, indicators can once again be found for tensions on the strawberry market. It appears as if Huelva will be able to last a bit longer than in previous years. Although the Dutch greenhouse strawberry isn’t a direct competitor of the Spanish due to the difference in quality, the market is pressured when product from Spain is available for longer periods. However, these kinds of circumstances were also indicated for reasons the greenhouse strawberry would have a bad season five years ago. And up till now, the market went in the opposite direction each year.