"We have low fixed costs at DFS, but in the coming year, we want to increase our investment in the ICT area. We also want to further automate our processes, and so further reduce our overheads", says Alex. He sees a trend for ripened products, developing in certain European countries. "Additionally, we see increased sales of convenience packaging. We need an improved, good standard product to be more competitive with trendy products such as avocados or blueberries. We can achieve this by being innovative throughout the chain."
Alex van Ieperen and Niels Krijnen
"Our strength lies in the fact that we are the interpreter between growers and retailers. We, for example, made the frost problem known in time. We began telling our customers to manage their estimates already in May. We cannot do this alone; for this, we need the growers' input."
"I am convinced of the fact that there is room for specialist players in the area of top fruit sales. In recent years, growers have increased enormously in size. This is a trend that was seen much earlier in buyers. In order to add value, you have to be a specialist. The renewal on shop shelves is, however, lagging behind", says DFS' director. "Presently you find a lot of people looking for something new. Everyone wants a nice red or shiny pear. There is enormous potential to be successful by means of a closed chain. A supermarket will then have something unique on their shelves and the grower gets the chance to get their cost price, and then some. We would gladly be a part of such a chain."
The playing field is not equal
Alex finds the 'waste', which is still enormously high in the traditional sales canals, to be of concern. "European cost structures are also out of balance. There is no equal playing field on all levels. Dutch and Belgian growers have tried to solve this with higher production levels. But, in order to remain competitive with low wage countries, more automation is needed to keep costs under control. We have been working with specialised packing centres for the packaging of our fruit since DFS was started."
Alex finds the 'waste', which is still enormously high in the traditional sales canals, to be of concern. "European cost structures are also out of balance. There is no equal playing field on all levels. Dutch and Belgian growers have tried to solve this with higher production levels. But, in order to remain competitive with low wage countries, more automation is needed to keep costs under control. We have been working with specialised packing centres for the packaging of our fruit since DFS was started."
Looking ahead to the second half of the sales season, Alex remarks that growers who have stock need to closely monitor their quality. This is in order to determine the correct time to sell. They must also make clear agreements with buyers. "I am concerned that the time to sell pears, as well as apples, is closer than everyone thinks. Last year many people on both the growers and retail sides had a rude awakening because they expected larger shortages at the end of the season. We will have to help each other get the maximum returns on Dutch and Belgian products. This must, however, be coordinated much better."
Ripened pears
He has also noticed the demand for ripened pears increasing annually. "We see this, for example, in the United Kingdom. There, just as in other parts of Europe, overall consumption is decreasing, but the demand for ready-to-eat concepts is increasing. The younger generation has different spending and expectation patterns to the traditional consumers of old. They do not buy a bag of fruit to put in their fruit bowl. They want to immediately eat a tasty pear. I see big opportunities for our sector, but also for DFS itself, to respond to this."
The UK is an important sales market for DFS. "The Brits are becoming increasingly self-sufficient when it comes to apples. This is less so with pears. More professional growers are able to store their fruit until April or May. This is quite exceptional for Britain", says Alex. The looming Brexit is a negative development for both EU exporters and the Brits, themselves, according to him. "Whatever deal is struck, new agreements will have to be made and that always has negative repercussions. Unless it is almost a free trade treaty. The Brits will always need imported fruit, so I do not expect exports to be affected. But, if the administrative hassle costs even EUR 0,01 per kg. then it becomes an expensive story."
DFS also has a role to play in exports to China. "This is also a market with enormous potential. Although, I do not expect them to reach the volumes of the United Kingdom anytime soon. This season, the challenge seems to be to meet that country's qualitative needs", says Alex. "The demand for organic top fruit is also increasing throughout Europe, and especially Scandinavia. This type of cultivation is difficult, but there is a huge demand from buyers, so we have made a limited volume available. Together with our growers and sorting centres, we are confident about the future."
For more information:
Direct Fruit Services BV
49 Lichtschip
3991 CP Houten
Tel: 030-3031400
Fax: 030-3031399
[email protected]
www.directfruitservices.nl
