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Short-term thinking versus supply chain cooperation

Photo report: Entire supply chain represented at ZON Customer and Grower Day

"This is the fourth edition of ZON's Customer and Grower Day, and it is getting busier every year. This shows that the need to work together is strong and that growers and the trade want to cooperate and strengthen each other," Chairman Peter van Bree noted with satisfaction in his opening remarks.

© Izak Heijboer | FreshPlaza.comPeter van Bree

There were around 200 attendees at ZON's event at its home base in Venlo, where visitors were traditionally welcomed with Limburg flan. The cooperative has had the wind in its sails in recent years. "Turnover is rising, and we welcomed several large growers again this year. By keeping a tight grip on costs, we were able to reduce the commission for our growers," says Peter.

Challenges remain, however. As examples, the ZON chairman cited water, plant health, the environment, and foreign supply. "That growth is not progressing as quickly as we would like," he said. The challenges were also widely discussed during the panel discussion that moderator Anky van Veghel held with ZON director John Willems, growers Peer Schraven (Compliment) and Bas van Leeuwen (Westburg), and customer Michiel Geraedts of Staay Venlo.

© Izak Heijboer | FreshPlaza.comPanel discussion with John Willems, Peer Schraven, Bas van Leeuwen, Michel Geraedts

Director John Willems commented on short-term thinking in the chain. "Only a year ago, product availability seemed to be the industry's main concern. We now have one year with strong returns, and it seems everyone has already forgotten about it. The market situation caused by the severe weather in southern Europe should therefore be a major wake-up call that it cannot be taken for granted that all vegetables will always be available. And if we are not careful, healthy food will become unaffordable. Today, tomatoes were selling for 2.50 euros per kilo." A grower in the audience responded that he liked that, but the ZON director questioned whether tomatoes would continue to be sold in the long term at such prices. "For some people in our country, healthy food is becoming unaffordable," said John Willems.

"It is not a given that healthy food will always be available. The government should treat this as a strategic priority," agreed Staay Venlo director Michiel Geraedts. Staay Food Group has its own cultivation and, as a group, serves 2,500 customers in European retail, wholesale, foodservice, and processing industries. "That broad customer portfolio is extremely important in the risk game of supply and demand that we play every day. We operate in day trading, but also have many long-term partnerships."

Full-ground grower Peer Schraven questioned what the market will expect from Class I products in the future, with far fewer resources available. "Food safety will never be an issue, but colour, size, and defects will no longer meet Class I standards as we know them today."

© Izak Heijboer | FreshPlaza.comFlanders was also present: Katrien de Backer and Pascal Haenen (Vergro), Sven Jordens (Gemex), and Raf Heylen (Frans Michiels en Zonen)

Snack tomato grower Van Leeuwen addressed the goal of 100% green resources by 2030. "That will certainly not be easy, but the sector will have to invest in trials to determine what works and what does not. To do this, we should not wait for the government but take the initiative ourselves. Step on the gas!" ZON director Willems called on the government to largely leave the 'how' to the sector. "That will certainly help accelerate the transition to green resources."

Peer Schraven added that the expertise available in the field should be used. "Dutch knowledge is flown around the world. If we cannot do it, nobody can." In doing so, he also made a light-hearted remark about the growers' own efforts. "As growers, we have long failed to speak with one voice to the government. Only in recent years, with FVO and VGO, has this changed."

© Izak Heijboer | FreshPlaza.comGer Vissers (Vissers Bastings), Klaas van den Broek (NGM van den Broek Holding), René Smets (Bouten and Lenders Commissiehandel) and William Vergeldt (Vergeldt Vegetables)

Bas van Leeuwen called on fellow growers to develop their own plans despite all the challenges facing the sector. Westburg addressed this concretely by starting with five harvesting robots and, in addition to solar panels and batteries, taking the step into the energy transition with a large heat pump. "However, with these investments, you do need customers who are willing to make a long-term commitment; otherwise, the business case does not add up."

Chain cooperation, in other words. And the entire chain from cultivation to retail was present at ZON yesterday. With a unique combination of humour and neuroscientific insights, keynote speaker Arno Folkerts provided inspiration to make that change and cooperation concrete. There was ample opportunity to do so during the closing walking dinner.

Click here for the photo report

For more information:
ZON
Venrayseweg 102
5928 RH Venlo
Tel: +31 77 323 9999
[email protected]
www.royalzon.com

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