Philip Smits, managing director of major Dutch producer organisation The Greenery, says he believes further consolidation within the Netherlands' fresh produce sector and a more commercial outlook among producers will be eseential for it to attain a stronger position in negotiations with retailers.
In an interview with financial daily the Financieel Dagblad, Mr Smits said the merging of sales organisations was 'inevitable' if the sector wanted to achieve better prices for its products.
'The fruit and vegetable industry is compelled to follow the example of food retailers and focus more attention on their organisation and structure,' he said. 'Concentrating production and sales would contribute significantly to improving the position of growers, 85 per cent of whom are dependent on the supermarkets.'
According to Mr Smits, there is growing awareness of the idea that excessive production and product ranges which are too broad have contributed significantly to current low prices.
A recent report by Rabobank revealed that Dutch pepper growers stand to lose around €180m this year, equal to around €12-€15 per square metre, mainly as a result of a downturn in the European market.
