Dutch fresh produce marketer The Greenery has reacted strongly to suggestions circulating in the trade that a recent reorganisation of its sales structure has put it at a commercial disadvantage, denying that the decision to set up a second sales division threatens to undermine its own business.
In a statement seen by Eurofruit, the group moved to dispel rumours that members of Coforta, the horticultural cooperative previously known as The Greenery UA, were seeking to bypass the marketing company in favour of Coforta Verkoop.
Established in February 2010, Coforta Verkoop was set up to market fresh produce supplied by growers who had demanded greater freedom to choose how they sold their products.
Growers belonging to the newly renamed Conforta cooperative were given permission to sell via Coforta Verkoop to the Dutch wholesale trade or Dutch exporters under a new model referred to as T (for transaction).
But those wishing to supply their products under the T model to foreign customers still have to do so via The Greenery itself, as Coforta Sales is only permitted to sell within the Netherlands.
According to The Greenery, however, the majority of Coforta's members have retained partnership agreements – known as Model P – under which sales are handled solely through The Greenery and only to retail customers.
'In terms of growers supplying The Greenery or Coforta Verkoop, the balance is 82 per cent supplying The Greenery and 18 per cent supplying Coforta Verkoop,' the statement read.
'So the vast majority is supplying The Greenery. Additionally, if you look at volumes, Coforta Verkoop BV sells half of its produce to The Greenery.
'The percentage of 60:40 is actually 80:20. With these volumes The Greenery is able to supply its clients, being retail, industry and wholesale.'
Question marks
Nevertheless, questions have been raised during the past couple of weeks about the future development of Coforta Verkoop and its role in relation to The Greenery, particularly with regard to foreign sales.
As revealed in the Dutch horticultural press last week, an unspecified number of Coforta cooperative members are seeking to sell their products directly to customers outside the Netherlands, something which they cannot do at present.
The Greenery's member council is due to meet in mid-December, and although nothing is yet decided, Eurofruit understands it will consider allowing Coforta Sales to sell products supplied by Model T growers direct to non-Dutch customers.
One Dutch industry insider, who did not wish to be named, implied the establishment of Coforta Sales and the decision to change the cooperative's name to Coforta reflected a major change in the way growers viewed the entire commercial process.
'Coforta growers are destroying The Greenery by selling their own produce via Coforta Sales and not via The Greenery,' said the source. 'The Greenery should never have allowed Coforta to be created and should have just asked the growers in question to leave.'
The insider added: 'The growers are in demand because they own the cooperative and the value is in Coforta, not The Greenery.'
Strong reaction
But such comments have been flatly refuted by The Greenery, which argued the new commercial models had been well received and, far from weakening its position, had given it the opportunity to grow its business.
'The evaluation of the model thus far is positive,' the statement continued. 'The Greenery has been able to strengthen its position with international retail and Cooperative Coforta has sold more produce (in volume terms) than last year.'
The goal of restructuring had been to offer growers greater freedom to choose how their produce was marketed, as well as strengthening the position of Cooperative Coforta and its subsidiaries, it said.
'Additionally, by giving more focus to both subsidiaries, the efficiency within the group is enhanced. The recent evaluation of the model has shown that growers, whether they're supplying The Greenery or Coforta Verkoop, are pleased with the new way of working.'
A full report, including the full statement from The Greenery, will appear in the January 2011 issue of Eurofruit Magazine.
