Dutch fresh produce marketer The Greenery has said it expects 2010 to be 'another difficult year' for the Dutch horticultural sector, after posting what could be described as a defiantly positive set of figures which nevertheless reflect the tough trading conditions experienced in the past year.
The company also revealed it plans to maintain its focus on chain optimisation and cost efficiency in order to safeguard and improve grower returns. 'Given the current market conditions, improvement of the growers' sales position remains a crucial priority,' the company said in a statement.
It added that the recent repositioning of The Greenery cooperative as Coforta and the introduction of a restructured sales model had offered new marketing opportunities for both its member growers and the company as a whole.
Announcing the figures this morning, the company revealed it made a net profit of €7.4m in 2009, down on the net profit of €8.7m it made in 2008.
In what it described as 'a disappointing year' for growers and for the sector as a whole, The Greenery insisted its focus on cost control, efficiency measures and strengthening its customer service had helped it compensate for a decline of 15 per cent in average fruit and vegetable prices.
There were certainly positives to be found in the the company's operating result for 2009, which rose from €10m to €14m, while its solvency figure, capital base and equity capital all increased.
Profit allocations helped it increase its equity capital to €63m in 2009. As a result, the solvency figure rose to 12.3 per cent and the company’s capital base increased by 1 per cent to a 'satisfactory' 40 per cent.
However, the group also saw a 10 per cent drop in its overall turnover to €1.6bn. This time last year, The Greenery revealed its turnover had fallen 7.5 per cent during 2008 to €1.8bn.
In order to address the challenges presented by the difficult market conditions it faces, The Greenery recently launched a new, two-pronged strategy focusing on operational excellence and category leadership.
The operational excellence programme involved initiatives such as introducing more automation into its business and packaging processes, streamlining logistics and transport systems, and reorganising its sales structure.
Various measures, including the introduction of a new rates and levies system, have helped to significantly reduce cost levels for The Greenery's growers, the company reported.
'The two-year improvement programme launched in 2007 was successful and secured the intended improvement of €25m,' the company said.
By investing in customer services in terms of marketing, logistics and supply chain management, The Greenery said it had also become a stronger partner for its international retail customers.
Elsewhere, consumer research and data analysis have helped The Greenery to further professionalise the fruit, vegetable and potato sector, it noted, while sustainability programmes have been introduced in collaboration with growers and customers, and direct grower links have greatly shortened the food chain.
'In 2009 we started a continuous improvement and cost control process,' explained Philip Smits, The Greenery's general manager. 'Our aim is now to further strengthen our market position by intensifying and refocusing our services for customers.'
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