Construction of new glasshouses in the Netherlands reached an all-time low last year but the Dutch are confident they will retain fresh produce market share.
A new report by the Dutch Association of Greenhouse Suppliers (AVAG) said a slump in demand had triggered the decline.
Under pressure from a fall in demand, particularly for fresh vegetables following the recession, only 91 hectares of new glasshouses were installed during 2010, compared with 250ha during the previous 12 months.
The figure for 2009 itself was less than half the 509ha of glasshouse production established in 2008.
Rabobank analyst Cindy van Rijswick told FPJ: “The economic crisis really hit in 2009 and opportunities in the UK and Russia - which had been growth markets - slowed down as there was oversupply. This really affected cucumbers, peppers and tomatoes and prices for peppers have remained low. It then does not make sense to re-invest in a product which has no market.”
Van Rijswick said that land prices have increased meaning companies have become less attractive to invest in, preventing acquisition activity.
She added: “We are not worried that the Spanish will take market share as their productivity has been increasing and has now reached a level where there’s not much more for them to gain.”
AVAG said the long-term average for greenhouse new builds in the Netherlands - 325ha a year over the period 1992-2010 - “will certainly not be met”.
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