As Dutch salad exporters gear up for the peak season, many are armed with a few surprises up their sleeves. They are confident that Dutch salads can make further gains in the UK, one of their most important markets.
According to The Greenery, Dutch salad exports to the UK peak during late April to mid-October. Tomatoes and peppers are the most popular items shipped and in 2004, exports reached 385,000 tonnes, an increase of 11 per cent on the previous year.
“We expect to continue our growth in 2005, although it is always difficult to predict by how much,” says a spokesman.
Innovation seems to be a priority this year, with a number of exporters preparing to introduce new salad varieties. As a member of the independent growers group VDN, JM Levarht handles an extensive range of salad items including tomatoes, peppers, chillies, cucumbers, courgettes and lettuce.
“This year, the area devoted to salads has grown by 10-15 per cent in Holland,” says the company’s Marcel van der Linden. “And when the Dutch season ends, we work closely with producers from Spain, Turkey and Israel.”
JM Levarht will introduce a new cherry tomato line this season and will also offer a mini-pepper pack, known as ‘Pepper Parade’. “These mini-peppers are significantly sweeter than the ordinary pepper,” van der Linden says.
“Recently, we have seen more speciality tomatoes and peppers grown under artificial light which are now available year-round,” he continues.
According to leading marketers, Spain’s weather problems, which have affected the country’s lettuce output, could prove advantageous for Dutch growers.
However, many exporters advise caution. “Of course everybody is speculating as to what is happening in Spain and of course we will see higher prices at the beginning of the season, but everything depends on the weather in the rest of Europe and how soon other growing areas such as Turkey and Poland come on-line,” van der Linden says.
The Greenery notes that in 2004 there was an overproduction of many products in Europe. “Therefore if some volumes stay out of the market, it will help to address the supply/demand balance,” a spokesman says.
The Greenery believes that the big trend in Europe is the ‘Europanisation’ of the fruit and vegetable sector. “We believe that at the end of the day the competition will not be between countries anymore, but between European chains all using suppliers from different countries,” says a representative.
Meanwhile, many Dutch salad players are eyeing eastern Europe with interest but van der Linden believes it will take a couple of years before this area becomes an established market. “This is due to the fact that the salaries and therefore disposable income are not on the same level as in west Europe,” he says.
Other marketers gunning for growth this season include the Rainbow Growers Group. Members of the association produced some 20,000t of peppers and 2,600t of tomatoes in 2004. They are aiming even higher this year and are hoping to achieve production volumes of 25,000t of peppers and 3,000t of tomatoes.
The UK is a key market for the group, accounting for just under 20 per cent of total exports. “The UK is a very high quality market and we’ve proven that we’re good at supplying a top quality product, in the desired packaging, directly to the depots of the supermarkets,” says Renske van der Spek, communications manager.
It’s an exciting time for the Rainbow Growers Group and this year the association will offer limited volumes of two new products. Rainbow describes its cherry bomb product as a type of chilli shaped as a cherry tomato. According to van der Spek, the cherry bomb will be trialled in a selected UK supermarket later this year.
Another salad item that Rainbow hopes will find favour with consumers is its unique green pepper. With a higher Brix level compared to standard green peppers, the product also retains its colour when cut, thereby extending its shelf life.
Furthermore, Rainbow is busy expanding its production facility from the current capacity of 6,500m2. Building work will ensure that the facility will double to 13,000m2 and there will also be room for a second grading machine.
“All Rainbow growers will use this facility because we only grade in one place to guarantee a constant quality to our customers,” van der Spek explains. “We had to enlarge our current facility because our current growers are expanding their production areas and more growers are also joining our association.”
Van der Spek believes that growers’ associations are gaining leverage in the Netherlands and the supply chain from grower to retailer is shortening. “Unnecessary, expensive, links are being removed and that’s how we like to see it at Rainbow,” she notes.
As well as innovation, it’s also a time of consolidation for Rainbow members. “At the moment we’re not really exploring new markets, but of course we keep our eyes opened and see opportunities in Poland and Russia,” van der Spek says. “But this year it’s more important for us to become stronger in our current market. This means offering larger volumes, having more product lines, building on our relationships and proving that we can be just as successful as last year.”
“Our products are grown as environmentally friendly as possible and we’re able to supply pesticide free products. We go above and beyond the legal requirements,” van der Spek claims.
“Moreover, our modern tracking and tracing system means that we can account for every item grown in our greenhouses.”
In terms of market developments, while UK producers are busy extending their production capabilities, van der Spek believes that this will have little effect on Dutch shipments in the short term. “Compared to the Netherlands there is very little production area in the UK and for this reason, an expansion of 5-10 per cent won’t be very noticeable to Dutch growers,” she says.
Meanwhile, Dutch marketers are preparing to maintain their lead in the UK. However, in these times of expanding trade opportunities, some are also exploring other markets further afield. “We are developing some niche markets in the Middle East and, in the long run, China is a market we must not forget,” The Greenery adds.
EOSTA TARGETS UK RETAILERS
Demand for organic fresh produce has never been stronger and many Dutch companies are doing their bit to encourage consumption. Eosta, the Dutch organic producer, is a key shipper of tomatoes to the UK market. The company supplies a wide range of varieties including tomatoes on the vine, Santa, plum and cherry tomatoes. In addition, the company exports a full range of pepper varieties and cucumbers.
Volumes peak during the May-June period and according to Gert Kögeler, Eosta’s commercial director, the company anticipates continued growth for niche products.
“We see a large increase in the popularity of tomatoes with a different taste or shape, such as wild tomatoes and special organic peppers like Ramiro,” notes Kögeler, adding that the firm plans to increase volumes to UK retailers by a significant 20 per cent this season.
The rise has largely been attributed to growing programmes with retailers, in addition to an increase in production and continued confidence in some of its key products.
This season, Eosta will market a number of newer varieties of salads to the UK. These will include the Caromate - a small, orange plum tomato with a strong taste and packed with vitamin A carotene.
Eosta is also continuing its wild tomato range and according to the firm, its growers have improved the quality and availability of this product.
‘’As well as these two products, we’ll also offer our Wild Graffiti (striped) aubergines, “Sweet Bite” orange peppers and Egyptian chilli peppers,” Kögeler reveals.
There’s little doubt that organic fresh produce enjoys a strong following, with greenhouses rapidly expanding to meet the growing demand. However, in recent years, Eosta believes that consumers are becoming more savvy.
“Consumers don’t just buy organic produce because the products are healthy and tasty,” Kögeler claims. “We are also clearly seeing growing demand for fair trade and environmentally friendly products.”
While the UK market is already a staunch supporter of organic fresh produce, Eosta notes that there are also opportunities in the Dutch market. Indeed, consumption could rise following the establishment of a task force by the Dutch government to increase the consumption of organic products in the Netherlands.
Eosta is also making headway in east Europe and recently the firm has begun supplying one pallet of organic produce to a new chain of health-food shops in Moscow on a weekly basis.
RIJK ZWAAN GUNS FOR GROWTH
Dutch breeding company Rijk Zwaan Distribution BV unveiled its new catalogue at Fruit Logistica 2005. The catalogue, which specialises in products for the convenience sector, has been specifically developed for the fresh produce industry and contains extensive descriptions of the various products it offers.
Rijk Zwaan has been busy promoting its Salanova branded salad-concept, which was launched two years ago, and will be adding new varieties in the coming years.
“Salanova is a cost effective salad that is easier to process, which means less use of labour,” notes Rijk Zwaan’s Jan Doldersum. “Its other attributes are firm leaf structure and a longer shelf life compared to other salads.”
“It suits both the fresh and processing sectors, as well as food service, and growers in many countries are producing it commercially for the second year.”
Over the last two years, Rijk Zwaan has explored overseas opportunities in the convenience sector. “We have conducted market research programmes in the UK, US, Australia, the Benelux countries and Germany. At the moment we are also looking at the Spanish market,” Doldersum says.
