Dutch salad industry looks towards convenience as economy revives

The low value of sterling against the euro and the recession hitting both the UK and Europe hard has produced plenty of issues for the Netherlands’ continuously innovative salad industry. Add to that the UK consumer preoccupation with locally produced food, regardless of whether domestic consumption can satisfy demand, and it makes for a pretty tough year.

The Rainbow Growers’ Group has stated with relief that it is “very happy” that all its growers will continue this year. “It is a harsh climate for them because prices were below cost value,” says Ingrid van der Voort, communications manager at the Dutch growers’ consortium. “We cannot survive another year like that.”

Dutch salad producers had a very dramatic 2009, but the industry has pulled through. Major breeder Enza Zaden expects the amount of land used for salad cultivation to remain the same or fall only slightly this year. “From a processing perspective, companies have gone back to cheaper lettuce mixes, but the amount consumed is the same,” explains Enza Zaden’s marketing manager, Annemieke Beemster.

“From a retail perspective, shelf space is analysed critically. The number of mixes has gone down and cheaper, less fancy mixes have appeared on the shelf.

“But the possibilities to differentiate remain in providing better quality, more shelf life, a crisp/crunch, taste and nutritional values.”

However, it seems that the green shoots of recovery are forcing their way through and salad producers have noticed a welcome shift. Micro cress producer Koppert Cress’s UK marketing manager Anneke Cuppen has seen a difference in the industry over the last two months. “The economic situation in the UK has definitely affected our business,” she says, “but in the last two months, it has been looking up for us. Sterling is becoming stronger and we have increased our promotional activity in 2010, with a lot of trade shows, demonstrations and customer visits to show people how to use our products. We saw a decline in business in 2009 but this year, sales have been up and interest has increased. Our profits will increase this year.”

And the Dutch salad industry is well placed to welcome this potential new wave of economic positivity, with its hectares of energy-efficient glasshouses and seamless supply chain.

However, producers are facing a challenge in the form of the buy British or local trend. Many believe that the industry’s sustainability provides an answer to any local claims.

“Generally, the horticultural industry in the Netherlands runs at a very high sustainability level, although of course it does vary from company to company,” says tomato grower group Prominent’s Ferdi van Elswijk. “Prominent invests in new forms of energy efficiency and co-generation, as well as the use of heat pumps for cooling, recycling and saving water use.

“I think the Dutch salad industry must offer a positive story when it comes to calculating the carbon footprint and comparing it [to local produce bought in the UK]. Our energy consumption in general is very low and we have improved it in terms of tomato production by 100 per cent in the last five years. You only have to look at our structures and glasshouses -you could not have predicted how compact and efficient they have become in the last couple of years. We are always investing in new techniques in glasshouse installation and new energy-saving formats. At the moment, Prominent is looking at geothermal systems. We are doing this firstly because we would like to reduce our energy costs, and secondly because it will be less of a carbon footprint.”

Cuppen believes that the Dutch salad industry does not push its environmental credentials enough and thinks businesses should use this positive story to counteract competition in the UK marketplace. “UK consumers have preferred local produce for quite a few years now, but if the quality is better from sources abroad they will go for it,” she says. “Could we promote our environmental credentials more? Yes, people are not aware of how we grow our products and how clean and clear our supply chain is. We have a good point of difference from producing nations such as Africa. Our greenhouses are natural, clean and efficient.”

Rainbow Growers’ Group has managed to get the best of both worlds with its production on Kent’s Thanet Earth site. “Our relationship with the UK market is good and has improved this year because of our affiliation with Thanet Earth, which won the Best Local Grower trophy at the Tesco Grower of the Year Awards at the end of last year,” says Van der Voort. “It was really rewarding to be recognised by one of the biggest supermarkets in the UK. Most English supermarkets want to buy local products and although we will not increase our tomato production in Kent this year, it is going very well and there is a lot of potential there for the future.”

This season, Rainbow Growers’ Group sent its first crop of green bell peppers to the UK in early February. Aubergines, tomatoes and cucumbers, as well as yellow and orange peppers, followed suit by the end of February. The group’s first cucumbers were available by 10 February through producer Arjan de Gier. He has a production area of 6.1 hectares of cucumbers and sorts and packs his product at his own company, while Fresq Rainbow Growers’ Group BV markets the product. The category-one cucumbers are available in sizes 35 and 40 in a five-kilo Rainbow box, flow-packed or sealed.

“Quality-wise, we had a very good season, with hardly any product waste and superb quality,” says Van der Voort. “We have very good varieties provided by Westland Seeds just for us. We started trials of peppers with a longer shelf life last year and now we have 10ha and will start commercial production next year.

“We have seen a better yield of orange peppers this season. The growing matter was better in 2009 than in 2008 and the light levels were better.”

Rijk Zwaan has seen the basic lettuce offer of lollo rossa, lollo bionda, Batavia, Romaine, Little Gem and iceberg remain very popular, as well as more niche types such as corn salad, rocket, endive and radicchio causing a stir. “Niche items like Salanova are definitely increasing in a big way due to being able to process a whole bite-size leaf in the salad bag,” says the seed breeder’s marketing manager Marcel Barten. “New varieties of open-heart green Batavia, very sweet in taste, also prove to be increasingly popular.

“Quality is really a very important issue,” he continues, “especially in a situation when prices are not so good. Because a big part of the production is for export, shelf life is also an important issue, ensuring that consumers will always find a fresh and tasty product in the shop.”

Rijk Zwaan believes that the consumer will continue eating salads as part of a balanced diet. “With all ranges of salads becoming more flavoursome and with new leaf types becoming more popular, there has never been a more exciting time in the salad industry,” comments Barten. “As people travel and explore the world more, they also experience new tastes, which they would like to continue when they return from their travels.

“Cost is always a big problem for growers and processors and finding ways to reduce this are always sought. Consumption of lettuce of high quality, taste and good shelf life is going to increase. Mechanical planting and harvesting may become more important to Dutch growers and processors, if varieties lean themselves towards this and if quality and flavour are not compromised.”

As the UK slowly looks towards a recession-free economy, many feel that consumers will go back to their comfort zones and embrace the convenience trend that had gripped the nation before consumers became thrifty. “Convenience is going to be a big trend again,” says Cuppen. “But quality has always got to be good and it does depend on the type of consumer. The quality of prepared produce needs to be as good as if it is still living.”

Beemster agrees. “The salad industry is always being challenged to reduce costs while increasing quality,” she says. “Enza Zaden has also done its bit by introducing the Eazy Leaf range of salad varieties - a range of salad that has been specifically bred for efficient and fast machine harvesting, together with a low-cut area for optimal quality. In an age of convenience, processed salad will be a continuing trend and with our Eazy Leaf, it is set to be even more successful for the grower and consumer.”