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133 million euros for producer organisations

23 January 2019 - Niels van der Boom

The growers who unite to sell their fruit and vegetables can count on lucrative subsidies. The Common Market Organization (CMO) Fruit and Vegetables pays out a total of €133 million to 9 Dutch producer organizations (spread over 5 years).

Nine producer organizations have been recognized in the Netherlands for 2019, reports the Netherlands Enterprise Agency (RVO.nl). They jointly receive €9 million from the European Union (EU), spread over a period of 133 years. The amount differs per producer organization. An organization must be recognized by RVO.nl and the Ministry of Agriculture, Nature and Food Quality.

Organization must sell
"To set up a producer organization, this organization must have at least 10 producing members," explains press officer Mathijs Tax. "In addition, they must jointly have a turnover of at least €25 million. An important condition is that the producer organization is actually charged with the sale of their products."

The 9 organizations are mostly active in the sale of (greenhouse) vegetables. There is also 1 organization for, for example, the sale of mushrooms. In the arable sector, 'Growers Association De Schakel' and 'Growers Cooperative Nautilus' from the Noordoostpolder are best known. De Schakel focuses mostly on preserves and Nautilus on organically grown crops. There is 2019 newly recognized producer organization for 1: Coöperatie DOOR from Maasdijk. This organization is also active in greenhouse vegetables.

Eligible
The EU stimulates the sale of products through a producer organisation. The subsidy partly aims to limit fluctuations in growers' incomes and to increase fruit and vegetable consumption. Personnel costs, sustainable means of production, other and general costs are eligible. In addition, the aim is to increase the quality and durability of the products.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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