Canning cultivation popular, factory does not give in

There are a number of important reasons why arable farmers are interested in growing vegetable crops. The two main drivers are the Common Agricultural Policy (CAP) and the lack of alternatives. Last year's area figures show that a considerable increase in area is visible in some crops. This is especially the case for peas and green beans. Growing leguminous plants is rewarded in the CAP and a relatively significant increase in the contract price helped with this.

Arable farmer looking for alternative cultivation
The other reason – which is especially relevant at the moment – ​​is the lack of alternatives. All market parties mention this as an important factor. Winter grain has not been sown everywhere. Moreover, grain prices are at a completely different level. At its lowest point, the Matif recorded a wheat price just above €180 per tonne in early March. That was €265,75 a year earlier. So a third more. Conserves are seen as an alternative dormant crop in the arable farming plan. Not being able to obtain seed potatoes for consumption potato cultivation is another motivator to look for alternatives.

This situation also occurs to a greater or lesser extent in the European countries around us. Growers in Belgium, France and Germany are also looking for another crop. Those in the first two countries in particular have the advantage that they are relatively close to the processing industry, which is strongly focused in the west of Flanders. It is mainly the growers in Flevoland and further north - especially Groningen - who are disappointed this spring. Parties that issue contracts must make significant cuts in the area for the coming growing season.

Area up to 50% higher
In 2023, the area of ​​peas (for green harvesting) in the Netherlands increased by 51% to 6.250 hectares. The area of ​​green beans increased by 40%, to well over 4.000 hectares. The cultivation of kidney beans increased by 37% to 1.660 hectares. Other vegetable crops remained stable or even shrank slightly. Spinach fell by 18% to 1.720 hectares. These movements are evident from the area figures of Boerenbunder.nl, which are based on data from the Combined Statement.

To put these figures into perspective: in 2022 the area of ​​many crops dipped compared to 2021. It is not surprising that there was a significant increase in 2023. This most likely has to do with the contract prices offered and the alternatives. In particular wheat and barley, which were still well priced in 2022.

Canned or frozen
Buyers cite the built-up inventories in Europe as an important reason for cutting contracts this season. Vegetable consumption, especially canned vegetables (vegetables in a can or jar), is not growing. This is partly due to the group of buyers, which is on average older. Frozen vegetables are doing well, says Marco Bom from manufacturer Ardo. They specialize in frozen vegetables and see a 'very healthy market'. The company is one of the few to grow in area, where possible. Bom: "We work with a permanent group of growers. They are mainly located in North Brabant. For organically grown crops this is Flevoland." Ardo also notices that there is interest from growers.

Several companies have to disappoint growers who have started growing peas or beans, for example, in recent years. "That is very frustrating," admits Bas Bouma of Laarakker Groenteverwerking, who is active in Flevoland for the Limburg company. "Certainly last year we were able to grow a nice area of ​​peas in the polder. The enthusiasm is there again, but buyers do not need larger volumes." The company tries to offer alternatives, but cannot fill the area. This concerns niche products such as capuchins. On sandy soil these are carrots and salsify. "Transport to the factory is a known issue that has always been an issue," says Bouma. "There is a lot of supply, so the buyer then looks at his logistics."

Growers' association De Schakel, which has set up a considerable canning area in Northeast Groningen, must also change its agreements. She informed her growers in a letter. The growers' association is trying to keep the pea area the same as in 2023, but cannot meet the promised growth. She is even shifting part of her pea acreage elsewhere in the Netherlands to the northern province, to accommodate growers. As an alternative, De Schakel offers contract cultivation of green beans or flageolets. The growers' association was asked for a response, but unfortunately could not be reached.

Organic products also lack sales
Organic vegetable cultivation has been faced with stabilization of market demand for much longer. Countries around us are steadily switching to locally grown products and importing fewer Dutch products. The contract prices have therefore been stable for several years. This is a problem for growers, who will mainly see their labor costs increase this year. "Today you pay €30 per hour for temporary workers," says Bouma. "If you want to maintain cultivation, different prices have to be set. We even see that organic growers are switching back to conventional cultivation because of disappointing sales."

Alternatives tricky
In conventional cultivation, the various market parties have managed to keep their contract prices for peas and beans stable this season, after they increased by 2023% to 20% in 30. With a wheat price of €180 per tonne, this results in a more positive balance, although the risks of a vegetable crop are generally also greater. Arable farmers who are looking for a financially attractive rest crop, which is also rewarded in the CAP, are faced with an extremely difficult choice. Flax cultivation is growing again this year, but it also has its limitations. Vegetable crops remain interesting for many growers, but the sales must be there.

Also read: Dutch kidney beans suddenly yield much less