5 questions Gijsbrecht Gunter

'Always go for the best onion quality'

10 January 2017 - Niels van der Boom

On Tuesday January 10, a partnership will start between 55 companies within the Dutch onion sector. This is what GroentenFruit Huis calls the Public-Private Partnership (PPP) that makes a multi-year chain-wide research program possible. It focuses on three pillars: starting material, fertilization and diseases & pests. Chairman and onion star Gijsbrecht Gunter about the research programme.

With the multi-year research programme, the collaborating parties, including the Onion Committee of the GroentenFruit Huis and the Holland Onion Association, hope to raise the quality of the Dutch onion to a higher level. The aim is to provide growers with tools and knowledge with which they are able to increase quality and thus their export position.

The partnership between 55 companies is unique

With half a billion euros in turnover and exports to 120 countries, the Netherlands is the largest onion exporter worldwide. To maintain that position, quality is crucial. The entire chain from seed producer to exporter is involved in the multi-year research project. The total costs amount to approximately 2 million euros, of which 650.000 euros has been allocated from the TKI (Top Consortia for Knowledge and Innovation). The study will last at least three years, but the parties intend to continue the program if it is successful. Chairman Gijsbrecht Gunter about the how and why.

The onion sector is joining forces. Isn't this the job of BO-Akkerbouw?
'It is precisely the sector's task to tackle this itself. BO arable farming represents the interests of arable farmers in the broadest sense and focuses directly on the grower. The Public-Private Partnership in the onion sector also focuses on companies themselves. We have been working on this for 2 years. The variety list also falls under this. For the time being, we are focusing on three pillars: starting material, fertilization and diseases & pests. A working group is active within each pillar. Important topics are fusarium, head rot, butt cracks, but the influence of fertilizers, trace elements and harvest time on quality is also examined. All companies participate on a voluntary basis.'

The research focuses mainly on technical cultivation measures. Isn't part of the problem with trading? Growers sometimes believe that the onion trade makes too little (price) distinction in quality, so that gross kilos are used.
'I think that is unfair. A difference of 3 cents per kilo on the regional exchanges is not uncommon. That's the difference in quality. In practice, that difference may be 5 cents, but peaks down and up are not taken into account. With 60 tons of onions you are talking about 1.800 euros per hectare price difference. If that's not a quality premium? This is insufficiently realized. The same goes for GlobalGap. They are also critical of that. If we analyze transactions made over the past 7 years, it appears that GlobalGap certified onions yield an average of 6 euros more per tonne. With an average of 10 hectares of onions – 600 tons – you are talking about a EUR 3.600 additional yield. Compare that to a cost of 600 euros plus 12 hours of work. That gives me an hourly rate of 250 euros. If you are not satisfied with that, you should become a lawyer, not a farmer. When trade is difficult, certified onions have an extra selling point. Partly because growers with good quality onions are more often certified. Growers are too much of a producer, while that should be a sales-oriented entrepreneur. That starts with quality. Always go for the best, the demands only increase!'

If the onion sector does not take action, what can the Netherlands expect?
'The quality is our asset. We have good logistics, but quality comes first. To maintain and increase leadership, chain-wide research is necessary. Only in this way can we lift the sector to a higher level. All companies need to get that message across. It's not just about the research pillar. How does the grower handle it? That starts with good communication by the collaborating parties.'

Isn't the export record just statistical?

If you have to make a top five of the best quality onions worldwide, is the Netherlands at the top or are we being surpassed by other countries?
'In terms of the 'long day onion', the Netherlands is at the top. Only we supply quality onions all year round. If you look purely at the new harvest, a country like New Zealand has a better position for a short period. That is why the onion trade must also be convinced of the Dutch quality. If a Dutch sorter buys onions abroad, he is obliged to state this on the label. If the quality is better than a Dutch product, then we run the risk of buyers saying give me those German or French onions. That will also happen this season. Frugiventa therefore argues for an indication of origin in the export figures. This way we can show whether the current export record is not just a statistical record. In addition, containers were sometimes overloaded in the past. Figures from the past cannot be compared one-to-one with today. It is impossible to say how many foreign onions there are in the Dutch export book, but past experience shows that Germany may bring in as much as 40.000 tons.'

The MH discussion currently dominates the onion sector. Is this topic also on the agenda?
'MH is inextricably linked to quality. The available alternatives are not sufficient. There is no remedy that can match the effect of MH. MH is completely separate from the collaboration, but the onion sector is lobbying strongly. Research programs are already underway to find MH replacements. Perhaps this is a task for the future. For example in collaboration with suppliers.'

You will get an extensive view of the onion sector in the Boerenbusiness Onion market analysis.

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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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