Shift in cultivation areas and areas

The Agricultural Fair North and Central Netherlands (LNCN) again organized the annual Peen Theme Day on Tuesday 14 March. Among other things, the role of retail in the carrot market was discussed. In particular, the critical attitude towards substance use was discussed.

Chairman Mark Brantjes discussed the current carrot market. The price of conventional carrots is still at a cost-effective level. It should be noted that the Emmeloord stock exchange has continued to record a slightly higher price level in recent weeks compared to the listing in Middenmeer. This has to do with transactions originating from the Hogeland in Groningen, which have a higher price for export. The chairman also noted that in terms of acreage, the expansion is mainly taking place in the south and north, where the central Netherlands has a slightly declining trend.

New marketing campaign
Joris Baecke, chairman of the LTO Plant Health working group, sketched a picture of the nature organizations that put pressure on supermarket chains to reduce the use of substances. On July 28, 2016, an agreement was rolled out there between Greenpeace, Albert Heijn and Jumbo, including a 'black list' of 28 substances. Baecke calls it 'a marketing move'. Fortunately, this was toned down later. However, bottlenecks persist. This is superfluous, because the Netherlands amply complies with the rules. The scope that European policy offers for the resources package is currently not being used sufficiently.'
'Retail does not look at the current situation but at the future. It's about getting there', says Baecke. 'That requires adjustments to our plan to take back control. We will start with that after the elections by starting a new marketing campaign.' 

Thinking from the plant
'If we want to be future-proof, we have to think from the plant's perspective,' says Baecke. 'A resilient crop with crop protection as support. That starts with healthy soil, resilient varieties, a focus on microbiology, early-warning systems (disease detection), precision agriculture and green resources. In total, this development will cost 1 billion euros, of which the business community contributes 750 million euros. The remaining 250 million euros will be requested from the government. That amount should be recouped within ten years.' However, this plan has not yet been discussed with NGOs, the nature organisations.

in the chain 
When the boxes of carrots have left the yard, the story ends for most growers. Cees Leijten, who works at Bakker Barendrecht, gives a glimpse into the chain from harvest to the shelf. 80% of the fruit and vegetables are supplied to Ahold. That equates to 1.400 tons of fruit and vegetables per day. For carrots, the company is almost completely dependent on the Noordoostpolder, a total of 100 hectares. More than 4.000 hectares of vegetables are under contract with 150 permanent Dutch growers.

The working method that Bakker uses with Albert Heijn is special. He is in control himself, not the buyer. If it freezes, ten percent more carrots will be delivered. When the summer breaks, more lettuce and cucumbers go to the buyer. On average, the turnover is increased fivefold through bonus promotions. When a tastier carrot variety comes on the market, a switch is made. By making vegetables an exclusive A-brand for AH, more is achieved. In the case of onions, this resulted in ten percent more turnover and volume last year.

Crop protection
Of the 28 substances on Greenpeace's blacklist, 5 are authorized for carrots, 3 of which have actually been used. The list is now getting smaller. For example, Linuron is no longer allowed. Yet Bakker has the vision to work more with organics. For carrots, but also, for example, for onions and Brussels sprouts. This is only possible if the consumer pays a surcharge. Another development is the vertical cultivation of leafy vegetables such as lettuce. However, this should not be called organic, because organic requires soil-bound cultivation.

Ten percent more turnover
The use of ready-made packages has resulted in up to ten percent more turnover in the carrot volume. This is because carrots are used for more dishes. The best Bonus promotion ended the sales volume seven times higher. 'Although Bakker determines what AH sells, the selling price is not a daily negotiation battle,' says Leijten. This requires the entire chain to take action to ultimately make consumers pay more. According to Leijten, this is already working. 'Consumers understand that something extra costs money.'

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.

n.vanderboom@boerenbusiness. Nl

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