Carrot cultivation faces major challenges. The current season and last year's are leaving their mark on the carrots. As with onions, the Netherlands is a gap filler in the market. However, this position is increasingly difficult to maintain with carrots. What perspectives are there?
The area of winter carrots reached a peak of 2016 hectares in 6.644, according to figures from Statistics Netherlands. Provisional figures for 2017 arrive at a slightly lower level of 6.479 hectares. Since 2011, the area has exceeded 6.000 hectares. Only in 2015 did it dip even further. In recent years, cultivation has experienced peaks, but also troughs. The 2016/2017 and 2017/2018 seasons are leaving their mark on the carrot market.
Stable, low price
Since week 44, Emmeloord has been quoting €6 to €7,50 per 100 kilos for both B-carrot and field-grown carrot. In Middenmeer that is €4 to €5,50 for B/C carrots and C/D carrots. This means that the new season starts at a stable, but low level. Last season Emmeloord started with a price level around €8 to €8,75 per 100 kilos. It never went above €11.
"The majority of our winter carrots are exported. However, the Netherlands can only export if there are gaps elsewhere," says business specialist Erik Arts of accounting firm Countus. "Of all our exports, approximately 50% goes to Belgium and 25% to Germany. There is always a German hand in the carrot trade. Exports to Eastern Europe also go via Germany. Belgian vegetable processors also export part of the Dutch carrots to our eastern neighbors."
Germany has significantly expanded the cultivation of winter carrots. "Gaps in the market are therefore less likely to arise. If demand arises in Eastern Europe, it will first be filled with German carrots," Arts explains. In 2016, the total German area was 11.200 hectares. In 2015, the area briefly dipped to 9.600 hectares; 10 years earlier this was 10.000 hectares. Many carrots are grown, especially in the border region. North Rhine-Westphalia is the most important carrot state with over 2.800 hectares.
Shortage of land
Developments in the area are also noticeable in import and export. When the area decreased significantly in 2015, 265.000 tons were imported. With the record area 1 year later, this was 239.000 tons. Own production increased from 527.000 tons in 2015 to 642.000 tons in 2016. "Growth continues, but the availability of land is a serious threat," writes seed supplier Bejo in their Wortelmagazine.
"Renting land is very expensive, which requires a tight crop rotation and allows nematodes to multiply quickly. Because many carrots are grown in a small area, there is a greater risk of damage from the carrot fly. Most plots do not have irrigation options. Growers are increasingly larger. They often clean and package the carrots themselves. The domestic market is dominated by the large supermarket chains."
Despite high quality requirements, German growers have the advantage that sales are close to home and they prefer local products over imports. Even when the price is higher, like last year. "Last year there was a period when the German price of carrots was around €20 per 100 kilos. The Dutch carrot could be bought for less than €10, but was not bought," says Arts. "Organic cultivation relies even more on Germany. However, we also see a preference for local products emerging there."
More contract farming
With a lack of gaps in the market, Arts sees the volatile nature of carrot sales disappearing. "This is why cultivation has grown, but that role is changing. It's the same with onions. I see that there is still demand for product from the heavy soil. It can be stored until May or June. A lot is done with contracts are worked off the land. The price level is between €8 and €9 per 100 kilos."
Opportunities in France
The French market offers a glimmer of hope. The area is shrinking, which may cause gaps in the supply. "In 2016, the total French area was almost 13.000 hectares. That was still 2000 hectares in 17.000," says Yannick Chevray of Bejo in France. "Many winter vegetables have been under pressure for a long time. This is now also the case for carrots. I expect a further decline in the future," he says in Bejo's Carrot magazine.
Arts sees another opportunity for Dutch growers: "In France and Germany, a lot of carrots are also 'stored' on the land. If there is a period in which harvesting cannot take place, there are still options for buyers to come to us for carrots. It is It is difficult to estimate whether this will make up for the cost price in the coming years. The impression is also that good quality carrots always find a destination."