Slightly higher contract prices after tough negotiations in the Netherlands

Published 2021년 2월 25일

Tridge summary

The COVID-19 pandemic has significantly impacted the agricultural sector, with retail sales seeing a surge of over 10% while food service sales have suffered. Exports have nearly ceased, leading to a decrease in average sales for industrial vegetables. As the new season approaches, growers are struggling with rising costs and are seeking higher contract prices. However, competition from other crops and pressure from retailers to maintain low prices are challenges. Only beans and carrots have seen a price increase, while organic products prices have surprisingly dropped despite political ambitions. The growers are also facing difficulties in finding seasonal workers due to the pandemic.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As a result of the corona pandemic, sales in food service are clearly lagging behind and sales in retail - with about 10% plus - are doing well above average. Exports have just about disappeared. In short; on average, industrial vegetable sales are lower than normal. In the meantime, the areas must be determined for 2021. Corona cannot be the only excuse for tight margins in cultivation. The margin distribution in the chain has been a point of discussion for many years. Higher contract prices necessary The contracting for the coming season has now progressed a lot, for slightly higher prices on average. Higher contract prices are necessary, because the cost price for growers also rises. Competing crops are lurking, such as grains. “In the usual segment it is quite difficult to fill the desired hectares” explains Mathieu van Beek of Oerlemans Foods. “It just worked out for the coming season, with a 2 to 5% price increase across the board, but I foresee that prices will have to rise ...

Source: Groenten & Fruit