Dutch Tomatoes Lead the Way for Vegetable Export to Germany

The Netherlands is superior in sustainable agriculture, with substantial technological advances and innovations in the agricultural sector. Intensive agricultural production, especially greenhouse vegetable production, gives a good base for exporting agricultural goods. The main markets for fresh vegetable export are Germany, with almost 50% share in export value, followed by the United Kingdom with around 15%, and Poland, Belgium, Denmark, and Italy. From 2016-2020, Dutch tomato exports to Germany increased by almost 10%. For MY 2021/22, Dutch tomato is the number one exported product to Germany.

The rise in tomato prices has led to an increase in the value of exports. The Netherlands can export fresh tomatoes throughout the year, but prices vary depending on the harvest season in surrounding countries. Usually, prices start to fall in February when Spanish tomatoes enter the market. According to European Commission data, the average price of tomatoes was around USD 2.9/kg. The price was affected mainly by production costs and the energy crisis that disrupted greenhouse heating. Before the Russia-Ukraine conflict, fertilizer, and energy price increases pressured farmers' profit margins. The price of fertilizers directly correlates with the price of natural gas, which started rising in August 2021, increasing more than 500% to a record high level in March 2022 of TTF €227.2/MHW. The price of natural gas has been steady at TTF €93.77/MHW.

Another occurrence was the emergence of a virus, the Tomato brown rugose fruit virus (ToBRFV), which has affected greenhouse tomato production. The producers reported that the virus caused a yield reduction of 5-30%. However, measures have been taken to keep the virus under control.

The Dutch greenhouse tomato season is coming to an end, and under normal circumstances, as the open field season approaches, prices should fall due to increased supply. However, the overall decrease in supply caused by various issues such as the energy crisis is supporting the elevated prices. Producers face increased input costs such as fertilizer, energy, pesticides, and fuel, so the high price level will partially offset losses from the previous period. This goes out for farmers that don't rely heavily on energy inputs like natural gas for heating. Germany remains the top destination for tomatoes from the Netherlands, thanks to its proximity and volume of fresh tomatoes it can consume. Due to current developments, the outcome is uncertain, and a challenging year is expected for Dutch tomato growers.