Berrybrothers: “Greenhouse cultivation is certainly worth it in the spring and fall”

Freshness, quality, flavour, and local, sustainable cultivation all play an important role in that. That will continue to be the case, but there won’t suddenly be so much demand for soft fruit from greenhouse cultivation that that acreage has to expand considerably.”

RISING DEMAND

Still, Miguel does see opportunities in soft fruit in general. “There’s growth, but we all know that will reach a ceiling at some point.” He points out that the strawberry market has not grown for several years. “For the last 15 years, Belgians have each eaten about 1.7 kilos of fresh strawberries a year.” However, blueberry, raspberry, blackberry, gooseberry, and redcurrant demand is still on the rise. In that regard, Miguel mentions rising costs making for challenging conditions.

“It’s evolving so fast and is so tenuous; nobody knows where it will end.” He says production and packaging costs, too, have increased significantly in recent years, especially lately. “Our product is getting costlier, but can we sell it for more? And will our clients be up to paying that higher price? The 100 euros people have to spend this year is worth less than that same 100 euros from last year. Everyone has to make their own choices about that. So, this year, we should see a fairly unpredictable shift.”

BALANCING ACT

Nevertheless, BelOrta aims to maintain and increase the rising soft fruit consumption. That includes looking at new varieties and running marketing campaigns highlighting both local origin awareness and the fruit’s culinary possibilities. “When choosing varieties, the goal is to extend the Belgian season, where possible. And we select varieties based on flavour and improved shelf life. We’ve also taken huge steps in recent years regarding sustainable, recognizable packaging,” says Miguel. For this, BelOrta focuses strongly on its local market. “If you can’t score at home, how will you excel in your export market?”

Besides that home market, exports still play a significant role; BelOrta exports around 50% of its strawberries, blackberries, and raspberries to surrounding European countries. Thirty to forty percent of their redcurrants find their way out of Belgium. “Of course, it’s good to export, and you have to deal with all sorts of other things then. We have an excellent reputation in terms of flavour, quality, and sustainable production methods, but you lose the advantage of local production. And because of transport, there are additional costs too. We have to keep a close eye on that; it’s a balancing act,″ Miguel concludes.

Miguel.Demaeght@belorta.be

Berrybrothers: “Greenhouse cultivation is certainly worth it in the spring and fall”

“As a company, you’re always trying to find space in the market,” says Nijs van Zuilen, responsible for commerce at Berrybrothers. This Dutch company cultivates, packages, and sells berries. Nijs sees that space in the growing soft fruit under glass, among other things. He explains that Berrybrothers’ goal is to start the greenhouse cultivation season as early as it can and continue for as long as possible. Originally intended to meet the challenge of adding to seasonal work, the market - which likes buying locally grown soft fruit year-round - has since embraced this type of farming. “Short-term seasonal contracts used to be very common, but that’s changed due to legislation, housing issues, and recruitment and selection. And a company you want to be able to offer your staff more long-term work.”

REDCURRANTS YEAR-ROUND

Redcurrants are one of Berrybrothers’ top products grown under glass. “Some of our clients buy these year-round from us, which is interesting for us, from a labour standpoint.” Nijs says the first of these greenhouse berries are picked in the first week of May, with tunnel crop harvesting starting in roughly early June. The fruit grown under rain canopies follows. “In August, we have a big harvest peak, some of which we store in ULO cells until early April.” In April, they supplement these redcurrant supplies with imports from Chile.

Nijs says it’s interesting but costly to grow redcurrants under glass. “You force the plant to grow, thus losing kilos. It’s an expensive product with a small market. But it’s vital to us to meet that year-round demand.” The berry grower is experimenting with growing red currants in containers. Then, when the greenhouse crop, which lasts only five weeks, is done, the redcurrant bushes can be relocated outside and the greenhouse used for a fall raspberry or blackberry crop. “Then one greenhouse can provide two harvests per year, which is much better, yield-wise.”

DUTCH PRODUCT FOR AS LONG AS POSSIBLE

The focus on raspberries and blackberries is not random. The demand for Dutch greenhouse-grown raspberries and blackberries is climbing. “Our buyers want local produce for as long as possible. Greenhouse cultivation is certainly worth it in the spring and fall.” That is why Berrybrothers is starting autumn raspberry cultivation under glass this year, alongside spring cultivation. This berry grower is not concerned that high cultivation costs will thwart these plans. “We supply higher-end greengrocers, the hospitality industry, and wholesale markets.”

“There’s generally a little more wriggle room for prices. We have a good quality product, and customers are often willing to pay for that.” There is still a lot of interest in local, tasty, quality goods, says Nijs. But he also points out that it may be cheaper to import rather than grow berries locally. But such a degree of dependence is not without disadvantages - less control over the product, its quality, and pricing. “Local cultivation provides these benefits. Growing wherever the market is, obviously, most efficient.”

Berrybrothers grows, among other things, raspberries and red currants under glass

COST PRICE

Berrybrothers focuses on harvesting greenhouse soft fruit from May when the days begin to lengthen, temperatures start rising, and less energy is needed than earlier in the season. “That means we have to heat less, which takes up less of the cost price.” Nonetheless, the high costs have an impact. “It affects the cost price, that’s for sure, and we have to pass that on to our clients.” The high costs are why Berrybrothers doesn’t see the point of doing greenhouse farming from December to April.

“With little natural light and low outside temperatures, that would cost too much, gas and energy-wise. The countries in southern Europe can do that more cheaply.” Nijs notes that even then, there is no need to grow all berries in greenhouses. Blueberries, for instance, do not need to be cultivated under glass. “You can grow those anywhere, and they’re always available. Beautiful blueberries that all cost the same, or even less, come from all over the world. So, there’s no room in the market to bring the Dutch blueberry season forward by growing these berries in greenhouses,” Nijs concludes.

n.vanzuilen@berrybrothers.nl

Wholesale of fruit and vegetables Tongersesteenweg 3050 - B-3800 Sint-Truiden, België info@cuvelierfruit.be ¬ Yves Cuvelier -  +32 472 20 24 00

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Wim van de Ree, Nedato’s general manager: “Will high grain prices mean lower potato production?”

Ukraine is considered Europe’s granary. At present, that country cannot export its stock, and Ukrainian farmers will sow hardly any grain. It is, thus, expected that growers in the rest of Europe, attracted by the high prices, will reserve part of their acreage for grain, at the expense of other crops, like potatoes. “Still, the potato acreage hasn’t shrunk too much,” begins Wim van de Ree, Dutch potato cooperative Nedato’s general manager.

“The war in Ukraine simply reinforces the factors that led to the Dutch potato area decreasing by six percent a year ago. That decline began in the spring of 2021 when potato growers reacted strongly to earning too little to cover increased production costs. They also face higher risks, like dry, hot, or wet weather.

Indeed, in December 2020 and January 2021, industrial potato contract prices had fallen yet again - something growers were no longer prepared to accept. The chain’s profit margin distribution has become distorted.”

Since the global pandemic began, not only diesel prices but those of machinery, parts, pesticides, and sprout inhibitors - especially since 2020, after CIPC was banned - have been steadily climbing. Confronted with falling contract prices, Northwest European growers decided to plant fewer potatoes. In 2021, that was six percent less of approximately 27 million tons.

IN NORTHERN FRANCE, GROWERS OPTED FOR WINTER WHEAT

“Prices rose for a second time when, in August last year, the economy began recovering, and demand in all sectors soared. The whole world needed transport resources and energy, but scarcity in those markets caused prices to climb, which, in turn, pushed up the prices of all types of raw materials. In September/ October, growers could still choose to sow winter wheat instead of keeping the lots for potato cultivation. Many growers, especially in northern France, saw more benefit in wheat at that time,” Wim continues.

FRENCH FRY COMPANIES RAISING CONTRACT PRICES

As a result, in addition to the previous year’s decline, 2022’s potato acreage is under pressure. “French fry company managers began worrying about raw material availability. That’s new to them because, for years, there had always been an oversupply. They decided to raise contract prices to encourage growers to plant potatoes. That €0.03 to €0.04 more translates to a 20-25% increase; something that can safely be called unprecedented.”

“The plan worked reasonably well. At those prices, many growers were willing, but certainly not very happy, to plant ware potatoes. But then Russia invaded Ukraine. The diesel price rose to €2.60/ liter, and fertilizer prices skyrocketed. That initial increase in contract prices no longer suited the new situation. And growers still had time to choose summer grains or corn instead of potatoes, which several did,” Wim explains.

SHIFT TO FRY POTATOES

Given Nedato’s seed potato figures and those it gleaned from other companies, Wim thinks the Dutch 2022 potato acreage will be, at best, the same as last year’s; it

Global food prices are the highest they have ever been, says the FAO - The United Nations’ Food and Agriculture Organization. The FAO Food Price Index averaged 159.3 points in March. That is up 12.6% from February when the index had already reached its highest level since its inception in 1990. The index includes vegetable oil, grains, dairy, sugar, and meat. Grain and vegetable oil prices, in particular, have shot up.

In March, the FAO price index for vegetable oil averaged 248.6 points, 46.9 points (23.2%) higher than in February, thus reaching a new record. Higher sunflower, palm, soybean, and rapeseed oil prices caused this sharp rise in the index. International sunflower oil listing rose significantly in March, fuelled by reduced export stocks due to the ongoing conflict in the Black Sea region.

Sunflower oil supplies led to a rise in global import demands, and, thanks to that, palm, soybean, and rapeseed oil prices also increased considerably. Global palm oil values received additional support from continued supply tightness in its major producing countries. However, concerns about reduced export opportunities in South America underpinned soybean oil prices. Interestingly, crude oil’s higher, volatile value supported international vegetable oil prices.

The FAO grain price index reached an average of 170.1 points in March, increasing 24.9 points (17.1%) from February, again, the highest since 1990. That increase reflects a worldwide rise in wheat and coarse grain prices. Those increases are largely caused by conflict-related export disruptions from Ukraine and, to a lesser extent, the Russian Federation. Over the past three years, Russia and Ukraine were good for about 30% and 20% of global grain and corn exports. The expected loss of exports from the Black Sea region exacerbated already tight global wheat availability. Add in concerns about crop conditions in the United States of America (US), and world wheat prices rose sharply, by 19.7% in March. Corn prices increased by 19.1%.

After climbing 20.4% in March, the world’s coarse grain prices reached a record high, with corn, barley, and sorghum prices all reaching their highest levels since 1990. Significantly reduced corn export expectations from Ukraine, a major exporter, on top of high energy and input costs, laid the foundation for the 19.1% monthon-month world corn price increase. That market’s strength affected other coarse grains, with sorghum prices rising 17.3%. Supply uncertainties put further pressure on already tight barley markets, pushing those prices up 27.1% from February.

could even shrink a bit more. “That means 94%, or less, of 2021’s area. But things are changing. In the north of the country, for instance, growers will cultivate more fry potatoes at the expense of starch potatoes, and in the southwest, you see the same trend, but at the expense of seed potatoes. Export potatoes, too, are losing out in favour of french fry production. These aren’t staggering numbers, of course, but it seems growers are using more acreage for fry potatoes.”

CORN FARMING IS MORE PROFITABLE

Wim, however, immediately comments on this finding: “In Belgium, several smaller companies, who normally lease their land to potato growers, now seem to be planting corn on those plots themselves. That’s partly due to a change in Belgian subsidy regulations - the lessor, not the lessee, must apply for and therefore receive grants - and partly because corn yields currently outweigh the rental property income. That affects what is happening in parts of the Netherlands, where less land is available for potato growers. So, famers choosing to grow corn in those areas negate the positive trend of more fry potato hectares in the North and Southwest of the Netherlands.”

CHAIN MARGIN REDISTRIBUTION NEEDED

It, thus, seems that, for the coming season, the potato market’s dynamic will be well balanced between supply and demand. None of the previous years’ overproduction is expected. That forms a basis for a healthy market and is a good starting position for growers. “That’s good news. Hopefully, the chain’s margins can now be redistributed. But that means processing companies, as well as the consumer market, will have to follow that narrative. I’m hopeful because this is slowly happening already. Store prices for pre-fried French fries are already rising. It seems people have realized that growers have to enjoy some of the profits.”

CONTRACT PRICES UPDATE

According to Wim, August and September will be another crucial period for the potato market. “Then, northwest European farmers must decide between sowing winter wheat or keeping the acreage for potatoes. And that time is almost upon us, just after the 2022 harvest. Potato buyers will feel pressured into sharing what 2023 contract prices might be, something that usually only happens at Christmas. If wheat prices remain good, many growers will be tempted to sow winter wheat soon. And the french fry industry could end up in a real raw material shortage situation. We could expect a further contract price update in September.” High food prices might spell bad news for Joe Public, but that shows it is time for food production to get back to the top of the agenda. The production and market disruption in Russia and Ukraine are massively affecting food production and supplies worldwide. People must refocus their attention on actively supporting the actors that meet their primary needs. And that inevitably means valuing the sector that feeds the world. “Food production’s importance is back in the picture. That, at least, is a bright spot in these dark times,” concludes Wim.

wvanderee@nedato.nl