A long season generally bodes well

He and his clients - particularly those in retail and foodservice - are, thus, looking to expand the use of asparagus.

“You can use white, green, peeled, soup, stir fry, or barbecue asparagus, to make the range accessible to everyone. That’s something that needs a bit more work.” Therefore, along with white asparagus, Teboza also grows green and purple varieties. The latter is a niche product in which Will’s buyers are noticeably increasingly interested. “We’re sure this addition to the range is going to grow.” Although overall, asparagus acreage is shrinking, Teboza is expanding, and, for Will, sustainability is an important aspect of this. “We’ve grown sustainably, which also ensures a sustainable, not too big and not too small, supply for our customers,” he concludes.

Royal ZON assumes that the Dutch asparagus acreage will decrease further, which offers opportunities to young growers

Rick Mengers, Royal ZON: A long season generally bodes well

“It’s going well,” is how Royal Zon’s Product Manager Rick Mengers described the asparagus market at the end of March. Royal Zon is a Dutch cooperative focused on (inter)national fruit and vegetable sales. Rick says the sunny days in March are making for excellent quality asparagus. The nights, which were still quite cold, caused a somewhat lower production, which Rick expected. That, and the traditionally higher demand around Easter, will make prices climb considerably. Rick, too, is optimistic about the remainder of the season’s outlook. “We started early this year, and, generally, a long season is a good one. I’m not saying we’re going to equal last year’s exceptionally good season, but, at the moment, it doesn’t look bad.”

SEASONAL PRODUCT

ZON also sees promising long-term market developments for these stem vegetables. “As long as it remains a nice seasonal vegetable, shoppers are inclined to pay a little more for asparagus than for a yearround product.” That is why Rick advocates keeping the asparagus season clearly defined. That seasonal market offers definite chances for this vegetable and its growers. For example, Dutch asparagus growers are, on average, quite old, he says. So, with a lack of succession, asparagus acreage is expected to shrink soon, which offers more expansion opportunities for the younger growers. An increasing interest in asparagus characterizes the consumer market. ZON, Teboza, and the Greenery are committed to this with the Dutch Asparagus Center. “Together, we’re paving the way with asparagus; especially in some areas in the Netherlands, where people aren’t as familiar with asparagus, this vegetable is being increasingly embraced.”

ZON sees consumer interest in green asparagus increasing

GREEN ASPARAGUS GAINING POPULARITY

Social media is another way these stem vegetables are being introduced to consumers, as is suggesting new and other uses, including creating new recipes. Green asparagus is becoming more popular with Dutch people. Convenience is also playing a bigger role again after consumers had more time to peel the asparagus themselves during the pandemic. Rick says ten to 15 percent of the asparagus is supplied peeled, and he expects that percentage to increase further this year. When it comes to green asparagus, he says the acreage in the Netherlands is not expanding in line with demand. That is because, since it has far lower production per hectare, it is not very profitable to cultivate green asparagus in that country.

SUPPLY AND DEMAND

According to Rick, current labour demands are being met in the asparagus sector. “The somewhat larger growers generally have their contacts in the seasonal workers’ home countries and can fill that demand quite well.” He does, however, see that costs are rising. “Everything’s getting pricier.” The product manager also notes the difficulty of passing on these rising costs. “You’re dealing with a supply and demand market, so quite a few growers are hurting at the moment.”

“It’s harder to discount these rising costs in daily prices - which are purely a matter of supply and demand - than in contracts, where these costs have been compensated reasonably successfully.” Rick adds that if high, rising costs persist, acreage could shrink. Those increased costs are why growers are using as little heating as possible. “I’m not saying growers won’t use a little extra heating soon, but they’re generally using it sparingly. Where it’s not needed, it’s not used.”

MECHANIZATION IS THE FUTURE

Rick considers the high labour costs and the difficulties sometimes encountered in filling positions as the driving force behind mechanizing the harvesting process. “Mechanization will remain a focal point in the years ahead. There’s still considerable progress to be made, but that will eventually lead to using harvesting robots.” The breeding process has to evolve, too, if these robots are going to be used, Rick points out. For example, it’s important to consider how the asparagus is removed from the soil. “There should be as much space as possible between the stalks, so, when one asparagus is stabbed, the next one is not damaged,” he concludes. Rick sees a new generation of asparagus varieties emerging. These focus on early production, better quality with good head closure, and good volumes.

rick.mengers@royalzon.com

Banding for Sustainability Sustainability

› Printing and coding while banding › Multiple band widths on 1 machine › 100% recyclable paper band solutions

T +31 (0)348 431520 E info@bandall.com I +31 (0)348 431520 E info@bandall.com bandall.com ›

The specialists of the law firm Wille Donker Advocaten know what is happening in the world of fresh produce.

In this article, they answer four legal questions on everyone’s mind in the market these days.

Can price increases be passed on to the customer? There is no statutory basis for index-linking prices. A change to the agreement or suspending the obligation to deliver can be invoked in special circumstances only. It is therefore relevant whether the agreement contains express or tacit arrangements on price increases. The date on which the agreement is concluded is also important. A supplier who signs an agreement now must consider uncertainties in container transport and rising prices. The mere fact that price increases make it less favourable for the supplier to perform the agreement is not sufficient reason for passing on the price increases or terminating the agreement. The price arrangements might have to be adjusted only if the price increase makes it unreasonable to hold the supplier to its obligations. But that is the exception rather than the rule. It is therefore prudent to agree how to deal with price increases.

When can force majeure be invoked? The law stipulates that force majeure exists if a party cannot fulfil an obligation because of a circumstance for which they are not to blame or for which they do not bear the risk. Specific examples of this are the blockade of the Suez Canal and the COVID-19 pandemic. Because of these exceptional circumstances, a party can no longer honour their agreements but can do nothing about it. In these special situations, the commitments that have been made are cancelled. Foreseeable hindrances such as strikes and financial difficulties seldom justify invoking force majeure. If the Vienna Sales Convention applies (which is often the case if not explicitly excluded and the supplier or importer is based abroad), invoking force majeure is subject to a different criterion, namely whether the circumstance is beyond a party’s control. The parties may make further arrangements in the contract about which situations are considered force majeure. And the consequences of force majeure can be agreed contractually. For example, it can be agreed that price increases exceeding a certain percentage constitute a force majeure situation. It is thus advisable to make these arrangements.

Does a minimum guaranteed price (MGP) also apply if the quality is inadequate? If it is established that the quality is inadequate, the importer can generally argue that the MGP no longer applies. This relates to the conditional nature of the MGP. The importer can also fully or partially terminate the agreement in such a case. But which price then applies is not as simple to answer. It is always advisable to explicitly arrange for such a situation. Not only to prevent any debate, but also to determine the payment that the supplier is entitled to receive.

What factors need to be considered when the other party you are dealing with is foreign? It is prudent to check whether the other party can fulfil its obligations. The risk of non-performance can be limited by agreeing that the other party must first perform before you make payment or provide security (e.g. a bank guarantee). It is also prudent to agree which law will apply to the agreement and which court has jurisdiction to deal with a dispute. If no arrangements are made, the law of the country where the supplier has its registered office will generally apply. This gives rise to many complications, which can be avoided by agreeing that only Dutch courts have jurisdiction to rule on disputes.

Questions? We’re happy to assist you further These answers are general and based on Dutch law. The specialists of the law firm Wille Donker Advocaten will gladly give advice tailored to your situation. For this purpose, please contact Henk-Jan Ligtenberg on +31 (0) 172 44 24 17 or at ligtenberg@willedonker.nl.