‘TRANSPARENCY IN THE CHAIN IS GETTING MORE AND MORE IMPORTANT’
CONTRACT PRODUCTION OFFERS STABILITY FOR THE FARMERS THE LAARAKKER GROUP WORKS WITH CONTRACT GROWERS TO SUPPLY RAW MATERIALS AND SEMI-FINISHED PRODUCTS FOR THE FROZEN AND CANNING INDUSTRY IN THE NETHERLANDS AND BEYOND. CONTRACT PRODUCTION GIVES GROWERS STABILITY. “WE PRODUCE WHAT THE MARKET DEMANDS,” SAYS AD LIEVENSE. Dutch frozen vegetables really get around. Ad Lievense of the Laarakker group often visits the southwestern US with his American girlfriend. There, he often runs across the fruits of his labours. “At the supermarket in Arizona, I see vegetables in the freezer that our growers grew in the Netherlands. Cool, right?” In the US, demand for organic vegetables outstrips domestic production, he explains. Growing opportunities are limited because of climate conditions and because suitable land and water are scarce. Hence, the US has become a significant part of the Dutch export market. The Laarakker group knows how to make the most of such opportunities. Based in the southern Dutch town of Well, the business specializes in the cultivation, processing and sale of open-field vegetables, primarily for the frozen and canning industry (see box).
Organic growth continues Of Laarakker’s production volume, 10% is organic, and that 10% accounts for more than 20% of revenues. The organic portion of the business has grown fast in recent years, says Lievense, who’s the regular contact person for organic contract growers. “I’ve been working here for seven years, and in that time the volume has doubled. And it’s still growing, although I don’t expect it to double again in another seven years.”
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He expects growth to level off because of the price difference between organic and conventional produce, he says. “I think in the shops a lot of consumers, when they’re facing a choice, do choose based on price.” The cost of cultivation is the limiting factor when it comes to significantly expanding the amount of organic farmland. Weed control is a particular issue, since labour is scarce.
An increasingly important trend Laarakker supports its contract growers with intensive cultivation advice. It carefully coordinates land use, manuring and crop protection. That means the processor can guarantee its customers in the US and Europe that production will meet their requirements. “Transparency in the chain is a trend that’s getting more and more important for sales,” Lievense says. “Every one of our shipments can be traced to the plots where the produce was grown.” Laarakker’s intensive guidance helps growers to increase profits on their crops.
Experiments Laarakker regularly conducts field trials and experiments in areas such as weed control. “We look for ways to improve technical solutions such as mechanical hoeing,” Lievense says. “We also
