The Partnership news and views from Enza Zaden
Opportunities in Russia Ode to the onion 02 2012
Breeding at its best
Partners in lettuce
Welcome to the first
Product
16 Collumn
News & Events • Going green • Fruit Logistica: the power of creativity • Winning The Tuinbouw Ondernemersprijs
Ode to the onion The onion is one of the most popular vegetables in the world. The product and its market explained.
Selection Joep Lambalk, Managing Director Enza Zaden Research & Development B.V., shares his vision on the concept of selection.
Journey of the seed
Mutual trust
Let’s follow the path taken by the seed to get an idea what is involved when developing new varieties.
The Danish, Swedish customer Weibulls Horto gives its customers solutions that will improve their economical results.
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Product
Partnership
26 Marketing
30 In Focus
2 | The Partnership
Modern technologies and expertise result in a more efficient breeding process. What does it involve and how does it work?
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Enza Zaden Export B.V.
Breeding at its very best
20 Product
Director
For AG Tohum investment, knowhow and dedication are the keys of success that also secures the years of corporate relationship.
Trends
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Rob Keene
Since the last 20 years the Russian market develops rapidly. What are the opportunities and what is needed for success?
Markets
In Focus
We wish you every success in 2012 together with Enza Zaden vegetable seeds!
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Following on from our first issue of ‘The Partnership’ last year, sent only to a restricted test circulation, we are now pleased to be able to send this second edition to a much wider audience, as well as make it available as a loose copy. If you know of anyone else who would like to receive it, please send us their name and dispatch address.
Trends
Articles and editorial for ‘The Partnership’ come from Enza Zaden colleagues as well as many contacts working for our customers. All are written freely and with a will to bring something new and exciting to the reader. It is the objective to create as much of an international feel and platform to the magazine as is possible.
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New, outstanding products are the lifeblood of the future of our businesses, together we dedicate an enormous amount of time and energy into breeding, testing and marketing new varieties with added value for the grower, distribution chain and consumer alike. This ‘The Partnership’ issue shows examples of how we are always able to keep one step ahead of our major competitors!
A long lasting and successful partnership
Partnership
It continues to be our aim to strengthen relationships with all our customers, building together a strong position for Enza Zaden vegetable seed products in all the markets we are working in. Since the inception of the company, the Enza Zaden Export business has grown quickly, making it now the powerhouse for growth of the Enza Zaden group as a whole.
The Russian market offers opportunities
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‘The Partnership’ is the magazine providing you with information and ideas from the Enza Zaden world of vegetable seeds. Articles to keep you in tune with new developments, and editorial to let you know about forthcoming events and activities. Our aim continues to bring to your attention a mixture of topics with relevance and actuality.
4 Markets
‘The Partnership’ edition of 2012
Partners in lettuce The whole fresh produce chain thrives to satisfy the consumer. Seed companies have a key role in this.
News & Calendar • The wonder world of tomato varieties • Finding Enza Zaden at events around the world
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Partnership
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Trends
In Focus
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The Partnership | 3
The Russian market offers opportunities
Russia, officially known as the Russian Federation,
is insufficient to feed the more than 141 million
has many geographical areas with varying
Russians. Moreover, in recent years the Russian
climates. It is the largest country in the world, yet
market has shown an enormous increase in the
agriculture is limited to only ten per cent of its total
consumption of vegetables, even in the current
land area. Sixty per cent of this is earmarked for
economic crisis. Russia is an important export
horticulture. Consequently horticultural production
market that offers many opportunities.
4 | The Partnership
Markets
It is certainly not just because of its huge population that Russia has become an emerging export market. The collapse of the Soviet Union in 1991 had an enormous impact; the closed Russian economy became more accessible and the free market economy was given the opportunity to develop. The result? Both imports and exports rose significantly. The median household income in Russia has been growing gradually, causing the demand for food to increase further; particularly the demand for fruit and vegetables. Local producers were not able to meet the growing demand for fresh produce, causing further recourse to the vegetable and fruit exports, mainly from the Netherlands, Spain, Israel, Turkey, the Ukraine, Azerbaijan, Belarus and the Middle East. Yet a further catch-up effort is needed to match the annual per capita consumption of fruit and vegetables to that of the EU member states. For comparison: 43 kilos in Russia compared to an average of 146 kilos in the EU member states. One of the causes for this is the huge divide between sections of the population with a high and a low income.
Changing eating habits The developments of 1991 have not only had an effect on the economy, but also on social life. Slowly but surely Russia has become more westernised through various external influences. For example, more and more Russian consumers were introduced to foreign products and dishes, as they were increasingly able to travel abroad and because the country has become more open. “Cabbage, tomatoes, carrots, onions and cucumbers are traditionally the main products in this market,” says Oleg Gladouniak, Region Manager Eastern Europe at Enza Zaden Export B.V. “Ten years ago many different types of lettuce, rocket salad, endive, broccoli and leeks
were virtually unknown, but through influences from other countries, the demand for new products such as vine and cherry tomatoes, various types of herbs and sweet peppers is increasing”. For example, at the beginning of August 2011, the media reported that the import of sweet peppers was expected to reach record levels last year: up from 120 to 135 thousand tonnes. Yet in terms of eating habits these developments do not mean that Russia has fully adjusted itself to the Western-European consumer's habits. Russian consumers still prefer large-sized fruit with an intense colour such as (beef) tomatoes or radishes. Even the pickling cucumbers are a perfect example of this. “This is the most popular cucumber in the country. The fruits are small, approximately seven to ten centimetres long and 2.5 centimetres thick. In comparison, regular cucumbers are on average 25 to 38 cm long.” What has become more obvious since the collapse of the Soviet Union is the disparity between the eating habits of the more affluent city dwellers and people in rural areas. City dwellers increasingly want the full range all year round and are prepared to pay for it; so no longer radishes only in spring. Imports can fulfil this need. On top of that, prosperous Russians, influenced by the West, want more fresh and healthier vegetables whole year round. The Russians in the country do not have this luxurious option and are primarily dependent on the seasonal products they grow themselves or can buy in local supermarkets or at markets.
The Partnership | 5
Growing method 75% of growers in Russia cultivate their vegetables in plastic tunnels, 20% outdoors and 5% in heated greenhouses.
MarketinginR Fresh Produce
Like any other market in the world, Russia has its own characteristics. The enormous geographical distances, huge differences, the hundreds of thousands of small and medium-sized growers spread out all over the production areas and the many seed merchants and regional dealers. Gladouniak: “We need to invest heavily to make this market more aware of the Enza Zaden brand, by distributing information effectively among as many customers as possible and by communicating about our products and the new varieties. There are various marketing tools to assist us with this. As from this year we have erected billboards in the three major production areas in southern Russia. We took this initiative together with our official and exclusive importer Agroprom-MDT and with the local sub-distributors that sell our seeds in the major regions. To enhance our chances of being successful as a newcomer to the Russian market, it is important we have a reliable partner or agent; they know the market well, can find the way around the maze of official rules and regulations and have the contacts and a well-developed dealer network.�
Oleg Gladouniak | Region Manager Eastern Europe
6 | The Partnership
Markets
Russia n
Billboards are an ideal promotional expression, especially in a diverse country such as Russia. And it works, as the sub-dealer in the Rostov region mentioned recently. Since the billboards have been placed, twice as many growers have called for information about the different varieties. Gladouniak emphasises that billboards are only one of the media used by Enza Zaden in this country. Seminars and field days are another strong marketing tool. During these events growers are introduced to the company, are informed about the new varieties on the market and the results of trials in the different regions. And not only for growers; this platform has a very strong added value for the rest of the chain too. Gladouniak: “It is an ideal platform for investigating what is happening in the market because this is where many of the parties in the chain meet: distributors, growers, sales representatives and often the breeders from the offices in the Netherlands, Spain and Turkey. They exchange ideas and discuss market trends and technical issues concerning crops. All this allows them to anticipate new developments and trends. As a vegetable breeding company it enables you to develop new innovative vegetable varieties that can offer benefits along the entire chain, at the right time and in the right place.�
Agro Industrial Forum YUGAGRO Personal contact is very important in a business relationship. Trade fairs are an excellent platform to strengthen the contact with growers and local seed dealers, and to present new and existing successful vegetable varieties. From 20 to 23 November this year, the annual Agro Industrial Forum YUGAGRO is being organised in Krasnodar in South Russia. It is one of the largest agricultural fairs in Eastern Europe, ranging from a wide range of agricultural technologies and machinery, to products and services. Enza Zaden will also be present with a stand at the fair.
The Partnership | 7
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Partnership lo ng l asting and suc cessful
The story of AG Tohum bounds all the way back to 1959 when Mr. Ahmet Gönen, a typical entrepreneur and researcher, started his business career in the agricultural sector of young Turkey. His vision and leadership resulted in the establishment of two important companies, an agricultural chemical one in 1977 and the other, five years later, in the vegetable seed sector.
8 | The Partnership
At the beginning of the eighties, the Turkish market opened up towards Europe. The country made many reforms in different sectors, which allowed vegetable seed businesses to develop. This movement evoked Mr. Gönen to focus more internationally and to analyze European seed companies. “Around the same time, he got introduced to Enza Zaden that had high prospects and many opportunities for the future”, says Burak Gönen, today’s General Manager of AG Tohum and the son of Ahmet Gönen. “Enza Zaden was a growing company and eager to grow in many parts of the world. It wanted to expand in high prospected export markets and Turkey was one of them. With the prudence and understanding of Turkey as an export market, Rob Keene, Director of Enza Zaden Export, brought Turkey to Enza Zaden’s attention and the company started its long lasting and successful partnership with the Gönen family in the beginning of eighties.” Since then, many cucumber and tomato varieties were introduced one after the other, which AG Tohum successfully marketed in the Turkish market. Today, the two companies have one of the largest variety profiles, rendering better alternatives for the growers in Turkey.
Partnership AG Tohum stand at the Eurasia 2011 exhibition
Investment, knowhow and dedication Gaining success in the market is one thing, continuing it is another. AG Tohum and Enza Zaden have therefore decided to serve the market in many ways and in many disciplines. Since 1995, Enza Zaden has intensified its breeding programmes for several crops by establishing a prosperous R&D station in Antalya. It was Piet Mazereeuw’s son, Jaap Mazereeuw, currently Managing Director of Enza Zaden, who established this R&D station and expanded it successfully. Burak Gönen: “This investment has worked both ways: Enza Zaden got a better understanding of the needs of Turkish growers, in both conventional as in high tech growing techniques. AG Tohum, on the other hand, acquired quality varieties with better resistance levels to sell its customers.” The Enza Zaden varieties are successfully spread all around Turkey thanks to the close partnership between the two companies. “We have reliable marketing channels that have built trust and dependability with the growers. Moreover, we know how to scan the
Turkish market for possibilities in order to extend the market share of Enza Zaden varieties. At the same time, experienced agronomists of the Dutch company support this goal by having trials all around Turkey and by investing in positioning its variety range.” Finally, there is dedication, according to Gönen the other key of success that also secures the years of corporate relationship. “The AG Tohum family is very dedicated to the brand name Enza Zaden and its successive varieties. This increases the credibility of our company, which is very important in the seed business. Dedication should actually be in every aspect. This way, we believe that healthy business is created which leads to partnership in the heart in the long run”.
The Partnership | 9
Breeding at its very best
How long does it actually take for a new variety to reach the market? Five years, eight years, or longer? In classical breeding it often takes more than ten years! The breeder's aim is to combine all the desired characteristics into one new plant, the variety. This means cross-breeding lines, followed by inbreeding and extensive, time-consuming selections. It can be done a lot more efficiently, but how? 10 | The Partnership
Trends
All cells in a plant contain genes that represent the plant's characteristics. In other words, the colour of the pepper, the flavour of a tomato or the vigour of a cucumber plant are already present during the earliest stages of a plant. Once a breeder knows which piece of DNA corresponds with certain properties, he can use the so-called DNA marker technology at an early stage - so even before the plant produces fruit - to predict what characteristics the plant and fruits will have. This controlled breeding method, the 2GB breeding technology, means that the DNA can be unravelled, slowly but surely. What specific piece of DNA, called a marker, stands for which particular characteristic? The plant breeder uses molecular markers to figure out which cross-breeding parents have the most ideal genes or which seedlings of just a few weeks old should be selected from the greenhouse or the field. The time saved is considerable, because the fruits do not need to mature to be able to determine for example the colour or the resistance to diseases. In this case, biotechnology is only a tool that offers a quick and efficient way to select and breed varieties with a higher level of innovation. So this has nothing to do with genetically modifying plants, as the genes themselves are not tampered with. The crux here is to recognize the genes.
Complex characteristics 2GB marker-controlled breeding has expanded enormously in the past ten years. Annually the Molecular Markers department at Enza Zaden runs a large number of marker tests on plants that are sent to the company from its international subsidiaries. And the capacity for marker tests is set to expand in the future. Especially for selecting disease resistance or other characteristics that are not too complex, this technology is here to stay. Disease resistance is often the result of the presence of a single gene. But what if it concerns complex characteristics for which multiple genes are responsible, and that are scattered over the entire DNA? These are characteristics that are difficult to crack, such as flavour, shelf life and certain disease resistances. This is where the latest technology comes to the fore, the third generation breeding technology: 3GB.
The Partnership | 11
Markers in a nutshell What are molecular markers exactly? With this we mean the huge variety of DNA as it occurs in nature within a species. These are small, specific pieces of DNA in the plant, which
“Since last year we have been working with this new breeding concept at Enza Zaden”, Dick Lensink, Biotechnology Breeder at Enza Zaden, explains. “This is an addition to 2GB. Instead of working with a single gene, this method allows us to work with complex characteristics involving many genes. With 2GB only one marker per plant is involved, but 3GB involves a selection with multiple markers for targeting a specific characteristic and a certain background, such as type. We call these random markers, because the pieces of DNA together determine the characteristic and we do not know exactly what each piece contributes."
provide a certain characteristic, such as germination, yield and disease resistance.
Working with ‘packages’
DNA consists of a specific sequence of
Although 3GB is less tangible than 2GB – where a characteristic is either present or absent – 3GB still improves efficiency enormously. Lensink: “With 3GB we look at the entire population and in it we search for ‘little packages’. Image we want to greatly improve the flavour of a beef tomato, but it turns out to be quite complicated. A cherry tomato variety in our range does have the right flavour qualities we are looking for. We first find out which piece of chromosome of this tomato type contains the desired properties. Now we want to transfer that ‘flavour package’ to the beef tomato. We cross-breed the two types and use the 3GB method to select the plants with all the genes of the beef tomato, but with the flavour package of the cherry tomato. This allows us to exclude a large part of the trial cross-breeds. The same applies to all other favourable characteristics. We just keep looking for the part of the DNA that is responsible for a favourable package, and we then use this as a guideline when selecting trial cross-breeds.”
four building blocks, called nucleotides, and occur as the four DNA letters A, G, C or T. The order of these letters on the chromosomes within a species is almost completely identical, but in certain places a different letter may appear. For example, in a certain place on a chromosome the DNA sequence AAGCCTA may occur, as well as the sequence AAGCTTA. This type of variation is called single nucleotide polymorphism, abbreviated to SNP (pronounced as snip). Researchers determine which SNPs are associated with a particular characteristic and where they can be found in the DNA. For example, they may compare the DNA of a resistant plant to the DNA of a susceptible plant. This may sound easy, but it can only be done using very special technologies. The entire tomato genome for example, consists of 1900 million letters. By comparison: the human genome comprises 3,300 million letters.
12 | The Partnership
DNA fingerprint The composition of DNA can be made visible in a DNA fingerprint. By comparing fingerprints of different plants to the characteristics of the relevant plants, DNA fragments – the markers – can be found, which are responsible for certain characteristics of the plant.
Trends
Breeding by design The 3GB marker application brings 'breeding by design' within reach. This leads to a faster, more efficient breeding process and to varieties of even higher quality. Plant biotechnology at its best, because the plant breeder can put together his variety based on characteristics. Lensink: "Of a lot of varieties we already know which 'DNA package' determines the characteristics that cause a variety to excel. This is essential information for the plant breeder to compose ideal cross-breed schedules and to select accordingly. He knows for example that cross-breeding with variety A greatly enhances the probability of an excellent flavour, whereas crossbreeding with B can be beneficial for its resistance and variety C could add a good shelf-life. Using the same techniques, he will also know which offspring to select. In other words, he can customize the variety to suit the requirements.” To facilitate this process, Enza Zaden is setting up an extensive data system full of information about the characteristics and the DNA of different varieties, and for numerous of crops. This year the company expects to have completed two such applications. Yet it is still important to realize that marker technology and 3GB does not suddenly make everything possible. This is not the case; it is only a tool. "The combination of breeding using molecular markers is what will make things happen. Both technique and knowledge are available. Our challenge is to optimally exploit this potential in this complex discipline”, Lensink concludes.
Mastermind Who doesn't know the popular Mastermind game, the game in which players try to break a secret code? In Mastermind, the code maker chooses a secret code of four positions from six different coloured pawns. The code breaker then chooses a code and is given feedback using black and white ‘key pins’: black for the right pawn in the right position, and white for the right pawn in the wrong position. With this information the code breaker is able to fine-tune the codes until the secret code is broken.
Marker-controlled vegetable breeding is somewhat like this game, albeit that it is a fairly complicated version of the game. Researchers are in search of the secret code for the characteristics. The code can only be a SNP (2GB) or ‘random markers’, the pieces of chromosome (3GB). To find out, researchers carry out a large number of tests that provide them with an increasing amount of information about the right building blocks and the right positions. This allows them to further fine-tune the code until they finally manage to break it.
The Partnership | 13
Going Green
Corporate social responsibility is a worldwide growing trend, also within the Enza Zaden organisation. We believe a company can only be successful if it operates in harmony with its environment. Just some examples are the generation of electricity in Enkhuizen with an own CHP (combined heat and power) that feeds energy back into the grid, the support of local and regional organizations with charitable aims and the Enza Zaden office in Germany, environmentally and ecologically built to the highest standards. The latest addition is the new building of the Enza Zaden Research station in San Juan Bautista. “We are the first building in San Benito County being issued this LEED-certificate”, says Ronald Welten, Station Manager. “Buildings need to meet certain ‘green’ standards to qualify for the certificate, like double-glazing, extra insulation and the use of solar panels to be self-supporting as far as energy needs are concerned.” The Enza Zaden employees moved to the new building on January 10 this year. The total building takes up about a thousand square meters, including a seed vault of over a hundred square meters. Welten: “Apart from double-glazing, extra insulation and the solar panels, we have even taken this ‘green’ aspect into account in the plants around the building; we have chosen for trees and shrubs with low water needs.”
Fruit Logistica 2012 How do you distinguish yourself on today’s market? Creativity is the magic word. At the Fruit Logistica Berlin, Enza Zaden shows the true meaning of the word. Two displays bulged with products make you look at products differently and inspire you to think out of the box yourself. What about sweet pepper marmalade from the Netherlands, Campari juice from Japan or sweet peppers packaged together as the national flag? “We like the chain to be aware that you can distinguish yourself by taking a look at products differently, more creatively”, says Chris Groot, Marketing Project Manager at Enza Zaden. “Our chef will use our varieties and these products, which come from all over the world, to prepare innovative snacks for visitors to our stand. Together with the chain parties, we like to discuss the latest trends, our new varieties and creative product concepts. That’s the source of new quality varieties.” Creativity will be the main theme of the Enza Zaden stand. But there is more as the company lives up to its reputation as vegetable breeder of tasty product varieties. Therefore, tasty and innovative products from the total portfolio are on display.
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In Focus
Winning! the 'Tuinbouw Ondernemersprijs' 2012
On January 10 last, Enza Zaden won the prestigious Tuinbouw Ondernemersprijs 2012 (National Horticultural Entrepreneur Award). “The prize is a great appreciation and the crowning glory of the efforts of all Enza Zaden employees”, says Managing Director Jaap Mazereeuw. “We are honoured to win this prize. For our company it’s a boost to energetically continue to develop innovative products with added value.”
The prize has been awarded by the Tuinbouw Ondernemersprijs foundation to encourage enterprises and entrepreneurs in the Dutch horticultural sector. The foundation includes the Dutch Ministry of the Economic Affairs, Agriculture and Innovation, the Horticulture Marketing Board and the Dutch Produce Association. Mazereeuw: “The fact that the prize is awarded by the trade itself, makes it even more valuable”. The jury evaluated the four nominees on innovation and development, which included prerequisites such as vision, strategy and the course that the company has determined for itself. The jury especially appreciated Enza Zaden’s marketoriented spirit, its innovation and its human resources policy. The jury: “It evokes a lot of respect how this family company – independent and with a great capacity for innovation – stands its ground and continues to develop in this world of multinational seed companies. By establishing Enza Academy the company continuously invests in developing the knowledge of employees.”
Winnaar 2012 The Partnership | 15
Ode to the
onion
Onions give strength. That is certainly what people thought in ancient Egypt, which is why the pyramid builders were paid in onions. In Chinese medicine, onions were used to treat angina, bacterial infections and respiratory problems. And in the nineteenth century Captain James Cook made his men eat onions to prevent them from getting scurvy during the voyage. Whether such claims from the past were justified, remains the question, but the fact that onions are healthy has certainly been proven. But what do we actually know about this product and what is the market like? 16 | The Partnership
Product
It is a fact that the onion is a popular product worldwide. With an annual production estimated at somewhere between 50 to 100 million tonnes, it is one of the most popular vegetables in the world. This means an average consumption of almost 10.5 kg per person per year. In countries such as Korea, Algeria, Morocco and Spain the consumption of onions is highest. However, the Libyans are the greatest onion lovers: they consume 28 kilograms per person per year. So what is it that makes onions so popular? First of all it is a healthy product: it contains very little fat or cholesterol, but does contain various vitamins and beneficial compounds. On top of that, onions are very versatile, easy to use and a relatively affordable ingredient to give a dish more flavour. Another huge advantage is that onions can be stored for a longer period of time, a feature that our forefathers also appreciated. It was one of the few products that could be stored throughout the winter. It is no coincidence that onions have been cultivated for more than five thousand years. Although it is possible that onions grew in the wild on other continents, the onion most probably originated in Asia. Even today this continent plays an important part when it comes to exports: China and India, together with the Netherlands, are among the world’s top exporters of onions. Globally, the cultivation of onions is still growing due to increasing demand for the product. A major reason for this is the growing world population, the different emerging markets and the rise of fast food chains. Also, as consumers, we are increasingly discovering the cuisine of other cultures, partly due to the emergence of a multicultural society and the fact that people travel to more distant destinations than in the past. These foreign dishes, in which onions are commonly used, are taking an increasingly prominent place within our food culture, even from countries where the presence of onions was originally less commonplace.
The New Zealand Onion Team
Local onions in Brazil
Onion types Onions are biennial plants. The bulb, where the spare food is stored, is shaped during the first year. It consists of a number of fleshy layers and several dry outer layers (skins), which are yellow (a.k.a. brown), red or white in colour. The yellow variety is especially popular, accounting for 75 per cent of the entire global production. Onions can also be classified by daylength; eg. Extra Long Day, Long Day, Intermediate Day, Short Day. This is because the product is sensitive to temperature and day length, i.e. the number of hours of light per day. Short Day onions only need eleven to twelve hours of daylight per day to develop their bulb. For Long Lay onions this needs to be more than fourteen hours. This makes it necessary for each region to develop varieties that are suitable for their specific conditions. Southern hemisphere countries such as Australia, New Zealand, South Africa, Brazil, Argentina and Chile use mostly Intermediate and Short Day types, whereas Long Day onions are mainly grown in the northern hemisphere. The Partnership | 17
Product
Onion breeding The quality and shelf life of the Short Day and Intermediate Day onions are key points within the onion breeding activities. “Worldwide we are now seeing emerging onion markets, for instance in Brazil,” says Bram van Staalduinen, Senior Portfolio Manager at Enza Zaden. “The cultivation of onions is also intensifying. Onion companies are specialising, mechanising and demanding a higher product quality, and above all, a longer shelf life.” An explanation for this can be found in the increasing popularity of the product; consumers want to be able to buy onions throughout the year. The Intermediate Day onions from the southern hemisphere are exported to the northern hemisphere to bridge the gap between the old and the new crops. Other important criteria include flavour, disease tolerance and yield. In order to focus on these key points, Enza Zaden has onion breeders in Australia, New Zealand, Italy and the USA who collaborate very closely. These onion experts regularly exchange specific knowledge to keep abreast of the latest developments in breeding.
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But it is not only onion breeders who exchange knowledge to achieve better, new varieties. Van Staalduinen: “We also regularly have discussions with various parties in the chain. For example, last year we organised an ‘Onion Tour’ in Australia and New Zealand especially for distributors from Australia, New Zealand, South Africa, Brazil, Argentina and Chile. On such an occasion we will visit a number of production and sorting companies, view the different varieties and analyse the samples. Invariably this leads to knowledge sharing on matters of market mechanisms and varieties, and it encourages an exchange between breeding and commerce. It is also important to involve distributors in the decisions about the product flow. They are the people who know how the onion markets function and interact.” This way the company can ensure it meets the growing demand for quality seed varieties in the future, as the popularity of the onion is expected to increase in the coming years.
Column Product
Selection
E
by Joep Lambalk | Managing Director Enza Zaden Research & Development B.V.
Every day almost everyone makes a selection of some kind. Most people probably do it unconsciously, but we are constantly choosing the most attractive, the best or most flavoursome of what we are presented with. Selection is also the basis for plant breeding and ultimately for the crop assortment used in agriculture and horticulture. By consistently selecting the best individuals over many centuries and propagating only the ones selected, it has been possible to develop the most beautiful plant varieties. In plant breeding we call this process 'positive mass selection', which means that from a very large group of individuals, year after year only the best are selected to propagate. In fact, in modern plant breeding 'positive mass selection' is still an important principle. However, today plant breeders use highly sophisticated techniques to select the very best plants in order to create new plant varieties. Plant properties are determined by the presence, identity and activity of genes, of which each plant species has approximately between 25,000 and 35,000. Genes are then neatly grouped on the different chromosomes to make up the genetic code.
programmes are screened. This is also done at Enza Zaden on a large scale. The efficiency and effectiveness of the selection process is thus further extended. This is necessary because the market continually requires better varieties. Does this mean the breeding process is moving from the field and/ or greenhouse to the laboratory? The answer to this is clearly negative. Increasingly, variety development is a well-coordinated set of interdisciplinary team activities that include the entire process from molecule to successful variety. In the coming years, new technology will increasingly enable improvements to be made to the selection procedure of the very best individual plants, and consequently to the successful development of varieties. However, there is one crucial aspect of variety development that cannot be accomplished by advanced technology or the fastest computers: the creativity of the plant breeder, which is the basis for each and every successful and distinctive variety.
A few decades ago, only a few of these genes were recognised and tracked during the selection process. In the last thirty years, initially step by step but later increasingly faster, it has become possible to understand the full genetic code of plants through pioneering discoveries in molecular genetic research of plants. The enormous impact of these discoveries in the breeding of food crops is now starting to have an effect on the selection process. By using increasingly available molecular markers that are linked to specific genes and thus to desirable characteristic(s), entire breeding The Partnership | 19
Jo urney of the
Seed
Is seed expensive? There are tomato varieties that cost around a euro per seed. That may be an extreme example, but seed does indeed appear to be an expensive product. Few people are aware of the complex process that ultimately results in a new seed variety being brought onto the market. Breeding companies do not simply cross-breed a couple of plants they have standing around and let them go to seed. No, it is a process that takes several years and calls for input from numerous disciplines. It involves big investments in research and breeding processes. In the next few editions of The Partnership, we will therefore be following the path taken by a seed. 20 | The Partnership
Product
The first question is: where does that path start? After all, the development of a new variety is not a straightforward process but a business process integrating knowledge and skill. “No individual department can put its own stamp on the product,” explains Joep van Balen, Product Development Manager Asia. “It is a process involving the entire company, as we are all dependent on each other within the company. After all, as a seed company we strive for improvements in all facets of our work: service, varieties and seed.” In this edition, we begin with the starting point of a new variety: identifying the trends from the market, taking note of it and interpreting it correctly. We then translate that information into products with added value for the chain parties.
"Dependence has to form the basis for new ideas and concepts, and deliver synergy.”
The Marketing & Sales department brings the needs and knowledge of the various chain parties together and acts as a kind of lubricant within the business process: it collates ideas, investigates the possibilities and discusses these with the breeding departments. So it's about listening to the market, to growers, consumers, distributors and retailer. With this knowledge, the company then develops varieties with clear added value for the entire chain. Van Balen says, “Within the sector, we are becoming more and more aware that the various chain parties are dependent on each other. That dependence has to form the basis for new ideas and concepts, and deliver synergy.”
Crop Teams In order to optimise the business process, Enza Zaden has set up Crop Teams. Every crop has such a team in which various disciplines such as breeding, sales and portfolio management are represented, including internationally. The objective is to keep each other focused and to raise communications to a higher level in order to further improve anticipation and to tailor the wishes of clients to each other. In this way, they examine developments and trends within the market and respond to them. The Eazyleaf Direct Drilling concept is a good example of this. Numerous parties within the chain enjoy the great added value of the mechanisation of each cultivation and processing phase of lettuce. After all, this shortens the process and the number of hours' labour in the processing industry. Growers can therefore demand a better price for their product. Last summer, Enza Zaden UK therefore organised an open day at which both UK-based and international growers as well as processing companies came to view commercial trials of various Eazyleaf varieties. A great deal of essential information exchange takes place during open days like this. The Partnership | 21
Balance
Continuous process
Joep van Balen works for the Asian market. There, he talks to various parties, visits local vegetable markets and immerses himself in the local products and the local seed. He discovered that the Chinese vegetable varieties are of a high quality but that there is still plenty of scope for improvement in many aspects, particularly with regard to disease resistance. Moreover, further research indicates that growers are willing to pay several times more and cycle a long way for high-quality seed of a good variety. This offers good prospects. The Chinese consumer also appears to be willing to pay more for products with a good flavour. “These are matters on which we need to keep ourselves informed in order to continue to serve the market. What kind of contribution can we as a seed company make? How can we integrate added value while simultaneously keeping seed affordable? We make important decisions on the basis of these questions,” explains Joep van Balen.
Product Development is actually rather like a mash tub used in brewing. The Crop Teams and departments such as sales, portfolio management, trade marketing and breeding actively go looking for needs, problems and opportunities within the market. They then fill up the mash tub from the top with ideas. The ideas are mixed together, innovation and selection takes place, and ultimately new, innovative varieties flow out of a spout at the bottom (the R&D departments) into the market.
“We look for balance,” adds Chris Groot, Marketing Project Manager. “We talk to growers as well as companies that are not direct clients of ours, such as traders and the processing industry. These are of course clients of growers, but they do exercise influence over the varieties that the growers choose. We investigate the problems that these clients come up against and how we could address those problems in a structural manner. After all, Enza Zaden has extensive, advanced laboratories at its disposal in which we look at product properties which are then addressed by the breeding departments.”
“Product Development is actually rather like a mash tub used in brewing.”
22 | The Partnership
A kind of leap-frog game then takes place: varieties and seed are improved and then developed in line with the needs of the market, which in turn gives rise to new wishes. These wishes are then tipped into the top of the mash tub. This dynamic process already took place for rootstocks and the high wires used in cucumber cultivation. Today we also see this in the NFT system - hydroponic cultivation. Enza Zaden has observed new possibilities for its lettuce varieties in this emerging cultivation method. Which varieties are suitable for this method? And are other crops also suited to water-based cultivation? The cultivation system is being developed further in order to get the best out of the varieties. Enza Zaden's response is to investigate how it can further improve the quality of the product. This completes the circle.
Product
Two situations in practice Processing in France In France, a processing company kept coming up against the same major problem: in several varieties, they noticed discolouration of the leaves along the cut edge very soon after cutting. Despite the company selecting varieties that were less prone to this, the problem remained. “When our laboratory in France became aware of this, the team decided to set up a project to trace the genes that cause this discolouration,” explains Chris Groot. “And that was successful. With our marker technology, we now select varieties in an early phase of the lettuce breeding process that are resistant to this kind of leaf discolouration. The first of these varieties will be brought onto the market in two or three years' time.”
Chinese seed as a source of inspiration Joep van Balen's table is covered with sachets of Chinese seed of typical local products such as pak choi. He simply buys them at the local market. He then sows them somewhere within Enza Zaden or even just in his own back garden. This way, he continually keeps an eye on what a product from one market could mean for another. “When I then see the NFT system at Enza Zaden, I wonder straight away whether we could make pak choi available for that system too. I am also curious about other possibilities. In North-Western Europe, we know the larger pak choi crops; in China, the trend is now already moving towards smaller and tastier crop types. Can we use this to our advantage? And how? I myself have also brought seed back to Italy from China to see what these varieties could mean in terms of new innovations in certain segments in the Italian market.”
The Partnership | 23
Mutual trust
the basis for a long-term relationship
Jan Nilsson
Weibulls Horto is today one of the leading distributors in Denmark and Sweden. The company has a long history at the Swedish market, with a start back in the nineteenth century. Over the years, it has formed a strong sales organization, well-known and respected in the market. Vegetable seeds, flowers seeds and turf seeds are the most important products. But the company offers more, like young plants, soil and peat, berry plants, fertilizers and all kind of tools. 24 | The Partnership
The Swedish seed company has worked together with Enza Zaden for many years. Jan Nilsson had the responsibility for the assortment for a lifetime. Now, he is retired, but Jan remembers the early days well. “We started the cooperation with Enza Zaden in the seventies and I remember the visits from Piet Mazereeuw.” At that time, Weibulls was also a breeding company and it had a close cooperation with Enza Zaden for various crops. Weibulls sold Enza Zaden carrots and represented the Dutch company in Finland those days. “Especially the tomato crops were important; we carried out the Enza Zaden screenings at Johnny Nilsson in Sweden and at Maartens in Finland.” What has secured such a long cooperation? “Mutual trust”, Jan Nilsson immediately replies. “The trust between our two companies gave the basis for a long-term relationship where we took both the ups and downs together. At the long term, that secured a good position on the Swedish and Danish market.” Morten Torp adds that Enza Zaden’s breeding programme also plays a part in this, as it allows Weibulls Horto to test and introduce new varieties to chosen growers. “But even more so is having partners exclusive”, he says. “This provides benefits for both parties; strategic discussions have a much higher value when you know the information will not be used towards competitors.”
Partnership
“Even though we want to be a seed company, we have the strategy to offer our customers all supplementary articles they need to succeed in their production”, says Morten Torp, Managing Director of Weibulls Horto. “This is important to be successful, especially in Sweden where many growing companies are not too big and the logistic costs are high due to long distances.” With a work force of 35 employees in Sweden and Denmark, and a 2011 turnover of twenty million Euros, the company may definitely call itself successful. How come? “Our aim is to give our customers solutions that will improve their economical results. We therefore try to look a bit further than just the price. High quality products and skilled employees are key factors we have always focused on and on which we will always be focused. In this perspective it is important to have a supplier like Enza Zaden.
“The trust between our two companies gave the basis for a long term relationship.”
Morten Torp, Managing Director at Weibulls Horto The Partnership | 25
Partners in Lettuce
26 | The Partnership
Lettuce is a popular salad vegetable, particularly in the West. The consumer is encouraged by a variety of organisations to eat healthily, and that means eating vegetables. “The consumer also wants tasty products, particularly ones that are quick and easy to prepare,” explains Steven Zeevat, Manager Portfolio Management at Enza Zaden. “We see that lettuce consumption is increasing, particularly of the crunchier lettuce varieties, such as cos and iceberg lettuce.” Firstly, consumers buy lettuce because it is a vegetable that goes well with virtually every dish. In addition, the increasing popularity of ready-to-use packs certainly plays a role. After all, these packs satisfy today's demand for food that is easy and quick to prepare. “They also offer diversification, as people like to create a tasty mix of a variety of types of salad leaves, such as babyleaf varieties, spinach and rocket. If you had to buy a whole head of each type of lettuce to create that mix, you would end up with an absolutely huge salad. These ready-to-use packs contain a great mix of salad leaves in just the right quantity.” The Partnership | 27
Marketing
All chain parties benefit from cooperation within the chain; cooperation bears fruit for vegetable breeding companies, growers, traders, retailers and end consumers. Ultimately we all share a common goal: satisfying consumers so that they buy and continue to buy our products. However, each link in the chain naturally also has its own specific issues. As suppliers of the source material, seed companies play an essential role in this dynamic process.
Eazyleaf Open Day Spain
Eazyleaf Harvest
The grower Convenience, in terms of sowing and harvesting, is a trend also visible among lettuce growers. That's no more than logical, as labour is getting scarcer and more expensive. Considered alongside the current trend towards increases in scale, it is self-evident that it makes good business and economic sense for growers to invest in machines for sowing and harvesting. However, this does mean that the cultivation process and the varieties grown need to be adapted to suit this. And that's where the seed companies come in.
Working together As a seed company, Enza Zaden doesn't just focus on the grower or the end consumer but on all the links in the chain. The concept EazyleafÂŽ is a great example of this. Good cooperation between all the links in the chain is essential to be able to introduce a high-quantity product onto the market and to make it a success. In this way, all the chain parties can help reinforce each other, give the products more added value and optimise results. The consumer demands good-quality, fresh lettuce in ready-to-use packs; 28 | The Partnership
the retailer demands a long shelf life; the processing industry demands easy to cut lettuce varieties, and the grower demands easy harvesting. For a seed company, this means increasing the shelf life with the assistance of the chain, for example. Zeevat explains: “A grower can do his very best to develop a beautiful product and to chill it straight after harvesting it. The cutting factory can invest a huge amount in processing the lettuce quickly and in chilled conditions, but if the product ends up in a spot on the shelf that is a little too warm, the quality will rapidly deteriorate, particularly in the case of pre-packaged lettuce.“ It is an advantage when all the parties within the chain put their heads together to try to elevate the end product to a higher level of quality, making agreements together and monitoring matters together. It is a win-win situation for every party: the consumer gets tasty fresh lettuce and will be keen to buy it again next time. The retailer knows exactly where the product has come from and the unique properties of the product. This boosts confidence as he knows exactly what he is putting on the shelves. The processing industry can deliver a super-fresh product with a long-shelf life, and the grower is secure in the knowledge that he can sell his products.
Marketing
Eazyleaf Harvest
Ezmina
Improving shelf life Seed companies, as suppliers of the starting material, are a very strong link in the chain. Zeevat explains: “As a seed company, we took the initiative to develop the concept of Eazyleaf together with the rest of the chain. And fortunately, people recognise the extreme importance of the source material for achieving a better end product together and more efficiently. After all, the chain starts with a good lettuce variety. If the starting material delivers quality, the positive effects are felt throughout the chain. Great leaps forwards can be made in terms of the improvement of quality in the area of shelf life in particular.”
The weather is one factor that growers of open-field crops are unable to influence, but shelf life within the chain is much more controllable! Enza Zaden has investigated how product quality can be improved. What exactly causes leaf discolouration after cutting? This actually has direct implications for the shelf life of the product. Following input from the chain, the laboratory in France began research to look for the genes that cause leaf discolouration. This could have major consequences for the quality of the lettuce. These genes have now been found, and extensive, successful breeding work has been done as a result. Enza Zaden will shortly be introducing its first lettuce varieties under the Eazyleaf® brand with this improved shelf life, and this could have major consequences within the chain. The Eazyleaf® lettuce varieties to be launched have been improved to such an extent that the grower benefits from an easy crop that can also be processed efficiently by the processing industry, while the retailer has access to a highquality product with an outstanding shelf life, both saving money and bringing in extra profits. And the consumer is able to serve a fresh, crunchy mixed salad at dinner time.
The Partnership | 29
Marketing
The wonder The Enza Zaden brand Eazyleaf® includes a series of lettuce varieties such as Eztoril, Ezabel, Ezmina and Ezra. These include both red and green varieties, offering all the parties in the chain added value. The varieties grow straight upwards and allow the grower to sow and harvest them mechanically. The deeply serrated leaves mean that each head of lettuce can be cut into lots of small salad leaves with just one slicing movement, ready to be washed and packaged. As the leaves are very tapered, the cut edge of each leaf – which is the most sensitive part after cutting – is very small after processing. This means that the product stays fresh for longer. And as for consumers, they can enjoy a tasty mixed salad with an improved guarantee of freshness.
All the chain parties together Open days are an ideal opportunity to talk to one another. Enza Zaden organises Eazyleaf® open days every year, for example in the UK and Spain. Zeevat explains: “We invite all the chain parties and let them get acquainted with the product. We focus on a different aspect at each open day. In the UK last year we focused on mechanical harvesting. At the Eazyleaf® open day in Spain we brought together the producer-trader-retailer chain to inform them about the next step that we will be taking with the Eazyleaf® concept. In this way we can give the visitors a little extra information and expertise, but even more important is of course that we discuss such matters with each other, to gain new ideas and to elaborate new concepts.”
30 | The Partnership
world of
t
In Focus
of
tomato varieties
Colophon The Partnership is published by Enza Zaden Export B.V.
The main tomato assortment for cultivation in heated greenhouse at one location, full attention to mutual interests and interchanging knowledge and experiences. The tomato demo greenhouse definitely proved its added value for the chain last year with averagely five visitors or groups a week. Among the visitors were growers, growers’ associations, representatives from supermarket chains, retailers and plant raisers.
Editing, concept & layout Enza Zaden, Communications department.
In this edition contributions from: Joep van Balen; Oleg Gladouniak; Burak Gönen, AG Tohum; Chris Groot;
Last year’s success will be continued in 2012. As of 25 April, the Enza Zaden demo greenhouse will be open to visitors again. And new ideas will make the new season even more informative. The tomato breeding team will be more involved with specific product development activities in the demo greenhouse. This allows visitors to be informed and to acquire interesting knowledge.
Maarten van den Heuvel; Joep Lambalk;
An opportunity not to be missed
Pictures
When the North European season ends and the demo greenhouse closes its doors in October, a major part our tomato and pepper assortment is still displayed! At the Spain based site, in Almería, a whole array of varieties developed for cultivation in non-heated greenhouse is on display. The Spanish demo greenhouse is open to visit from early October onwards. Make an appointment and the pepper and tomato specialists will guide you around and inform you about all the ins and outs of the high quality varieties.
Pieter Prins Fotografie, Wervershoof;
Dick Lensink; Lewis Lydon; Marc Mens; Jan Nilssen, Weibulls Horto AB; Ilja Roobeek; Thomas Sörensen; Bram van Staalduinen; Roelof Tempel; Morten Torp, Weibulls Horto AB; Ronald Welten; Steven Zeevat.
Stichting Tuinbouw Ondernemersprijs, Poeldijk; U.S. Green Building Council, Washington, D.C.; Vitalis Organic Seeds, Voorst; Weibulls Horto AB, Hammenhög, Sweden.
Tips for the editors team?
Interested?
thepartnership@enzazaden.nl
The Dutch demo greenhouse can be visited by appointment. Please, contact your local Enza Zaden representative or send an e-mail to Martine Homan, marketing@enzazaden.nl.
Enza Zaden Export B.V.
February
8-10
Fruit Logistica
Berlin, Germany
April
11-13
Greenhouse Technologies
Kiev, The Ukraine
May
15-17
Agritech
Tel Aviv, Israel
9-11
Horti Asia
Bangkok, Thailand
24-26
Halser
Istanbul, Turkey
June
20-22
Hortitec
Holambra, Brazil
September
5-7
Asia Fruit Logistica
Hong Kong
13
Enza Zaden Germany open days
Dannstadt, Germany
23-26
Sahara Exhibition
Cairo, Egypt
24-27
Saudi Agriculture
Riyadh, Saudi Arabia
November
31 Oct-4 Nov Indagra
Bucharest, Romania
20-23
YugAgro
Krasnodar, Russia
21-23
Fruits Vegetables Logistics
Kiev, The Ukraine
December
5-8
Growtech Eurasia
Antalya, Turkey
Calendar
Enza Zaden events around the world
P.O. Box 7 1600 AA Enkhuizen The Netherlands T
+31 228 350 100
E export@enzazaden.nl W www.enzazaden.com © February 2012 | Enza Zaden Export BV | Enkhuizen | The Netherlands All rights reserved. While every care was taken in the preparation of this magazine, no responsibility can be accepted for any inaccuracies. Enza Zaden has attempted to trace all copyrights of illustrations used. If proper acknowledgments have not been made, however, we ask copyright holders to contact Enza Zaden.
The Partnership | 31
the power of
creativity
How do we ensure that we continue to develop the best seed for the best vegetable varieties in the most innovative ways?
These are topics that we deal with on a daily basis at Enza Zaden.
Creativity in translating all this into innovative vegetable crops and top quality seeds that really make the difference. Creativity in creating added value for the whole chain.
the power of creativity
the power of Enza Zaden
Maarten van den Heuvel, Marketing Manager
enzazaden.com
We listen to your ideas and needs. We scour the globe for every possible upcoming trend. And then, our creativity kicks in.