"British retailers and processors often use Spanish products to the very last package"

Spanish greenhouse vegetables were on the market for longer than expected this season. This made for a difficult situation in the Dutch export market. "In the United Kingdom (UK), they hold on to Spanish products for longer. Retailers in other European supermarkets switch over to Dutch products more easily", says Johan Vrijland of JNV Produce from the Dutch town of Maasdijk. "Dutch vegetables have also come onto the market earlier than expected. This is due to good settings and enough sunlight. This contributed to the European market situation."

The Spanish season is now coming to an end. "The last large retailers and processors are switching over this weekend. Then the produce will be 100% Northern European", continues the exporter. "The market will have to find its balance soon. Looking at the expected supply, I am anticipating a relatively good spring and summer market. There will be no excitement. The summer season will not make up for the relatively bad pre-season. I am also not expecting any dramatics regarding price forming."

"The UK demand for cucumbers is developing favourably. The area used to cultivate British cucumbers has shrunk in the past few years. This has resulted in more demand for Dutch cucumbers. I, therefore, also then expect a reasonable price for cucumbers. The Dutch sweet pepper acreage has grown to a limited extent. This is partly the reason why I do not expect a buzz regarding prices", he says.

According to the exporter, niche products are grown in greenhouses. This makes it difficult to play a significant role in the British market. "The demand and price are often too irregular to gain continuity. This means you cannot just create a relatively high-value, permanent line in the British market."

Johan has, up to this stage, not experienced any significant consequences because of the economic situation in the UK. He says, "I find that the British economy is remaining fairly stable. The British Pound has weakened somewhat lately. Yet, last week, the rate was positive. I am, however, expecting more ups and downs in the future. When there is talk of a hard Brexit, you immediately see the Pound weakening. The opposite is also true."

"We will have to prepare ourselves for whatever Brexit will take place. This can only be done on the basis of existing information. This does not include that much. We do, however, already have to anticipate a new situation in the supply chain. Customs and export technology will change. This will not be an advantage for everyone", he says.

"This means last-minute orders will be more difficult to fufill. The administrative, logistical machine will also take longer to turn. We, as exporters, will have to keep providing maximum service. This will just have to be done within newly-set up legal parameters. The whole chain is expected to change their way of thinking and acting. In the end, things will work out", concludes Johan.

For more information:
JNV Produce Marketing
242 Honderdland
2676 LV Maasdijk
Tel: +31 (0) 174 241 400
Fax: +31 (0) 174 244 942
sales@jnvproduce.nl