The Economics Bureau of the ING expects an average year for Dutch greenhouse vegetable growers. “After a dark start of the year for greenhouse vegetable growers, the sun is finally starting to shine again. The backlog in production has been caught up with, the quality is good, as is the demand and the prices are average (tomatoes and bell peppers) to good (cucumbers). In tomato cultivation, recent prices are under pressure due to increased demand from abroad. It is however expected that, like in the last three years, the second half of 2018 will compensate the disappointing earnings.”
“Many investments are made in takeovers and new buildings. Area expansion namely takes place around Andijk, Terneuzen, Dinteloord and the Zuidplaspolder. Remarkable in horticulture is the fast growth of strawberries and other types of soft fruit.”
1% sales growth and production volume
Driven by the increasing demand both foreign and domestic, sales and production volume in the agricultural sector grow with 1% in total in 2018, in accordance with the long-term average. It looks brightest for entrepreneurs in the ornamental industry, the least favorable are those in arable farming.
Administrative expenses on the environment
Furthermore, the ING notes that agricultural entrepreneurs are experiencing many administrative expenses, especially when it comes to the environment. ING: “This has always driven entrepreneurs to work efficiently, be innovative, but also to take all the chances they get. This is worsened by the fact that at the moment many parties in the agrifood industry take great steps to convince consumers into considering more sustainability.Agriculture and horticulture have already made great progress in terms of sustainability, among which a hearty reduction of emission of greenhouse gasses. The industry, however, is still not quite there yet.”
Source: ING
Source: ING