Do Belgian growers notice the value of compensation put in place by LAVA? Tomato grower Wim Vertommen says, "it's hard to tell. We do get up to 5 cents per kilo more, but it's still unclear as to what the buyer's response to this is. The danger is that they will bid less. But the stories about the value compensation aren't always true. Buyers often say that they get cheaper products in Holland, but you have to compare this in the right way. The Dutch tomatoes would have to meet exactly the same quality standards as our parties. Not that they don't grow good tomatoes in Holland, but it's a little more subtle. The buyers have extra costs here, but those are also present in Holland. Buyers need to compare the prices better and more fairly."
Lower prices
"We have noticed before that peppers in Holland have lower prices, but the cost for boxes were added on. We were always played out when our clock prices were compared to the Dutch mediation prices. But there were also added costs in Holland. These costs were just called something else, such as logistics or handling costs. So you're still paying extra compensations. I don't know whether the grower gets it or not, but apparently it's easier for the buyer to pay logistic costs than to pay compensation that goes straight to the grower."
"It's an established fact that they work on a different basis in Holland, and that the handling costs are different. But the extra handling that we provide for our Flandria products is in reality translated in the value compensation that we now receive. It's all perfect and fully controlled. If we don't adhere to that as growers, we're called out on it. Maybe Dutch growers sometimes work on a cheaper basis and maybe they can work more creatively. They do a lot more straight to the trade. But this means that less attention is paid to the quality demands and you don't have those extra handling costs."
Good season
"We have an average price of around 1.25 and with the value compensation that's 1.30. This is a good price, but we also have a number of costs. In recent years the margin has continued to get smaller. We feel like we're heading for a good season. The quality is good, the product is good. Now we just need a good Spring with lots of barbecues and a high tomato consumption. We expect a more gradual product, and if supply and demand remain matched and Holland doesn't mediate too much beforehand and waits a little more for the demand, everything will be fine."
"We have an average price of around 1.25 and with the value compensation that's 1.30. This is a good price, but we also have a number of costs. In recent years the margin has continued to get smaller. We feel like we're heading for a good season. The quality is good, the product is good. Now we just need a good Spring with lots of barbecues and a high tomato consumption. We expect a more gradual product, and if supply and demand remain matched and Holland doesn't mediate too much beforehand and waits a little more for the demand, everything will be fine."