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Despite less profitability, fewer bankruptcies in Dutch horticulture

The number of bankruptcies in the Dutch agricultural sector is declining despite pressure on profitability. The sector’s bankruptcies peak occurred in 2012 and 2013. The sub-sectors, vegetables (50%), floriculture (13%) and intensive livestock farming (13%) were largely responsible. The lesser number of bankruptcies is now mainly caused by a sharp decline in horticulture. This is shown by ABN Amro’s sector forecast. 



As with arable farming, product pricing of fruit and vegetable producers largely depends on what is produced elsewhere (in Europe). This year the prices were significantly better than last year. For fruiting vegetables this was partly related to the poor production in Southern Europe during the summer months. ABN Amro also sees a better appreciation of Dutch product by retailers. Sustainability, food safety, quality and reliability play a major role in this valuation. For growers this results in more stable relationships whereby the ability to deliver homogeneous product throughout the year is an important tool. For fruit growers prices are better as a result of lower production volumes in Europe. In the coming years prices for fruit and vegetable producers will continue to increase thanks to further development of closed chains. On the world market the price will depend on the offer elsewhere.

As a result of better prices on the one hand, and further optimization of farming techniques and more productive varieties, production volumes will increase over the coming years. At the same time the acreage will continue to gradually decline. This development follows from restructuring in greenhouses and the number of entrepreneurs quitting.



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