After several difficult years, 2015 shows a slight recovery for the Dutch horticulture sector. Particularly the three main crops tomato, pepper and cucumber did well. The number of greenhouse horticulture businesses declined recently but the scale per enterprise is increasing. This is the a preliminary analysis by consultancy and audit firm Accon avm:
The positive trend gives companies some air. Still, one good year says nothing about future prospects according to Accon avm agricultural consultant Toon Wagemans: "If you did not have a favorable perspective in previous years this will not change suddenly now. But if we look across the board there are few companies who have acute liquidity problems. We see that some of the smaller companies have deliberately chosen to eventually quit because there is no succession."
Realizing future prospects
Where small businesses have to stop because of the lack of business follow-up, many greenhouse business owners now have a considerable scale. Wagemans: “These entrepreneurs achieve growth because they look at vertical chain integration, internationalization, sustainability and the potential of content components. They consider how they can sit on the market shorter, add value and distinguish themselves for consumers. This process is essential for having future prospects."
In addition, business owners realize that the role of banks has changed, says Wagemans: “Because of the ‘Basel requirements’ figures and risks are handled differently. As an entrepreneur you have to sell yourself on the basis of good business information in terms of numbers as well as adequate clarification and reporting. With regard to banking surcharges a fiscal annual account alone is not enough.”
Changed investment objectives
The analysis also shows that remarkably little new greenhouses were built in recent years considering the average depreciation period, both economically and technically. Where normally 8 to 10% is replaced every year, this has been virtually nil in the past period. Wagemans: 'We see that in recent years investment objectives have changed. Investment has occurred in energy saving, other forms of energy, alternative ways of growing, screens, harvesting systems, renovation and acquisition of existing companies. The average age of greenhouse systems has increased. This will be felt in the coming years. Innovation has also been delayed due to the lack of new construction although this is partly offset by the above-mentioned investment objectives. Some entrepreneurs have chosen smart and creative solutions. Working with multiple locations has also given entrepreneurship an extra dimension."