Netherlands: Bell peppers, cucumbers, eggplants lag behind

The Dutch tomato has gained market share in the EU by the rise of year-round supply (lighting), a quality advantage on Spain and Morocco, and by creating added value (selection, packaging, brands). These points will hardly suffice for Dutch bell pepper, cucumber and eggplant. Spain took over the market leadership in many European countries or is coming close (United Kingdom).

That is the conclusion of the Fresh Produce Centre, which conducted a competition analysis, commissioned by the Federation of Fruit Vegetable Organizations (FVO).

Fruit vegetables are the world's most consumed vegetables with tomato usually number one. The Netherlands is a global player in the trade of fruit and vegetables. On behalf of the Federation of Fruit and Vegetable Organizations (FVO), Fresh Produce Centre has prepared an analysis to highlight the competitiveness of the most important Dutch fruit vegetables tomato, bell pepper, cucumber and eggplant. What is the present position? How was it ten years ago? And what can we expect in ten years from now? The Netherlands, Spain, Morocco, Poland and Turkey are included in the analysis.

An important conclusion is that the Dutch product is losing in importance in several sales markets, partly by the extension of the Spanish growing season combined with lower production costs and improved quality. Zucchini is not included in this analysis because of the small Dutch role and a limited amount of data. As much as 85 percent of the Dutch production of fruit vegetables is exported. Each product has a slightly different market share, but the cucumber is, of the 4 mentioned products, sold the most in the domestic market. Ninety-nine percent of cucumber exports remains within the EU.

Nearly three-quarters of fruit vegetables is directed to Germany, the United Kingdom, France and Sweden. Of the four main products the bell pepper is the main product to find its way to countries outside the EU: the United States (6%), Norway (3%), Japan (2%) and the United Arab Emirates (1%). Canada has returned again from 2016 as a market for Dutch peppers. Due to a high import levy no exports were made to Canada during the period 2009-2015. Furthermore, exports to the United States are on the rise and from 2017 onwards it will be possible to export bell peppers to China.

The exports of Moroccan tomatoes has more than doubled in the past 10 years. Tomatoes from Spain have lost of their market share due to competition from Morocco and Netherlands. To grow good quality vine tomatoes year round in Spain remains difficult. In recent years Spain has concentrated more clearly on the cultivation of cucumbers, bell peppers and eggplants. This is strongly reflected in the export figures. Thus, the Spanish pepper season is ever getting longer and the growing areas for these products in Spain further are extended. The export of Dutch eggplants has increased in recent years, but the export of bell peppers and cucumber lags behind.

The export of tomatoes from Turkey has doubled in the period from 2005 to 2015. The vast majority is sold in countries outside the EU such as Russia, Iraq and Ukraine. The main EU countries importing Turkish tomatoes are Bulgaria and Romania. Hardly any tomatoes are being exported to Western Europe. Export growth of Turkish bell pepper is largely thanks to sales to Russia. Polish exports of tomato increased notably to Belarus.

The competition analysis also provides a view through to 2025. It is expected that the European market over the next decade will grow slightly in volume and in value. The fruit vegetable sector has its future in its own hands. With a number of steps the Netherlands can improve its market position in the coming years, inter alia by responding to opportunities in the field of distribution and sustainability. Consider the themes of energy, water and crop protection. By utilizing these optimally and to propagate these as well, The Netherlands can further expand its position.