In Belgium, REO Veiling and Coöperatie Hoogstraten have begun discussing a possible merger. Last night, Wednesday, February 2, 2022, these fruit and vegetable cooperatives governing bodies gave the go-ahead for further development of the merger track.
These two healthy, locally anchored organizations have the same ambitious dream: to become robust, future-oriented cooperatives that keep creating sustainable added value for their affiliated growers. Coöperatie Hoogstraten and REO Veiling will enter into this process as equal partners, based on mutual respect and belief in the other's good intentions.
These cooperatives are no strangers to each other. They have worked closely together for years in various umbrella organizations and on several existing projects. Based on initial exploratory talks, both parties are convinced they should explore further integration.
A merger will give them increased clout to respond more decisively to internal challenges and external opportunities. Also, scaling up is deliberating choosing to be an even stronger, more flexible partner in an increasingly consolidating market.
Hans Vanderhallen, Coöperatie Hoogstraten's director, says, "This sector has never before faced so many challenges. In this context, we can jointly respond much more efficiently to market needs. And, together, accelerate the required transformation. Our goal of elevating our internal organization and operations is inextricably linked to this. The increased scale will mean further chances to focus on building a stronger organization."
Paul Demyttenaere, REO Veiling director adds: “Coöperatie Hoogstraten and REO Veiling are clearly complementary, geographical coverage-wise. Together we can form a connecting axis in the heart of Europe. By joining forces, we're taking a solid step towards increased strength. A merger will lead to the essence of a common market organization - a larger consolidated offer that allows us to boost our market position."
In 2021, REO Veiling recorded a €219 million product turnover. The cooperative has always had a broad product range, of which open field vegetables enjoy an important share. Tomatoes remain the most important vegetable, with leeks in second place. Strawberries come in third. More than 800 active growers market their products through REO Veiling.
Coöperatie Hoogstraten recorded product sales of €302 million in 2021. It has quite a focused product range with strawberries, tomatoes, and bell peppers as the main products. More than 200 active growers are affiliated with Coöperatie Hoogstraten.