"It's definitely a production year," says Ruud den Boer, Commercial Director at growers' cooperative Oxin Growers. And typically, that doesn't lead to the best pricing, and this year is no exception. In a market update, he shares insights on various crops, ranging from cucumbers to the season's very first Brussels sprouts, which have already been harvested.
Cucumbers recovered well
The cucumber season kicked off on a high note this year, with excellent prices. But not long after, the market faced heavy price pressure as prices dropped sharply, with cucumbers selling for just 5 to 10 cents apiece. This low price period lasted until week 26 and was mainly due to Spain staying in production longer than usual. Once the Spanish supply finally tapered off, prices quickly bounced back.
"Prices have since dipped slightly again, but in week 29, we're still seeing solid returns of 40 to 45 cents for the 35-count cucumbers," says Ruud.
At Oxin Growers, cucumber production is currently about 11% ahead of last year. That increase is partly thanks to the internal expansion of the growing area.
© Telerscoöperatie Oxin Growers U.A.
Tomatoes are also showing a strong performance this year, with higher yields and overall revenue. "That's mainly thanks to truss tomatoes," explains Ruud. "Last year, they didn't do well price-wise, but this season we're seeing a clear improvement—both in production and in pricing."
The market for specialty tomatoes has been on the rise for some time now. Truss cherry tomatoes, snack tomatoes, and truss (mini) plum tomatoes continue to do well. As for loose tomatoes, the average price per kilo is lower, but with production volumes up, the total revenue from loose tomatoes within our cooperative has still increased," Ruud adds.
On the downside, sweet peppers have had a disappointing year in terms of pricing. "The season started off well, with strong prices in the early weeks. But from week 16 onwards, things took a downturn—and the market hasn't recovered since."
There were some temporary price spikes for green peppers throughout the season, and orange peppers are largely sold through contract growing, which offers more stability. However, yellow and especially red peppers have been seriously underpriced for our growers. "It's a letdown, especially after a few good years in the pepper sector. We hadn't expected this year's price pressure to be so intense," Ruud says.
Up to week 26, Oxin Growers' sweet pepper supply was a full 18% higher in kilos compared to last year. That increase is due to both an internal expansion of growing area and a more productive season overall. "In particular, weeks 16, 17, and 18 saw a massive supply peak. Prices plummeted during that period, but growers have consistently maintained high production levels," Ruud concludes.
Start with Iceberg Lettuce
This year, the cooperative has expanded its open-field crop range by adding iceberg lettuce. Two growers, together managing 100 hectares, are responsible for the supply. "So far, pricing has been challenging," Ruud admits. "We're hopeful things will improve as the season progresses."
As for broccoli, the total acreage has remained roughly the same. "We started the season with good prices, but then ran into a few weeks of high production and low returns. Fortunately, we've seen prices recovering again since last week, which is great news for our growers," he says.
Last but not least, the first Dutch Brussels sprouts of the season have just been harvested and delivered to Oxin Growers this week. The crop now covers nearly 600 hectares, an 8% increase compared to last year.
"How the Brussels sprouts market will develop remains to be seen," Ruud concludes. "The good news is that, across the board, crop quality is holding up reasonably well to good. That's essential, because when demand picks up and payout prices rise, we want to continue supplying our customers with top-quality produce."
For more information:
Oxin Growers
+31 (0)180 203 203
[email protected]
www.oxin-growers.nl
