The District Court of North Holland declared NH Paprika bankrupt on Tuesday. The company operated a sweet pepper production site of more than 11 hectares in Heerhugowaard. The final peppers of the season were harvested recently.
Both NH Paprika and the court-appointed trustee, Mr. A.C.J. Hanrath from Alkmaar, were asked this morning to comment on the situation. As of the time of writing, neither has issued a comment.
NH Paprika made headlines in 2019 as "the first climate-neutral pepper grower in the Netherlands", thanks to its connection to a local heat network. However, relying on residual heat also had its downside, the grower explained in spring 2024 in Nieuwe Oogst. The company had to purchase CO₂ and was unable to sell electricity, which put pressure on the business model.
On social media, the pepper company recently posted a message to local customers who buy directly from the farm, marking the end of this season. "Thank you, and we hope to see you again next year!"
Plant grower filed for bankruptcy
In the regional newspaper Noordhollands Dagblad (link in Dutch), grower Marcel Numan did respond later on Wednesday, although the court-appointed trustee again declined to comment.
NH Paprika was a regular supplier of sweet peppers to retailers including Albert Heijn. Earlier this autumn, the company was given time to finish harvesting its final crop after a young-plant supplier sent a debt collector to the grower (link in Dutch). Through a special legal procedure, which became publicly known after a recent court ruling, the company managed to delay bankruptcy for a short period.
According to the propagator, the bankruptcy was caused by a combination of factors, including rising energy costs, higher labour expenses, and this year's sharply lower pepper prices. Those low prices followed a season with high production volumes, coming right after 2024, which had already been disappointing due to root problems. "The disastrous payout price pushed us further into financial trouble, leaving us unable to cover our bills," the grower told the newspaper.
Because of rising energy prices, the grower had already reduced energy consumption, but he does not attribute the bankruptcy solely to the decision to move away from natural gas back in 2019.
