More Dutch greenhouse growers are going bankrupt because their prices are structurally too low, website Nu.nl says on Tuesday.

Growers are focusing on the wrong products and are unable to pay the interest on their loans because of the intense competition which has forced prices down, experts told the website.

Growers need to adapt because ‘what we now see is that the prices are too low and this is putting them in financial difficulty’, Ruud Huirne, director of  food and agriculture research at Rabobank, told Nu.nl.

For example, companies growing bell peppers continue to do so, even if the demand is not there. Tomato growers could also focus more on baby tomatoes, which are increasingly popular as a snack.

Strategy

In addition, Russia’s boycott of European fruit and vegetables has only increased the pressure on growers, Huirne said.

The greenhouse growers’ association LTO Glaskracht confirms the situation, saying too many growers are producing the same products. However, this is not a situation which can be changed overnight, said chairman Nico van Ruiten.

Demand

‘We have to move towards more demand-driven production,’ he said. ‘In addition, we need to be more innovative and that means new products and concepts.’

The sector also needs a branding strategy for Dutch products with more attention for where and how the fruit and veg is grown, he said.

According to official government figures, some 24% of the world’s horticultural trade is in Dutch hands and the Netherlands is the world’s biggest exporter of fresh fruit and vegetables in money terms.