Rabobank: Stable growth in horticulture sector

Recent trends in the horticulture sector show stable growth. Entrepreneurs have become more alert to fluctuations in energy prices. Fruit and vegetable markets are stabilizing, while the inflation rate is decreasing. This means that consumers' disposable income is decreasing at a slower rate, allowing most products to maintain their prices. While this stability is positive, ongoing communication with stakeholders remains essential.

The Rabo horticulture barometer demonstrates this growth stability. Compiled from feedback from a panel of 30 Rabobank employees who follow horticulture, this barometer gives a score of 7.1 to the financial health of horticultural businesses, up slightly from the previous 6.9. Selling prices for most products are above cost, contributing to this positive score.

Vegetables

Within the vegetable sector, the greenhouse vegetable sector is performing extremely well. Tomatoes and peppers are seeing good prices. Cucumber, however, lags slightly behind. This is attributed to some tomato farms that, due to the ToBRF virus, had to switch to cucumber cultivation. Despite some price increases, demand for these vegetables remains consistent, in part because of declining competition from Spain in early spring.

Fruit

For fruit, a positive trend can be seen for pears, with prices rising at the end of the season. However, there is a mixed picture for soft fruits, such as strawberries and berries. The price of strawberries in particular remains strong, while that of berries varies.

Mushroom cultivation

In contrast, mushroom cultivation is experiencing challenges. There are reduced sales of machine-harvested mushrooms due to export problems. Hand-harvested mushrooms are seeing a slightly better situation, but it is still not ideal.

Field vegetables

Field vegetables are showing a promising start to the season, with iceberg lettuce and summer leeks performing well. Most of the sales are expected to come later in the year.

While the industry remains stable, it is imperative that operators remain alert to changing market dynamics and pursue continuous innovation to remain competitive.

Rabobank.nl