The current Common Organisation of Agricultural Markets (COM) for Fruit and Vegetables will be evaluated and modified in 2013. LEI, part of Wageningen UR, recommends stimulating the fruit and vegetable horticulture sector to produce its products in a more market-focused way and to increase the added value.
Horticulturalists should work not only with each other but also, and primarily, with their buyers. Growers’ associations should ensure that the common product supply fulfils the wishes of the buyers. Environmental grants should focus on measures that can achieve substantial environmental benefits. LEI published these recommendations in the report Market Policy for Fruit and Vegetables.
Despite a number of years with relatively low incomes, horticulture has a reputation as a sector that makes an important contribution to the Dutch economy. The level of added value is high, and the export position appears indestructible. The sector owes this position partly to the ability to overcome crises by means of product innovations and cost reductions. The Dutch fruit and vegetable horticulture sector is developing well in that it is producing more fruit and exporting more fruit and vegetables. This is due in part to the growth in transit trade. However, there are considerable fluctuations in prices and incomes in the horticulture sector.
The European government tries to improve the market and income position of growers by encouraging them to join forces and develop common marketing plans. These plans will be subsidised through the Common Organisation of Agricultural Markets (COM) for Fruit and Vegetables.
There are plenty of opportunities for horticulturalists to receive COM subsidies when setting up operational plans. The administrative burden of the regulation is too great for the Dutch government, because of the need to test individual plans, and also too great for the business world.
Dutch growers’ associations invest a great deal in the environment, sales, and quality. The resources are primarily invested in fixed assets (packaging machines, etc.). Little is invested in product renewal or market development. There are few Business-to-Business and Business-to-Consumer brands on the market and individual companies or associations do little in the way of promotion. In the future, national strategy should focus on product and market development and not on maximising grants and subsidies.