A transition regarding pallets is occurring in the Dutch fruit and vegetable sector, so Han van Bruggen of De Haan Palletindustrie has noticed. "Natural DPA HT pallets are increasingly replacing the all-too-familiar green DPA ones. That's why we're adapting our production lines to produce new replacement pallets. Then we can respond to the market," he begins.
In more and more countries, wooden packaging must meet ISPM15 standards. That applies to pallets, too, if they are exported or imported. "Natural DPA HT pallets are heat treated, so they meet those ISPM15 requirements. During treatment, the pallet is put in a drying chamber for x amount of time and heated at 60°C, killing all the pests and fungi in the wood. These hygiene rules are a must nowadays, especially in the fruit and vegetable sector."
"Green DPA pallets' quality also often begins to deteriorate after multiple uses. That and the ISPM15 standards pallets must adhere to now lead people to choose the new natural DPA HT pallets. After the transition started early this year, we began changing our production area to supply these new pallets. Some companies still have old stock, but that's slowly but surely being sorted out. We're playing on on that," says Han.
Growth via acquisitions
That is how this Dutch pallet company wants to strengthen its position in the fruit and vegetable landscape. Palletindustrie De Haan began in 2008 and, after several acquisitions, is now active in several sectors. "We're not yet as big as we'd like to be in the fruit and vegetable world, but our portfolio already contains several mushroom farms, fruit growers, and greenhouse cultivation companies."
"Generally, though, we can keep up nicely in that market. We sell about 2.3 million pallets annually; 70% of our business is used pallets, which we supply to our customers on a circular basis. When we deliver a new shipment, we collect the broken or used pallets. We repair those and return them to that same client," Han explains.
"We're active on the whole Dutch market but can also serve some of the German and Belgian markets. We have our own fleet, so there's basically no limits to how far we can go. Of course, it must be profitable, but should there be a need, we can even deliver to, say, Italy. We're, thus, constantly expanding to reach our goals."
"We do so mainly by takeovers and acquiring new clients. That lets us grow from new locations," Han points out. Accordingly, the company bought out two other Dutch companies, Pallethandel De Boer in 2021 and UPC in 2023. Now, in addition to its headquarters in Hasselt, there are locations in Zaandam and Cothen, too.
Turbulent times
But Palletindustrie De Haan also experienced turbulent times when the timber market exploded during the pandemic. "That and the war in Ukraine saw supplies become much scarcer. And though that supply became more difficult, demand just kept rising. Prices, thus, rose to a maximum. Pallets were hard to come by, and our customers often said, 'However much you charge, just keep them coming.'
"It was an extraordinary time, which didn't hurt us, given how busy it was. It just wasn't as it should've been, and we're glad things have normalized again. There's still a slight surplus of used pallets, as many companies stocked up so they wouldn't run out. That luckily hasn't led to another price hike," Van Bruggen says.
The specialist doubts there will be a complete switch from wood to plastic in the foreseeable future. "Certain food suppliers and manufacturers demand more plastic pallets because of hygiene regulations and quality, but most of our business still consists of wooden pallets. I don't see that changing any time soon, either. Plastic is far pricier, and though companies often think plastic is more durable, that's not the case. You can reuse wood many times over. Plus, it takes far more work to repair plastic pallets than wooden ones."
Rapid switch
Still, says Han, the pallet world has challenges aplenty. "On the one hand, energy is still very expensive. It costs less, but it's still a major company expense. That's also why we're fully committed to sustainability. That's a trendy word, but we're already 100% energy-neutral, with the machines and production lines running on energy from installed solar panels. Our drivers drive the latest trucks, too, and our forklifts are fully electric. We started this transition some time ago to avoid being dependent on volatile energy prices," he says.
"In the pallet industry, planning and keeping a close eye on things also remain paramount. We work a lot with companies where production depends on their clients. That, of course, makes sense, but it also means they can't always plan their own production. They'll suddenly get an order for a dozen containers, for which there are no pallets."
"Then we must move quickly to ensure they can meet that delivery. So far, we've never had to turn anyone away, but it requires constant attention and service. A fact our business partners appreciate. We hope to keep growing steadily in this way in the coming years." Henk concludes.
For more information:
Han van Bruggen
De Haan Palletindustrie
18 Hanzeweg
8061 RC, Hasselt, NL
Tel: +31 (0) 383 859 299
Email: info@dehaan-group.nl
Website: www.dehaan-palletindustrie.nl