Inflation-related price hikes, climate-related supply bottlenecks and an overall dampened buying mood: the current financial year also poses major challenges for the fruit and vegetable industry. Despite firm prices and consumer reluctance to buy, the northern German trading company Elbegarten GmbH, with locations in Glückstadt and at the Hamburg wholesale market, can look back on a satisfactory financial year so far. "We would describe the sales as good, although there was a shortage of goods in some cases because growers planted late or not at all. On the sales side, however, we are seeing that consumers are buying the respective products even when prices are high, such as cauliflower in winter," say Kai and Tim Hauschildt
During the seasonal transitions in particular, there were sometimes problems with the supply of goods. "This meant that after a short phase of German produce, we had to fall back on imported goods. For certain products such as cauliflower, on the other hand, several sets were pushed back, which in turn led to an oversupply on the market. Unfortunately, due to the wet weather in spring, the vegetable fields were planted later than in previous years. As a result, the season started around two weeks later in northern Germany. The heavy rainfall in spring followed by the dry May ultimately meant that the young plants of many crops formed few roots and found it difficult to cope with the drought."
The sales area of the company, which was founded in 2013, covers northern Germany and Denmark. The main customers are food retailers, wholesalers, retailers, catering companies and weekly market traders as well as ship chandlers. Broadly positioned as a full-range supplier, customers are served 7 days a week.
Decline in demand in the catering trade
Elbegarten GmbH has both food retailers and traditional wholesalers, including numerous customers in the catering sector, in its customer base. Despite inflation and price increases, the demand from food retailers has remained virtually unchanged to date. "However, I would rate the catering sector as weaker because the price increases in the out-of-home market are definitely making themselves felt and people are eating out less often," says Jan Johannßen. "The prices of individual items are much firmer this year. Due to the holidays, the current market situation is rather quiet, and the price level is not really high. However, we are also noticing that all the goods that were delayed due to the weather are now arriving on the market in bulk. With the current somewhat firmer prices, demand is quite balanced."
The Elbegarten GmbH sales team. From left to right: Kai Hauschildt, Jan Johannßen and Tim Hauschildt.
Staff shortage as an existential threat
Overall, the Elbegarten GmbH sales team is quite optimistic about the remaining months of the current financial year. "We are excited to see how the catering industry develops. We currently hear that the tourism industry on the North and Baltic Seas is weakening." The precarious staff shortage along the value chain also continues to shape the events. This concerns both labour costs and the challenge of finding employees willing to work at all, they explain: "Particularly in production and the associated steps, we see the lack of personnel as an existential threat to numerous trading companies and producers. Ultimately, however, this phenomenon jeopardises the entire chain - from production to the handling of goods, drivers for the delivery, chefs in the catering trade and specialist staff in supermarkets."
Photo credit: Elbegarten GmbH
For more information:
Silke Hauschildt
Elbegarten GmbH
Grillchaussee 126
25348 Glückstadt
Tel: +49 (4124) 6025-110
Fax: +49 (4124) 6025-199
[email protected]
www.elbegarten.com