The days of daily auction pricing for Swedish cucumbers are over. Odlarlaget, the Swedish Growers' Association, has embraced AI to establish a more stable and competitive supply of domestically grown greenhouse vegetables and fruits for the Swedish market. This transition benefits member companies, retailers, and consumers, who favor locally grown produce over imports. The shift starts with cucumbers, with tomatoes set to follow soon under the same pricing model.
Odlarlaget has replaced the auction system with an AI-driven approach that supports weekly pricing for greenhouse vegetables grown by its member companies. Cucumbers are leading this change, with tomatoes next in line.
'The old auction model didn't align with current market needs or operational workflows,' says Magnus Nilsson, CEO of Odlarlaget. 'With improved volume forecasting and pricing strategies, we're boosting our members' competitiveness while reducing the retail sector's dependency on imports. Studies consistently show that Swedish consumers prefer locally grown vegetables over imported alternatives.'
This initiative, centered on AI-based volume forecasting and pricing, is part of Odlarlaget's broader strategy to leverage digitalization, ensuring a more reliable and sustainable supply of Swedish greenhouse-grown vegetables and fruits.
'It's a bit eerie how accurately the AI tool's predictions already align with actual reported harvest volumes,' Nilsson continues. 'By analyzing historical weather data, we've identified strong correlations between sunlight, temperature, wind, and air pressure, which affect cucumber yields across Sweden's greenhouses. A rich amount of data from our 60 weather stations, from Ystad in the south to Umeå in the north, allow us to forecast real-time harvest results. On the demand side, we know that consumers purchase more water-rich vegetables, like cucumbers, when the weather is favorable. This AI tool continuously refines both supply and demand forecasts, leading to ever more precise pricing.'
Looking ahead, Odlarlaget plans to enhance the AI tool by integrating data from the Swedish Meteorological and Hydrological Institute (SMHI).
'Incorporating weather forecasts into our model, combined with continuous updates from growers about planned crop areas and plant removals, will significantly improve our forecast accuracy,' adds Peter Horvath, Sales Manager and Product Lead for cucumbers at Odlarlaget.
Thomas Lilja, Chairman of Odlarlaget and owner of Elleholms Tomatodling AB, sees innovation as key to the cooperative's future. 'As a greenhouse grower, I recognize the tremendous potential digitalization and AI offer to the industry,' he says."
For more information:
Magnus Nilsson
Odlarlaget
[email protected]
www.odlarlaget.se
Thomas Lilja
Odlarlaget
[email protected]
www.odlarlaget.se