The upcoming winter season for the fresh herb market is seeing the industry brace for a turbulent period ahead. The Netherlands-based Europe Retail Packaging (ERP), headquartered in Poeldijk, who are specialists in the fresh herb sector, forecast the trends and demands heading into the winter. "We're heading into a roller coaster ride, with challenges beyond expectations," warned Raymond Van Der Burgh from ERP. He emphasized that shifting weather patterns, logistical nightmares, and supply chain instabilities are reshaping the market.
"We believe that sharing information is essential for ensuring our clients are well-informed and able to draw their own conclusions. Unlike many competitors, ERP has dedicated significant resources to analyzing market conditions from both micro and macroeconomic perspectives. This in-depth analysis enables the company to forecast supply and demand trends, which it shares publicly through daily newsletters," said Omer Kamp, highlighting ERP's commitment to transparency.
Preparing for a challenging winter season
The ongoing effects of El Niño have already left their mark on global agriculture. In Africa, excessive humidity and persistent rains are disrupting growth cycles, while Europe and the Middle East are facing sporadic storm systems that devastate crops.
Max De Vetten from ERP further elaborated: "When you factor in recent regulatory changes, such as stricter limits on chemical use and reduced Maximum Residue Levels (MRLs), alongside extreme weather conditions, the supply chain this year will be under immense pressure."
The impact on fresh herbs
Excessive humidity and rain can severely affect fresh herbs, compromising both plant health and harvest quality. According to Kamp, prolonged moisture increases the risk of fungal and bacterial diseases, reduces essential oil concentration, and shortens shelf life.
To mitigate these risks, ERP advocates for a diversified sourcing strategy. "The only viable solution is to spread risk by sourcing herbs from multiple regions. ERP plans to procure supplies from countries such as Kenya, Ethiopia, Israel, Spain, Italy, Morocco, Uganda, and Tanzania. With a forward-thinking approach and a robust global network, ERP is poised to navigate the unpredictable challenges of the fresh herbs market, ensuring consistent supply for our clients despite the odds," Kamp noted.
Kenyan airfreight crisis and the push for European agricultural security
Unfortunately, there is a new challenge looming over the fresh herbs market: Kenyan cargo flights that have reached a critical point in terms of capacity. According to Rotate's capacity database, airfreight capacity from Africa to Europe dropped by 8% year-on-year in the first week of October, with Nairobi experiencing a sharper decline of nearly 12%. Compounding the issue, airfreight costs have skyrocketed, with rates hitting unprecedented highs.
Gaby de Bruijn of ERP explains, "While the rise in East-West e-commerce has led to shifts in capacity and higher freight rates, European demand for fresh herbs has intensified. We're now entering a sensitive period where securing every kilo of supply will be a challenge."
Renewed focus on local EU production
In light of these pressures, ERP underscores the urgent need to support and strengthen local European growers. "Agricultural security is a necessity that Europe cannot afford to neglect," de Bruijn emphasized.
To address these challenges, ERP has committed to promoting and expanding local production. As part of this strategic shift, the company will source fresh herbs from Spain daily, ensuring a reliable supply chain within the EU. "The evolving weather patterns and logistical bottlenecks have made it abundantly clear: Europe must invest in its own agricultural capabilities to secure its food supply. ERP's renewed focus on local production signals a long-term commitment to bolstering European agriculture amid an increasingly volatile global market," concludes de Bruijn.
For more information:
Europe Retail Packing
[email protected]
www.europeretailpacking.nl