"Trading is sometimes no longer fun," says OV Fruit's Oscar van Turenhout. That may sound bleak, but the reality of fruit and vegetable trading is becoming increasingly challenging. Oscar explains where the issues are, focusing on fruit and vegetable imports from Spain.
Spanish products face challenges
OV Fruit, started by Oscar and his brother Victor, operates from the Netherlands and serves customers throughout Europe. Spanish fresh produce prices are high, but those margins are often unattainable in the Netherlands. "The year-round availability of Dutch produce makes it increasingly difficult for Spain to find space in the market." Critical consumers play a role, too. "Spain used to be interesting because of good prices and excellent quality. But rising transportation costs and other factors have largely erased that advantage," Oscar says.
New generation wants stability
Reliable supply is another problem. "Yo-yoing prices have always been a feature of free trade. But the new generation of buyers wants stability. They don't want to pay €5 one week and €10 the next." Spanish growers are, thus, increasingly focusing on retail contracts, which means surpluses are often of lesser quality. "Getting good commission trade in Spain is becoming harder and harder," explains Oscar.
Solutions and opportunities
He sees opportunities for free trade again starting mid-January. "Those who maintain personal contact and make clear agreements on volumes and prices can achieve great results even in a difficult market." OV Fruit focuses on relationships with growers who want to market their own brand rather than on receiving surpluses.
Other countries of origin, like Egypt, Morocco, Turkey, and Greece, are gaining ground. "Morocco may become interesting because of the effect of the floods in Valencia and Malaga," Oscar points out. Turkey's stable fruit-vegetable and fruit supplies are noteworthy. Even Greece is increasingly offering citrus products, although not yet at Spain's level in terms of certification and packaging.
Focus on quality and cooperation
Oscar stresses the importance of having reliable partners. "As an importer, you can stand out by marketing high-quality products, thanks to unique relationships with growers and customers. That's key in a changing market," he concludes.
Oscar van Turenhout
OV Fruit
Mob: +31 (0)657581054
[email protected]
www.ovfruit.nl