Articles
THE INTERNATIONAL COMPETITIVENESS OF FRESH TOMATOES, PEPPERS AND CUCUMBERS
Since decades the Netherlands is worldwide a renowned and large exporter of fresh tomatoes, peppers and cucumbers.
The Spanish export grows fast and has recently superseded the Netherlands concerning the export level of tomatoes.
The export position of the Netherlands and Spain is remarkable because the tomato production in Netherlands is just 1% of the world production and Spain has a share of 4%. Several countries have a higher production for instance Turkey with a share of 8%, and Italy and Egypt with 6%. USA and China are also large producers (around 15% of the world production) but are of no significance in terms of exports.
Not only in these countries but in fact worldwide more than 90% of all grown vegetables are consumed in the production region. In Europe, Spain and the Netherlands are the main suppliers on the price-oriented German market and on the value-added oriented British market.
Spain is catching up very fast on quality aspects and market-orientation.
This improvement of the Spanish competitiveness strength is added to the traditionally low cost price.
The advantage of the Netherlands lies in the performance and effectiveness of the supply-chain.
A cost-price orientation is still an important strategic challenge.
A quality strategy is as important, because supermarkets want to differentiate themselves.
Improving the market focus related to the supermarket will be a future key strategic factor.
Supermarkets are the main distribution channel of vegetables, and their importance will only increase.
In the near future the competitiveness depends strongly on the possibilities of supplying the global operating supermarkets with mainly local produced vegetables. On the production side the Netherlands and Spain have a different growing season.
They are supplementing each other in providing year around the supermarkets with fresh produce.
However knowledge diffusion of plant production techniques, global operating wholesalers and diminishing ED-trade barriers give several large producing countries like Turkey, Egypt or Morocco opportunities.
Global operating wholesalers are sourcing price efficiently worldwide.
Non ED Mediterranean countries can be the competitors of Spain because of the identical growing season.
The position of the Dutch supply-chain rums (growers, packers, wholesalers, shippers) depends on the success of their shared internationalization strategy.