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Netherlands: Mushroom sector under pressure, Clearing House in the pipeline

2013-06-29 16:260NDTV
 LEI is one of the research institutes of Wageningen University and Research Centre (WUR). Within the Netherlands and Belgium, LEI is the leading institute for social-economic research in the fields of agriculture, horticulture and fisheries, the management of rural areas, the agricultural sector and the production and consumption of food. Recently the LEI released data indicating that the Dutch mushroom sector is facing difficult times. Margins are decreasing steadily, and a major overhaul of the trade seems inevitable. 
The number of mushroom farms in the Netherlands has almost halved since 2005 to a little over 150 companies. Acreage dropped in the same period by 12%. The production value in Euros per kilo also shows a downward trend. However, the total production volume is rising and in 2011 approximately 300,000 tons was generated. 
Harold van der Meulen, employed by LEI, clarifies the initiative of erecting a Clearing House, designed to restructure domestic supply. "We believe a clearing house is instrumental in getting the right market information. This in order to determine mushroom volumes within a geographical area. Subsequently, surpluses in the market can be limited so that a better market position is achieved with more stable price levels."
Van der Meulen: "The purpose of a clearing house is to create a balanced market situation, realigning supply and demand, so that pricing can take place without undue pressure. This in turn allows growers to adjust supply accordingly.”
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