Farming News - Lessons to be learnt from the Dutch

Lessons to be learnt from the Dutch

There are some impressive auction houses in the UK but non-quite on the scale of the Belorta auction house in Belgium.

 

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Formed in 1994, Belorta is the merger of Mechelse Veilingen and Cobra auction houses and is now the largest vegetable co-operative in Europe. It boasts the largest chicory auction and has a collective turnover of at least $300 million in 2012.

 

Nestled in a mere 50 hectare site, the auction house has 25ha of buildings and 12ha dedicated to research. Its fairness, scale and efficiency would rival many businesses both in and out of the agricultural and horticultural sectors.

 

Its shareholders are limited to five shares each to stop big producers monopolising ownership and its board is made up exclusively of active growers, of which there are 1145. Right through from the sale of vegetables to the delivery, efficiency is key. Six computer controlled clocks, running six days a week enable buyers to select what they want, at what price and quantity. This can be done from the auction house or sitting at home through its online e-commerce system. Within an hour of purchase, goods are ready for export due to an army of forklift trucks moving vegetables to loading docks, all of which are done electronically through a computer based system, scanning barcodes to keep track of what produce is where.

 

While sales reached over $300 million in 2012, where do all this fruit and veg go? Well 70% of the volume is exported, Germany accounting for 55% of that, France at 20%, the Netherlands at 10% and other countries such as Russia, Spain, Italy, Japan, UK and Canada, just to name a few, making up the final 10%. Of the 30% of overall volume left, this is marketed internally with a 75:25 split going to supermarkets compared to the wholesale trade. 

 

With tomatoes taking up the greatest share, the crops marketed are a diverse bunch ranging from chicory and aubergine to cucumber and organic produce.

 

Quality control is key throughout the whole process and without it; the auction would not have achieved such a diverse range of recognised brands, which ooze quality and care. Right from the grower, who harvests, packs and transports the goods to the market, quality is key. Penalties for veg crates which come in dirty are penalised. Overnight cooling and storage then maintains optimum temperature so that the goods are as fresh as possible the next ready, ready for the auction.

 

All the crates which come in go through the washing plant, a large building which washes and then stores boxes which producers use to transport their crop. They have even developed foldable crates to reduce transport costs and time.

 

But finally, what really impresses anyone looking round Belorta is their attention to detail. Booking vegetables in for the auction was proving costly to the business, having to employ staff to do the administrative duties. So what was their answer? Well they paid for internet for all producers and gave them a laptop each so that they could do it all online. A fine example of care, responsibility and communication throughout the supply chain which many business at home and abroad, could benefit from.