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[BUSINESS] · Netherlands, Spain, Egypt · 3 sources

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Greenhouse vegetable sector shifts focus to supply security

The greenhouse vegetable sector is experiencing a shift in procurement strategy as supply chain security becomes a higher priority than price optimization. According to Mike de Waard of StC International, the transition to imported produce is occurring in a tight market characterized by shortages and volatility.

Tomatoes are currently facing widespread shortages due to extreme weather affecting both volume and quality. In the pepper market, production has been impacted by low fruit weight and a shift in Spanish acreage from peppers to cucumbers, resulting in a 16 per cent drop in pepper production last season.

Recent disruptions, including viral pressure in Spain and geopolitical tensions in Algeciras, have prompted buyers to move away from single-origin sourcing. To ensure seasonal availability, procurement programs are increasingly being split across multiple origins and suppliers, with Egypt emerging as a significant third winter origin for certain products.