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Coöperatie Hoogstraten Achieves 20% Revenue Growth Despite Challenging Market Conditions

by Tatyana Ivanovich
January 20, 2025
in Company, Fruit, News
0
Coöperatie Hoogstraten Achieves 20% Revenue Growth Despite Challenging Market Conditions

Coöperatie Hoogstraten, a major player in the Belgian horticultural sector, has reported a significant 20% revenue growth for 2024, reaching a total of 363 million EUR. This is a substantial increase from the 301 million EUR reported in 2023, underscoring the cooperative’s ability to thrive amidst market pressures, including rising production costs and unpredictable weather patterns.

Growth in Strawberry Production

One of the standout successes for Hoogstraten was its strawberry production, which saw an 11% increase from the previous year. In total, 32 million kg of strawberries were sold in 2024, reflecting a growing demand for fresh fruit. This growth was driven by favorable market conditions and effective pricing strategies, allowing Hoogstraten to capitalize on a strong consumer appetite for berries across Europe.

The cooperative’s ability to balance rising production costs with competitive pricing is a testament to its market acumen. This achievement, however, must be viewed within the broader context of varying yields across different cultivation systems and plant varieties, which presented unique challenges for producers.

Tomatoes: A Recovery After the Energy Crisis

The 2023 energy crisis significantly impacted production levels, particularly for tomatoes grown under artificial lighting. However, 2024 marked a notable recovery, with a 13.8% increase in tomato sales, totaling nearly 110 million kg. Despite the recovery, the tomato market has been under pressure due to a combination of rising production areas across Europe and a decline in consumer demand.

While the area dedicated to standard tomatoes remained stable, there was noticeable growth in specialty varieties, such as cluster tomatoes. The shift in production types indicates the cooperative’s agility in adapting to evolving market needs. However, the surplus of tomatoes in the European market has led to continued price volatility, with farmers facing downward pressure on prices during certain periods.

Mixed Results for Other Crops

Coöperatie Hoogstraten’s performance was more mixed for other key crops. Pepper production saw a 6 million kg decrease, totaling 23 million kg, as a result of crop area restructuring. Similarly, cucumber production experienced a significant 35% drop, largely due to a shift towards tomato cultivation. Despite the reduced volume, the cooperative benefited from a strong demand for cucumbers across Europe, which pushed the average price up by more than 50%, reaching 0.44 EUR per piece.

Other crops, such as berries and cherries, performed well, reflecting the cooperative’s strong diversity in product offerings. These positive results, particularly in the berry sector, contributed to the overall growth in revenue for the year.

Looking Ahead: Challenges and Opportunities

Looking forward, the cooperative faces both opportunities and challenges. The ongoing pressure from rising production costs, especially for energy and raw materials, will require continued innovation in cultivation practices and cost management strategies. However, the demand for high-quality, locally grown produce remains strong, particularly for strawberries, tomatoes, and cucumbers.

The fluctuations in crop yields and the challenges posed by changing agricultural practices will require careful management, but Hoogstraten’s strong performance in 2024 suggests that its adaptability and focus on quality will continue to serve it well.

Resilience in a Challenging Market

Coöperatie Hoogstraten’s impressive 20% revenue growth in 2024 reflects its resilience and ability to navigate complex market conditions. While the agricultural sector continues to face challenges such as rising production costs and market saturation, Hoogstraten’s commitment to high-quality products and responsive market strategies has allowed it to thrive. As the cooperative looks to the future, continued innovation and careful management will be key to sustaining this growth trajectory in an ever-evolving industry.


Tags: agricultural innovationAgricultural MarketBelgian agricultureCoöperatie Hoogstratencrop yieldFruit and Vegetable AuctionRevenue Growthstrawberry farmingtomato production
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