Collaboration in arboriculture can facilitate further growth

There is increasing demand for green space, especially in major cities. The tree and perennial plant sector could position itself as a stronger party towards large buyers or clients, such as governments. Rabobank therefore advises more cooperation between tree growers, as shown in their recent sector report 'De te tile uit, de beuk erin!'. Each growing region now fills in part of the total range, but none of the regions can offer the full range of crops grown, argue authors Lambert van Horen (horticulture analyst at Rabobank) and Dave Marcus (horticulture sector manager).

2,000 specialized companies

In the Netherlands, more than 2,000 companies grow about 3,000 species of trees, shrubs and perennials. The cultivation areas are mainly in Boskoop, Zundert, Opheusden, Horst and central Brabant. The regions are highly specialized in one or more of the culture groups. Each company within the region also has its own specializations or niches in terms of species, variety, size, stage of development and shape. This degree of specialization has led to a high degree of fragmentation. By cooperating in sales between growers and with parties further down the chain, the growing market demand both at home and abroad can be better met.

Grouping forces

Henk Raaijmakers, chairman of LTO's Tree and Perennial Planting Group, agrees with the advice given the sales developments in tree nurseries. "Large retailers are placing increasingly large orders, while online sales are driving up demand for a wide range with very small quantities. Although the sector already has efficient logistics for export, for example, parties will have to bundle more to meet both trends. At the same time, we have to realize that the value of greenery goes up and down with the economic cycle."

Jan Veltmans, chairman of the Tree and Perennial Plant Cultivation Section of the Limburg Agricultural and Horticultural Association, also notes that the greening of cities offers opportunities for tree nurseries on a national and international level. "In a circle of 100 kilometers around Venlo lies the largest tree nursery area in the world. If we can get international cooperation off the ground there even better, we can serve the market even better."

Biggest exporter

The Dutch tree nursery operates in the private and institutional market. Some 60 percent of production ends up with consumers through garden centers, home sales, gardeners, supermarkets and DIY stores. Governments and nature organizations make up the institutional market, which is conducted through tenders.
It is estimated that two-thirds of the production is exported, amounting to 1.41 billion euros in 2017. There is strong growth: in 2010 it was just over 1 billion euros. Some sixty major parties provide over 80 percent of exports, with Germany being the largest buyer.