The Dutch ornamental horticulture and food gardening are expected to surpass the revenue stratum of 2023 in 2024 . Although the official figure for Q4 are still missing , an estimate in a newfangled report by BDO evidence that the annual total will surpass that of last year . The write up , which will be published afterward this month , put up an overview of market development , trends , challenge , and uniting and acquisition activity . Our organisation already got an sole preview . Kevin van Herk and Martijn Ceelaert , work in the M&A department of BDO and alive in the Food & Flowers sector , provide commentary .
Martijn Ceelaert and Kevin van Herk
Between 2019 and 2024 , the number of horticultural company minify to 3,250 , a fall of 6.6 % . On the other hand , the full domain of cosmetic horticulture companies acquire by 1.2 % to 4,550 hectares , and that of horticultural company grew to 5,710 hectares . " We see integration movements in unlike submarkets , " explicate Kevin van Herk . " For object lesson , in the love apple and orchidaceous plant markets , where scaling up through consolidation is clearly seeable due to , among other things , energy intensity and competitive pressure . On the one hand , there is the ascending of Private Equity party in gardening , but at the same time , more and more kinfolk businesses are choosing to join forces to increase their next resilience . “select the image for an enlargement
Scaling upMartijn Ceelaert adds : " The motive for scurf is growing . Entrepreneurs see the strategic advantage in mix or collaborating . Moreover , succession within kin businesses is not always immediately useable , making alternatives attractive . Although some companies persist in to engage severally , we require the consolidation trend to continue in the coming year . "
" There are differences between sectors , " go along Martijn . " For illustration , the flower wholesale trade still for the most part consists of minuscule , independently operating player . They often operate on narrow-minded margins , but enough for a good living . Nevertheless , we ask that movement will also occur within this group in the future , where acquisitions will pass to economies of scale and healthier margin . "
Securing supplyThe integration tendency is also more broadly visible . For example , Martijn points out , as a small roundabout way outside the Dutch cosmetic gardening and gardening sector , the acquisition in the fresh garden truck trade , where supermarket concatenation Edeka acquired the Dutch De Groot International , include its ripening facilities . " In a way , this is very ordered ; supermarkets desire to secure their provision , and bananas have been the best - selling fruit in supermarkets for years . "
The story includes twelve acquisition hatful from 2024 , divided among ornamental horticulture , food gardening , and provider . BDO also allow for an overview of several key players per section , including a competitive ground substance of the Dutch market . " The list is for certain not complete , " emphasize Martijn , " but it allow for a squeamish insight into the dynamics and leading company within this sphere . "
The report also addresses emerge engineering science within the sector . " Vertical husbandry , for example , has developed less quickly than previously gestate , partly due to gamy vigour prices and technical challenges in scale up for different crops , " says Kevin .
Another notable theme is the cultivation of marijuana in Canada and the United States , which has spread out to the Netherlands , where the first experiment with legally grown marijuana has go live . " BDO was regard in financing one of the first legal marijuana farm in the Netherlands , " says Martijn . " This was a particular undertaking where we cooperate with , among others , Rabobank . It ’s capital to see that larger fiscal founding are also uncoerced to invest in innovative and complex projects within gardening , showing how funding is potential in complex case when innovation and sector development come up together . "
external opportunitiesThe opportunity for expansion within the Netherlands remain limited , mainly due to a want of space . " We also see that many Dutch companies are bet abroad , " says Kevin . " In addition , Dutch knowledge and technology are being used worldwide . Although the Netherlands grade only 11th in terms of treat cultivation orbit , it is a leader in technology — 99.1 % of the glasshouse are gamy - technical school . With all the climatical changes , greenhouse finish and Dutch knowledge and expertise will only become more interesting . "
Geopolitical impact and increasing pressureAccording to BDO , on-going geopolitical tempestuousness and economic doubtfulness may have a reinforcing effect on integration apparent motion . " Risks such as rise vigour prices , disruptions in logistics or funding peculiarly affect smaller participant , " explains Kevin . " We also saw this during the Department of Energy crisis : smaller agriculturist had a grueling sentence , some betray their zip positions , or stopped all . This created acquisition opportunities and tone the position of larger market players . "
The market enquiry will be available at the death of the month on the BDO Food & Flowers website . need to receive the reputation earlier ? tangency Martijn or Kevin and get the report before publishing .
For more information : Martijn Ceelaert / Kevin van HerkBDO Accountants & AdvisorsTel . : +31 30 2 849 851[email protected][email protected]www.bdo.nl / nl - nl / branch / food - flowers
Frontpage photo : © BDO
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