News » 25.08.2025 - Dutch greenhouse vegetable sector remains among the world’s best in terms of production
The Dutch greenhouse vegetable sector ranks among the global leaders. Together with Canada, Dutch growers produce the highest yields per hectare worldwide. Even within the Netherlands' own agricultural sector, greenhouse vegetable growers stand out — their average income is three times higher than the agricultural average, according to ABN AMRO.
It wasn't always this way, the bank notes after reviewing industry data. Around 2011, the sector faced turbulent times. The global financial crisis, growing price pressure from international competition in Spain and Morocco, and an opaque sales market created serious financial challenges for Dutch growers.
A problem analysis revealed several underlying issues: constant pressure on prices and margins, limited cooperation and efficiency within the supply chain, increasing international competition in a saturated market, the interchangeable nature of anonymous products, and a weak market position.
Armed with these insights, the sector began a turnaround in 2014. By focusing on improved efficiency, collaboration, and a sharper market strategy, Dutch greenhouse vegetable growers transformed their performance — leading to strong financial results and securing their position as a global horticultural powerhouse.
According to ABN AMRO, the Dutch greenhouse vegetable sector's recent success comes from strengthening its role in the value chain. Key success factors include entrepreneurship, collaboration on societal challenges, in-greenhouse innovation, supply chain integration, and reinforcing market position.
Upscaling
To achieve greater scale, growers are increasingly seeking financing, the bank notes. Traditionally, bank loans have been the dominant source of funding in Europe. However, since the 2008–2009 financial crisis, tighter banking regulations have made it harder to provide risk-bearing capital. At the same time, greenhouse vegetable production has become more capital-intensive, with rising investments in high-tech greenhouses, advanced technology, and robotics.
In recent years, non-bank financing has grown in importance. Private equity firms have shown increasing interest in the sector. Their main advantage is the ability to inject risk-bearing capital more easily, while often taking an active role in company management and bringing both expertise and strong growth ambitions. On the downside, financing costs are often higher than traditional bank loans, and growers may have to give up some control. The culture, investment horizon, and "exit strategy" of private equity investors — the way they plan to realize a return on their investment — can vary significantly.
With their focus on expansion and efficiency, private equity players are also accelerating the sector's consolidation trend.
Staying ahead of the competition
To keep its global lead, ABN AMRO stresses that the sector must continue innovating, maintain sufficient scale, and foster cooperation. The market is moving toward an oligopoly — dominated by a few large players — which could lead to companies holding on to innovations for competitive reasons. While this may benefit individual firms, it risks reducing knowledge-sharing and slowing adoption rates, ultimately undermining productivity.
The sector also faces societal pressure. "The image of horticulture remains a challenge, and maintaining the 'license to produce' depends on collaboration on shared issues," the bank notes. Close engagement with government will remain essential to addressing these challenges and securing the industry's future.
Source: www.floraldaily.com
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