Crisis

The Flemish chicory sector is experiencing yhe biggest crises in fifteen years. Resulting from a slight oversupply on the international market and the unwillingness of the consumer to pay more for chicory growers are making a loss of 1,200 euro per day.

Negative margin due to high energy costs

At the moment a grower received 60 to 65 cents per kg. Last year this was just short of one euro, But as production costs have risen sharply as a result of increased energy and raw material prices, the production cost of one kilogram of chicory has risen to between 80 cents and 1 euro. Consequently an average Flemish chicory grower loses between 600 and 1,200 euro per day.

No inmediate remedy

"The crisis already lasts 6 months and there is no immediate improvement" says Filip Fontaine, chairman of the auction house for horticulture at Kampenhout and Asse. "The slump is the result of a small oversupply on the international chicory market. Traditionally Belgium was the most important chicory country. But this main position has, these days, been taken over by France, which supplies approximately 50% of all chicory"

Belgium: Largest supplier of Chicory

"Belgium still supplies 30%, the Netherlands 20%. An additional problem is, that Germany and Switzerland, which were traditionally importers of Belgian chicory, have started growing chicory on a large scale" says Fontaine. At the moment 30% of the 60 million tons of chicory traded in Belgium are exported. The 'white gold' goes to Switzerland, Italy and Germany.

Chicory: A Belgium vegetable

"In Japan, Canada and the United States they only want Belgian chicory on their plates. Belgian chicory has the same status as our pralines" says Fontaine. "The problem with the Belgian market is, that chicory is known as a typical Belgian vegetable. People refuse to pay more for it, even when production costs increase more and more".

Source: Het Nieuwsblad
Publication date: 7/10/2008