Dutch tree nurseries experience increasing pressure on liquidity

Van Oers has released its annual Tree Nurseries report, and these are its key findings. After several years of craziness in the market, 2022-2023 shows that the market has cooled back to some more normal conditions. The spring has generally been good. A few companies have still struggled but across the board, sufficient returns have been seen. Despite sufficient returns, Van Oers also notes an increasing pressure on liquidity. Debtor balances are rising, with the result that creditor payments are also falling behind.

Over the entire 2022-2023 season, growers' sales are down about 5%. Trading companies even recorded a 15% drop in turnover, which may mean that they have not been able to pass on rising purchase prices to the market. Large differences are visible between companies. A drop in turnover is visible in traditional crops, and last year, there was a surplus of beech. For the coming season, overproduction must be guarded against. If too many plants enter the market, there will be a negative price effect. The advice is to shift to demand-oriented growing instead of area-oriented.

Export value remained flat in the 2022-2023 season compared to the previous year. Domestic sales declined slightly. Van Oers sees a sharp increase in sales to England and Switzerland and, to a lesser extent, to Norway. Exports to Germany are sharply lower, and the Germans are facing domestic overproduction as their exports to Eastern Europe have decreased. The situation in Eastern Europe also affects Dutch growers.

The report can be viewed here (NL).

For more information:
Van Oers
Hofdreef 24, 4881 DR
Zunder, the Netherlands
Tel.: +31 765978800

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