The Ministry of Agriculture, Nature Management, and Fisheries is the only government agency promoting Dutch agricultural products, with a 1998 budget of $4.5 million. Almost half of its budget is used to organize agricultural product exhibitions, primarily trade fairs. Advertising and in-store promotions account for about 15 percent. Other activities include buyers' missions, trade contact meetings, market research, and publications. Dozens of other private and publicly supported trade organizations carry out export market promotion activities as well. The total budget of these non-government organizations is estimated at $97.4 million for 1998.

Promotional outlays by the marketing boards or industry associations are financed primarily through producer or processor check-offs and levies. Dairy and horticultural products receive the majority of promotional support, reflecting the importance of these industries to the Dutch economy. While the bulk of the organizations' export promotions are aimed at other EU countries, organizations for meat, poultry, eggs, and flowers conduct significant promotion campaigns in Asian countries.

The Dutch Dairy Product Board is the largest agricultural export promotion organization. The board, a quasi-governmental commodity association, is financed by producer checkoff funds. The board passes some of these funds to the Dutch Dairy Bureau for export promotions. The Dairy Bureau promotes primarily cheese, and has a small budget for butter promotion. Most of the export promotions are directed toward other EU member states.

Greenery International, which replaces the Central Bureau for Horticultural Auctions in 1996, promotes of fresh fruits and vegetables. Greenery International has annual sales of $1.5 billion; 13,000 grower members; and controls over 75 percent of the Dutch fruit and vegetable auction sales. A few months after the Greenery was launched, it announced a reorganization in which 350 auction staff were eliminated and 110 staff were hired for information technology and marketing. Revenues for Greenery International originate from levies on producers computed at the various fruit and vegetable auctions throughout the Netherlands. The Greenery stresses the quality and freshness of the products in its advertising and trade promotions, which are concentrated in Germany and the United Kingdom. About one-third of the budget is used to promote tomato exports. Greenery is working hard to regain market share that has been lost to other producing countries, especially Spain, Italy, and Morocco, and to improve the perception of quality of Dutch tomatoes among foreign consumers.

The Information Bureau for Meat promotes the export of fresh and canned meats, as well as meat by-products. The Product Board for Meat and Livestock obtains its funds through levies on slaughtered animals. Most of its budget is used for generic promotion of Dutch meats through trade missions from other EU member states, particularly Germany.

The International Flower Bulb Center receives its export funding from the Product Board for Ornamental Products. The funds are raised by levies on the growers and traders. The Center's budget is used primarily for public relations, trade advertising, and exhibitions and is spent in other EU member countries, Norway, Japan, South Korea, Hungary, and Poland.

The Flower Council of Holland also receives its export funding from the Product Board for Ornamental Products. The funds are also generated from levies on growers and traders. Most of its promotional budget is spent in Germany, France, Italy, Belgium, and the Netherlands. Promotional activities consist of consumer advertising, trade promotion, and public relations. Markets of growing interest are Italy, Austria, and Switzerland.

Competitor Activity

Several EU member states, especially France, Germany, and Italy, have active food promotion campaigns in the Netherlands. German food and beverage promotions are administered in the Netherlands by CMA. France's SOPEXA promotes traditional French products such as wine, cheeses, fruits, and vegetables.

The most visible product-specific promotional campaigns by competitor countries are for wine. France is a major player in the Dutch wine market, accounting for approximately 43 percent of the market. French generic wine promotions in Holland have visibly decreased. However, French wine promotions are carried out with larger retailers. German wines account for 12 percent of the Dutch market. The German and Spanish wine industries conduct a number of wine tasting and fairs each year, and sponsor wine trips to Germany and Spain. Germany offers top - quality promotional materials which can be adapted to meet a particular retailer's needs.

Fruit and vegetable products are regularly promoted in the Netherlands, usually with the assistance of foreign marketing boards. Products typically promoted include New Zealand kiwi fruit; South African apples, table grapes, peaches, and citrus; Israeli citrus, other fruits and vegetables; Chilean apples, pears and, table grapes; French fruits and vegetables; and Spanish and Moroccan citrus.

Last modified: Monday, August 29, 2005