Supply Chain

Dutch Seed Plant Grower Plantise To Close Due To Energy Costs

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Plantise BV, a large Dutch grower of seed potatoes and other seed plants, said it intends to close, citing high energy and rising labour costs.

The company, which has 400 workers on 50 hectares of greenhouse farms and posted sales of €68.7 million ($67.7 million) in 2021, said it would seek an orderly wind-down.

'Plantise's financial buffers are not sufficient to continue bearing these developments,' the company said in a statement. 'Important financial stakeholders, including our bank and shareholders, see no room for a compromise.'

Greenhouses

The firm is the most prominent among Dutch greenhouses to announce its closure, though many are skipping planting for the winter season or taking other measures to stay afloat.

Greenhouses are a €8 billion industry in the Netherlands, and Industry group Glastuinbouw Nederland says up to 40% of its members are currently in financial distress.

Earlier this week the Dutch government announced it will spend €23.5 billion ($23.3 billion) to shield consumers from high energy prices, but a parallel plan offering support for energy intensive businesses is not expected until next year.

Inflation

Inflation in the Netherlands jumped in September to its highest in decades, driven by skyrocketing energy prices, data from the Dutch statistics agency (CBS) has shown.

Consumer prices, harmonised to be comparable with inflation data from other European Union countries (HICP), rose to 17.1% in September after August's jump to 13.7%.

Read More: EU Policy Makers 'Must Do Everything In Their Power' To Assist SME Retailers With Energy Costs

News by Reuters, edited by ESM – your source for the latest supply chain news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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