Figures from the FAO show that in 2013 a total of more than 540,000 tons of cranberries were produced worldwide. Cvii. The total worldwide cranberry acreage is estimated at more than 25,500 hectares-viii. The top three cranberry producing countries are the US with 405,000 tons (75% of the total, approx. 17,000 ha), Canada with 122,000 tons (22%, approx. 6000 ha) and Belarus with 6,500 tons (1.2% , 1600 ha).

The largest global player in the cranberry market is Oceanspray. Oceanspray is a cooperative of more than 700 growers in Canada and the US and Chile. The global market share is estimated at 60-65%. Decas Cranberry is second in the market. This company is estimated to have a market share of 10%. Competing in price terms with cranberries from these players is unlikely. Not much cranberries (<100 ha) are currently grown in the Netherlands. Estimates are that there is a maximum of 500 hectares of cranberries in the Netherlands (website BesNederland). Cranberry Texel, Cranberry Terschelling and BesNederland are currently one of the few producers in The Netherlands.

BesNederland B.V., initiator of large-scale cranberry cultivation in the Netherlands, is an experienced (14 years) chain director who specializes in cranberries and everything around it. They supply planting material, supervise cultivation, sales and marketing and conduct research. BesNederland has contracts with 13 growers and has 15 hectares (20 hectares from 2017). These growers produce without artificial fertilizers or pesticides. BesNederland makes price agreements according to the Rijnland model (margin is shared in the chain on the basis of an open book). World prices of cranberries are between € 1.75 and € 2 per kilogram, but BesNederland has customers such as Marqt who are willing to pay € 5.50 to € 7.50 per kilogram. BesNederland also conducts a lot of research into the cultivation and sale of cranberries. To this end, they have sought cooperation with Wageningen University, PPO and LEI. This has resulted in two reports, Market Research Organic Cranberry Cix (2006) and Cultivation Manual of organic cranberry (2006).

“It is a beautiful plant. You need a good supply chain partner who not only knows how to grow them optimally, but also how to approach the market and get the best price. Call me when you're ready. ” 

Roeland Farjon, Bes, The Netherlands.

Other suppliers in the Netherlands are: 1) Cranberry Terschelling B.V. with about 38 hectares of cranberry fields. The average harvest is around 3-4 tons per hectare. These cranberries are organically produced and not fertilized. The website of Cranberry Terschelling states “To this day it is difficult to maintain a culture that can hardly be implemented on a commercial basis because of the regulations that are built around a natural product”. 2) Crantex is a foundation that is the legal holder of the Cranberry Texel company. This company produces cranberries extensively and organically on grounds owned by the Forestry Commission in the inner dune edge of Texel. The revenues from cultivation are part of a financing structure for nature management.

Shift to year-round consumption 

Traditionally, cranberries are mainly consumed around Christmas and during Thanksgiving in North America. As the health effects of cranberry become more widely known, cranberries are increasingly consumed throughout the rest of the year. The product has more and more moments of use during the day and cranberries are also increasingly used in snacks (Foodnavigator). 

The market for soft fruit is growing at approximately 10 percent per year xii. The world blueberry market is even growing by 15% to 20% per year. 23.3 million tons of blueberries were produced in 1995. In 2014 this had increased to 563.1 million tons. In the Netherlands, 5,500 tons of blueberries were grown in 2013 xiii. That corresponds to slightly more than 1 percent of world production.

Market parties are noticing a growth in the volume of the soft fruit sector compared to last years. Growers also appear to have an increased interest in growing soft fruit. The cultivation area of ​​soft fruit is not that large in the Netherlands. The yield per hectare is very limited and this crop is not viable as the only source of income. Fruitmasters (Geldermalsen) indicates that there is a market for exclusive varieties. However, this market is very small and it requires a great deal of enthusiasm to serve it. For the time being it is unclear what the commercial future of the peat bramble is. 

The growth and size of the mint oil market offers opportunities for mint cultivation in the North Holland peat meadows. The market for mint oil is large. Total world production is estimated at approximately 48,000 tons of mint oilxxxiv. Mint is the third most used aroma. The demand for mint oil grows annually about 3-5% lxxxv. India is the largest producer and exporter. Market share of India is 80%, China 9%, Brazil 7% and the United States 4%.

The Netherlands is one of the largest importers of peppermint oil in Europe. Dutch imports of mint oil in 2014 amounted to more than 150 tonlxxxvi. At the moment no mint oil is produced in the Netherlands. The countries that import the most currency oil are China and the United States. 48% of all exports from India go to China and 18% to the United States. India also exports to Singapore (7%), the Netherlands (4%), Germany (4%) and the United Kingdom (3%)

There is a demand for a constant supply of quality mint oil. The quality of mint oil is determined by 20 to 100 different ingredients (Gracindo, et al.). These substances together determine the taste and smell of the oilxxxvii. M. piperita is known for its better taste due to the wider palette of aromas and flavors in addition to menthol alone than is mainly extracted from M. arvense. The United States therefore focuses more on the higher segment and mainly grows M. piperita. Mint from the United States is therefore known as: "The Champagne of peppermints". Rocky Lundy, chairman of the Mint Industry Research Council, says many companies purchase M. arvense's cheap mint oil from China and India and blend it with the more expensive American oil for improved flavor. The higher quality of the American oil has saved the coin farmers from the strong competition with China and India.

Dutch companies have a preference for high-quality mint oil. In 2014, the Netherlands imported more peppermint oil (M. piperita) 104,344 kilos than other mint oil (M. arvense) (47,475 kilos). Candy manufacturer Cloetta, known for Sportlife chewing gum and Kingpermint, among others, indicated that it appreciated the quality of the American oil better because of stable high quality standards. Cloetta works with volumes of approximately 10,000 kilos of mint oil per year. In addition to Cloetta, there are many other large candy manufacturers in the Netherlands that work with large volumes of high-quality mint oil.

Producing a high quality cash coin oil presents both a challenge and a market opportunity. By using the Dutch expertise in cultivation and selection of suitable varieties of Mentha aquatica, it is possible to market a new product with a high-quality taste sensation and continuous quality. High continuous quality and extra added value can turn North Holland mint oil into a high-quality, distinctive product. Market parties such as candy manufacturer Cloetta, for example, are open to a new peppermint oil, provided that additional benefits can be achieved compared to current oil. New oil is a risk for these parties. It is important that the taste of, for example, King Pepper mint does not change.

After water, tea is the most widely consumed beverage xc. The herbal teas segment, which also includes mint tea, is growing by 15% per year xci. Estimates about the world market vary, but are at least 1,000 tons on an annual basis. Consumers are increasingly realizing the health benefits of the excii. The demand for quality teas is increasing xciii. These are often sold in specialty stores.

In the tea market, ecological, social and sustainability aspects are becoming increasingly important. The main sustainability problems are working conditions, soil degradation, water management, deforestation, pesticide use and poverty excess. There is therefore a great demand for transparency and certification. Parties such as Rainforest Alliance, UTZ Certified and Fairtrade do this. 

The European Union has strict legislation on the use of pesticides and other chemicals. The EU has identified 1000 substances with maximum residue values ​​(MRLs) in theexcv. These regulations put the tea industry under pressure and require a lot of paperwork. Tea from mainly China, but also India, Kenya, Turkey and Sri Lanka, sometimes contains heavy metals and pesticidesxcvii. 

Large multinationals in tea such as Unilever have therefore drawn up sustainability plans to make purchasing more sustainable and secure it in the futurexcviii. The cultivation of mint in the North Holland peat meadows with high quality and sustainability standards can respond to the demand for sustainable tea. 

The Wessanen company of the tea brands Piramide and Clipper processes between 15 and 25 tons of dried organic mint in the tea every year. They buy the dried tea from different producers to make a mint blend. Conditions for them are organically grown, price and the correct way of delivering the mint dried and chopped. They have expressed their interest in the IPV project and are willing to cooperate to select the right varieties that have market value. At the moment it is too early for them to sign a letter of intent.

Costs and benefits

The cranberry has no yield during the first three years of cultivation. Harvesting starts from year 4 and the yield increases to about 8-9 tons per hectare in year 10 when grown organically. With a pre-investment of EUR 90,000 per hectare, it is possible to break even from the eighth year. This estimate is based on other soils than the low moor areas and may therefore be too optimistic. 

Imported cranberries reach the market for € 1.75 to € 2 per kilogram. Organic cranberries from the Netherlands cost € 5.50 - € 7.50 per kilogram. Cranberries harvested by hand are often intended for the fresh market. These yield more per kg than the cranberries that are processed in juices or dried. 

Price-wise competition with blueberries from the United States is unlikely. Companies are responding to the increasing demand and a lot of acreage has recently been planted in, among others, the US, South America, Eastern and Southern Europe. Such trends can also be observed in the Netherlands. Our acreage was expanded to 737 hectares. This was 100 hectares more than in 2014cxv. In the Netherlands, 65% is harvested by hand and 35% by machine. It is expected that more and more machines will be used. It is predicted that supply will soon exceed demand. Finding new sales channels is crucial in the event of imminent overproduction. There are already signs of overproduction CXvi. The growers receive good prices at the start of the season, but after a few weeks the berries from Germany are also on the market, causing prices to fall. This trend poses a risk to making blueberry cultivation profitable. At the moment, cultivation on a scale of 40 hectares is necessary to achieve a commercial cost cxvii. With overproduction this will increase sharply. Positioning as a high-quality niche production is therefore necessary for a profitable business model. Only in this way can a greater willingness to pay higher market prices arise. 

Benefits are highly dependent on the positioning and the sales channels. Initial investment is between € 50,000 and € 60,000 per hectare and the shrubs normally have a lifespan of 10 to 15 years. 

Preconditions for success are similar as previously described for cranberry. 

Cloudberry yields are very low and vary greatly per year and per plot. Almost all cloudberries on the market are wild varieties. In Finland, market prices can reach  12 € per kilo, but the Scandinavians have a deep "berry culture", benefiting this crop.

Establishment costs: depreciation of € 340 per hectare per year 

• An estimate of costs is based on 10,000 plants per hectare at € 0.17 with a depreciation of 5 years xcix. That is 10,000 X € 0.17 / 5 years = € 340 per year per hectare. The price of € 0.17 per cutting is based on large-scale cultivation of at least 250 hectares

• Mint cuttings and sows very easily, so that the farmer purchases the cuttings material once and propagates the crop himself for possible extension of his acreage in the long term and rejuvenation of the crop. In other parts of the world, currency is rotated every 5 years. This means that a farmer will have to replant 20% of his acreage on a fresh piece of land. Research will have to show whether this also applies to the cultivation of mint in peat meadows. 

Operating costs: € 2,290 

• Depreciation of the installation costs: € 340 per hectare

• The fixed costs, consisting of depreciation of land, buildings, inventory and machines, are € 700 per hectare. These costs include a lease price of € 360 (source http://www.boerderij.nl/Home/grondmarkt/Grondprijs/?gebied=2706)

• The cultivation costs, including crop protection products, fertilizers, petrol and maintenance are € 350 per hectare

• The harvest costs are € 300 for rental machines

• Wages are derived from work and are determined from revenues less costs

•  All work is carried out by the farmer himself

• Overhead (office, administration, etc.) € 100 per hectare

• Costs for steam distillation € 500 per hectare for the production of at least 250 hectares. These costs are an indication and partly depend on whether the farmer purchases a unit himself or whether a large steam distillation unit is installed centrally. At the moment these facilities are not available. 

Potential yields of mint oil 

Reference numbers of the comparable product peppermint oil (from the plant M. piperita) from the USA are used to estimate yields. 

•  It is known from literature study that the oil percentage of M. aquatica can vary between 1% and 2.5%, depending on the variety and harvest time. 

• Yield per hectare is 40,000 kg of fresh mint.

• Market prices of mint oils vary greatly by type. Price of M. piperita from the US would be most comparable to prices of high-quality water mint oil from the Veenweiden. Prices of M. piperita oil from the United States vary between € 30 and € 40 per kilo c.

• With an annual production of 80 kg oil per hectare per year and based on the variation in price per kg, aimed at the higher segment, the average yield per hectare will be between € 2,800 and € 3,200. The higher the number of kg of oil produced per hectare, the higher the potential yield. Literature research has shown that depending on location and variety, oil yields can be achieved from 40 kg to 240 kg per hectare.

Establishment costs: depreciation of € 908 per hectare per year 

• An estimate of costs is based on 10,000 plants per hectare at € 0.25 with a depreciation of 5 years ci. That is 10,000 X € 0.25 / 5 years = € 500 per year per hectare. The price of € 0.25 per cutting is based on a cultivation of at least 10 hectares. The costs per cutting are higher for the production of tea compared to the production of oil because the scale is much smaller. 

• Purchase of part of the harvester that separates the leaf from the stem: € 20,000, with a depreciation of 7 years. = € 2,857 per year / 7 years (assuming a production of 10 hectares) = € 408 per hectare per year. 

• Mint cuttings and sows very easily, so that the farmer purchases the cuttings material once and propagates the crop himself for possible extension of his acreage in the long term and rejuvenation of the crop. In other parts of the world, currency is rotated every 5 years. This means that a farmer will have to replant 20% of his acreage on a fresh piece of land. Research will have to show whether this also applies to the cultivation of mint in peat meadows.

Operating costs: € 4,708 per hectare 

• Depreciation of the installation costs is € 908 per hectare per year.

• The fixed costs, consisting of depreciation of land, buildings, inventory and machines, amount to € 700 per hectare.

• The cultivation costs, including (natural) crop protection products, fertilizers, petrol and maintenance are € 350 per hectare. 

• Harvest costs € 350 per hectare for borrowed machines. 

• Wages are derived from work and are determined from revenues minus costs. 

• All work is carried out by the farmer himself.

• Overhead (office, administration GACP certified, etc.) € 150 per hectare.

• The costs for drying are € 2,250 per hectare. Calculations are based on drying costs of € 1.50 per kg dry weight. These costs are an indication and partly depend on whether the farmer purchases a drying unit himself or whether a drying facility is installed centrally. At the moment these facilities are not available for this scale. The quantity of 100,000 kg of fresh leaves is too small for grass dryers to be processed by their equipment.

Potential yields of mint tea 

For an estimate of yields, reference numbers of the comparable product dried tea (from the plant M. spicata) are used. 

• Yield of only the leaf, excluding stem, per hectare must be further investigated. The estimates range from 20% to 30% of the total weight of the above-ground plant material.

• 15% of fresh mint is dry weight. The yield per hectare of leaf with stem: 40,000 kg. Total 6,000 kg of dried mint (leaf with stem). 

• Market prices of dried mint leaves varies by variety. The price that Wessanen is willing to pay is a maximum of € 5 per kg of dried product for organically grown mint.

With an annual production of an average of 1500 kg of dried mint leaves per hectare per year and based on an average sales price of € 5 per kg, the average yield per hectare will be around € 7,500. At operating costs of € 4,708 per hectare. 

Cranberries

• Little experience with the cultivation and harvesting of cranberries in peat pasture areas. Soil wetness can affect yield and soil bearing capacity can present challenges during machine harvesting. 

• Since peat meadows have a much more nutrient-rich soil than the natural biotope, there is a risk that weeds will establish themselves from the seed supply. 

• Cranberry is an invasive species in sphagnum moss reeds and marsh heaths. Spreading to nature reserves via birds or water is a risk.

• For good pricing in the fresh market, the supply must meet a series of conditions, such as the uniformity of the size of the berry, the color (smooth and dark red), hardness, flawlessness and taste.

• Processing parties opt for low-quality cranberries. Scope of processing forms: 90% as juice, small part as fresh. Most of the cranberries are processed into juice or dried and sugared cranberries. A small portion is sold as fresh. In British Columbia, 95% of cranberries are made into juice or dried sugared cranberries, the remaining 5% are sold all over the world as fresh. Cranberry Terschelling processes 90% of the harvest into juice. A small part of the harvest is for the fresh market. The company processes the remainder into juice, jam, compote, herbal bitter, liqueur, mustard, student oats and hunting sauce.

• Due to the growing demand, more and more countries are coming into production. This can lead to a surplus which will have a negative effect on the price.

Mint

Conditions for success 

• Cultivation according to GAP (Good Agricultural Practice) for tea production.

• Processing according to GMP (Good Manufacturing Practice) for oil production.

• Cultivation according to GACP (Good Agricultural and Collection Practice) for applications where the active substances are a selling point for the producer of the starting material.  

• Organic cultivation for tea production.  

• The plots to be used must be free of weeds. This could be done by digging deeper, but there will always be a seed bank left. A water level up to 5 cm above ground level.  

• Soil requirements / pH: wet, slightly acidic, humus-rich soil from nutrient-rich to poor.  Load-bearing floor. 

• Variety must be available with an oil percentage of at least 2% (because otherwise the cost price of the oil is not competitive with regard to mint oil from other countries) and with the correct taste / smell (the Dutch mint must be equivalent to the traditional mint aroma, oil, dried tea). Cold nights and a lot of sunlight during the growth ensure a higher oil content.

• Quality to be reproduced annually. In addition to the variety, a wide range of environmental factors influence the ingredients and thus the taste and smell. Not only the variety, but also the soil and the time of harvest have a major influence on the ingredients.

• If mint tea is marketed with a health claim, it must be in line with the European directive on the use of health claims on nutrition. 

• Inexpensive harvesting Mentha is harvested mechanically in July / August 

Mint producers first mow the crop, after which it is left on the land to dry for a few days. After about 3 days the crop is picked up, shredded and taken to a steam distillation unit. Research will have to determine whether it is possible to let the coin dry on the land for a number of days, or whether it must be transported directly to the steam distillation unit because the land is too humid for this process. Depending on the load capacity of the land, it will be necessary to find out which type of (caterpillar) tires will have to be used to be able to harvest. In all likelihood, for the production of tea, a machine must be developed (partly existing machine that is being adapted for mentha) that removes the leaves from the stems. 

Risks

• At the moment M. aquatica is cultivated on a very small scale for the production of dried leaves or oil. One of the reasons is that this plant has a more bitter taste compared to the other mentha varieties and is relatively difficult to harvest in the wet areas. 

• The processing into peppermint oil requires an extraction step by means of steam distillation. There are currently no facilities for this. Sufficient volume will be required to make this extraction step profitable. Various models are conceivable, such as processing by the farmer on the farm, or a central steam distiller that performs these activities for all farmers in the area. The processing of tea requires a drying step. Currently there are no companies that want / can dry volumes of up to 250,000. Drying protocols will have to be set up, for which it will have to be decided whether a farmer will take care of the drying or whether a new party should be involved. 

• Oil from M. aquatica contains the substance Menthofuran. This substance can be toxic in certain amounts. When choosing certain varieties or time of harvesting, it is necessary to analyze the plant material to see whether this substance is present and in what concentration.

The chain and parties involved

In order to make the production of mint in the Netherlands profitable and sustainable, the average sales price must be at the top end of the market and cost reduction must be achieved in the cultivation, harvest and distillation of the essential oil. This results in the breeding of disease “resistant” varieties that can grow well in peat meadow areas and lead to higher, high-quality oil yields per ha.

Establishment of a cooperative 

It is recommended to establish a cooperative in order to increase production capacity and reduce costs for the farmer. This will ensure that the producer:  

• Will be able to enter the market better;  

• Reduces the financial impact of purchasing machines, materials and marketing;  

• Has better effectiveness for purchasing plant material.

Infrastructure

There is virtually no existing infrastructure for the production of essential oil in the Netherlands. This will have to be built up for mentha aquatica. For the production of essential oil, the following market parties can be involved in the research process:  

• Plant cutting company  

• Producer of fresh mentha aquatica  

• Contractor (producer uses contractor or producer carries out these tasks himself)  

• Steam distiller  

• Food manufacturer that processes the product into an end product

The following market parties may be involved for the production of dried mentha:  

• Plant cutting company  

• Producer of fresh mentha aquatica  

• Contractor (producer uses contractor or producer carries out these tasks himself)  

• Drying (producer lets the products dry, or producer carries out this task self out)

Research

Parties will have to be involved in improving oil production in quantity and quality and making the industry more sustainable by means of v. breeding, cultivation, harvest and steam distillation. These can be individual market parties, but a cooperative can also take on these tasks. 

Areas requiring attention and assistance:  

• Large-scale cultivation is necessary to compete with other countries. A cooperative is recommended so that the producers apply the same cultivation protocol, so that the quality of the different producers is the same. 

• Financial aid for the cooperative is recommended, so that they can provide the producers with high-quality starting material, suitable cultivation locations and distillation units.  

• Research is necessary because knowledge of the cultivation of mint in the Netherlands and specifically in the peat meadow area is lacking. Research concerns both selection and breeding of existing and new varieties of mentha aquatica, crop optimization (cultivation protocol), harvest optimization and development of a protocol for steam distillation.  

• There is a possibility to develop a Dutch mint brand (branding) that stands for high quality, traceability and possibly organic cultivation.