With labor prices increasing and the availability of labor decreasing rapidly, a company like Hessing Supervers operates in a challenging market. It's one of the reasons the fresh produce processor decided to centralize its six processing facilities and highly automate its processes. This €200 million investment reflects a development that CEO Frank Hessing also observes within the broader fresh produce industry.
During the recent Leafy Hydroponics Event, he explained that the market will have to continue changing, partly due to climate change and consolidation in retail, as otherwise it will no longer be sustainable. "The way it's done today can't be maintained. It's not a revolution, but there is an evolution happening in the sector." Exactly where this development is heading is still unclear. "We will have the answer between one and two years – it's necessary, otherwise it means the market has an answer we didn't provide."
It's not a transition solely affecting Hessing itself, but also the growers the company sources from. As open-field growing becomes less reliable due to climate volatility, tightening retail specifications, and a shortage of available labor, growers are also facing pressure to invest in technology, infrastructure, and year-round production capacity, such as greenhouse cultivation.
© Arlette Sijmonsma | VerticalFarmDaily.com Frank Hessing during the Leafy Hydroponics Summit, organized by Cultivators
Capital shifts
© Hessing Supervers
With a daily production of up to one million packages and an annual turnover of €420 million, Hessing Supervers is one of the largest fresh produce processors in Europe, positioned between retail demand and market supply. The company recently completed a major consolidation process by moving its Dutch operations to a single 62,000 m² high-tech facility in Venlo. The new site replaces six legacy locations and is now fully ramping up, running over 100 production lines and handling approximately 650,000 packages per day. A German fruit facility supports the Dutch production hub. The six former locations across the country have or are being phased out.
According to Frank, this centralization is necessary to remain competitive under current cost structures, especially in the Netherlands, where labor costs have increased by over 50% in five years, from €20 to €32 per hour. Labor availability, especially of seasonal and international workers, remains a limiting factor both domestically and abroad. The aim is to reduce the production workforce from 800–900 people to around 200 over the next decade.
Leafy products
The product mix at Hessing Supervers reflects distinct market characteristics. In the Netherlands, the company's home market, cooking vegetables and vegetable mixes represent about 75% of sales. Leafy salads make up 25% of Dutch volume, divided into four categories: basic (30%), high-end (30%), baby leaf (5%), and convenience salads (35%). The latter group, including meal and side salads, requires complex handling and offers processors an opportunity for product specialization.
In contrast, international markets are dominated by leafy salads, which account for approximately 90% of the volume. "It's not that similar companies sell more lettuce products, it's just that we sell more products along with our lettuces," Frank explained, adding that their company size is larger than that of their international counterparts.
© Hessing Supervers
The Hessing location in Venlo
Supply chain challenges
Long-term relationships with both growers and customers play an important role within Hessing Supervers, as Frank explained that the company operates in a risky position, bridging the gap between demand and supply.
Retail concentration has intensified in the markets Hessing serves, with most volume now tied to three to four key retail accounts. These clients are essential for operational continuity and exert substantial influence over the chain. He emphasized that "we always start with the price," but that quality, availability, and sustainability now carry equal weight in customer expectations. Frank explained that service levels are non-negotiable, particularly with large retail clients. A deviation from the expected 99% service rate leads to immediate feedback.
Addressing challenges in sourcing, Frank elaborated on how climate unpredictability is a growing concern. "Twenty years ago, Italy and Spain were reliable. Now there's always something—too hot, too dry, too cold." The Netherlands faces similar instability. Availability risks are compounded by tightening specifications and the decline of open-market buffers.
Open-market sourcing is declining, as certification requirements such as IFS, BRC, and "On the way to PlanetProof" have become mandatory—an example of how supermarkets increasingly want control over the chain without intervening in grower choices. At the same time, it has become impossible to pick up from smaller growers every three to four days, as retailers demand maximum shelf life.
© Hessing Supervers
This is part of why the leafy greens supply within Hessing is tightly managed. Forecasting begins before the growing season through planning with grower partners, followed by precise orders five to ten days before use. Customer orders, however, often arrive with less than 24 hours' notice. Fluctuations in weather and purchasing behavior—such as heatwaves or rain—translate into demand shifts. "This places full responsibility for availability and inventory risk on the processor."
Frank in the new facility
Processing efficiency
With automation becoming paramount in the industry, new challenges are arising in leafy greens production. Not only is quality critical, but also product size, which directly impacts processing efficiency and yield. Machines require uniformity: heads that are too large or too small lead to waste or machine failure. As a result, growers are being compensated not only for quality but also for size consistency, with higher payments tied to better processing yields.
Hydroponics as the answer?
So there is a market characterized by environmental challenges, reduced labor availability, and a demand for a stable supply of uniformly sized products. A shift from short-term, reactive sourcing toward long-term, predictive planning, a move toward systems that trade flexibility for consistency and efficiency. Are these drivers for hydroponic cultivation? Frank Hessing was invited to the Leafy Hydroponics Event for a reason. He explained that the company currently sources some products, like Batavia, from hydroponic farms, but the majority still comes from open-field cultivation.
He confirmed that hydroponic and greenhouse production models are part of the future portfolio, but cost remains a hurdle. "We've seen calculations showing 20 to 50 percent price increases," noted Frank, particularly for bulk products like iceberg lettuce.
And there's more: the shift toward controlled cultivation—whether in greenhouses or vertical farms—mirrors the transition Hessing itself is undergoing: from labor-intensive to capital-intensive operations. Just as Hessing's €200 million Venlo facility is a response to market demands for precision, scale, and reliability, hydroponic systems represent a similar shift on the production side. These systems require higher upfront capital, longer planning cycles, and stronger contractual relationships to ensure return on investment, fundamentally changing the grower's role in the chain from flexible supplier to embedded production partner.
For more information:
Hessing Supervers
info@hessing.eu
www.hessingsupervers.nl