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Josef Peck, CEO of LGV Sonnengemüse e.G.:

“We want to increase the variety of products again in the coming years”

In the greenhouses of LGV Sonnengemüse, Austria's leading producer cooperative, the new harvest got off to a slightly delayed start this year. "The sunshine in January and February was significantly lower this year than the annual average. This set us back by about a week. Last year, 2024, we also had a delayed start to the harvest, but this was due less to the weather and more to the energy crisis. Many producers felt compelled to postpone planting schedules to save energy costs. This year, we would have been at the market earlier if the weather had played along," reports Josef Peck, sole director of the company.

Traditionally, cucumbers mark the start of the season for domestic fruit vegetables. "The first cucumbers and mini cucumbers were harvested and marketed in calendar weeks 7–8. Despite the lower amounts of light, the produce so far has been of outstanding quality, so we don't see any problems across the range." According to Peck, the marketing of greenhouse crops has also got off to a pleasing start. "Promotions in the retail sector have been taking place since the beginning of the season and, in my opinion, have increased further. In addition, for several years we have noticed that the timing of promotions tends to be set earlier. No sooner has the season begun than the first chains want to start their promotions. This is understandable, as early promotions work much better than those in the peak season. This presents us with major challenges in terms of logistics, as the required quantities are sometimes barely available. So far, we are still in a situation in which everything that is harvested is delivered immediately, with hardly any stock or reserves. During Easter week, the already strong demand is further boosted by the effect of increased advertising."

© LGVJosef Peck

Meanwhile, heavy rainfall in the Spanish vegetable garden of Almeria has led to an overall supply shortage. Peck: "At Fruit Logistica, we already received numerous inquiries from the trading side whether we would be able to start with sweet peppers on time because there have been weather-related failures in Spain. Apart from this year's volume losses in Spain, which have been felt throughout the entire fruit vegetable category, we have noticed that the retail sector immediately switches to Austrian domestic produce as soon as it hits the market. No one wants to import produce longer than necessary, so demand is already high at the beginning of the season. Nevertheless, the missing volumes in the first phase of the season must continue to be covered by imports. The respective retail chains usually handle this themselves."

Focus remains on entry-level products
The current prices are fine across the board and have risen moderately compared to the previous year. "We can produce properly at these prices and cover our costs accordingly. Currently, we are not seeing any price anomalies, neither upwards nor downwards. Meanwhile, we are seeing that the focus remains on standard products, which in turn is due to inflation and increased price sensitivity among consumers. Nevertheless, we are now testing new, special varieties again for the first time in a few years. We intend to ramp up this product diversity again in the coming years."

Sustainable production & virus-resistant tomato varieties
LGV Sonnengemüse was established in its current form in 2019, following the merger of the two producer organizations LGV and SSG. The company markets the products of around 130 member companies in Vienna, Lower Austria and Burgenland. "About 75 percent of our total sales now come from the fruit vegetables category, and the trend is rising. Specifically, the cucumber is still by far our strongest article, followed by tomatoes and sweet peppers," says Peck, who has been at the helm of the cooperative for five years now as sole director.

There have been no significant increases in area or capacity in greenhouse cultivation in recent years, which is mainly due to the multiple crises. Nevertheless, the groundbreaking ceremony for a flagship project at the Viennese tomato company Merschl took place recently. "This is Austria's first biomass heating plant with Carbon Capture and Use, in other words, a CO₂ separation plant. This system can be used to scrub CO₂ out of the exhaust gas and feed it back into the production process, which will ultimately make a significant contribution to sustainable vegetable production." Alongside the opening this fall, the company is also planning to open a new greenhouse facility. In the future, LGV Sonnengemüse plans to build additional biomass heating plants with CO₂ separation to become less dependent on gas and to be able to produce sustainably.

In recent years, the tomato production in particular has been severely affected by the Jordan virus (ToBRFV) in several renowned horticultural areas. "Fortunately, the virus did not impact us. Our tomato producers are well on their way to switching to virus-resistant varieties, and the risk has now been reduced. For most standard varieties, there are already HR alternatives that have consistently shown good results in cultivation."

© LGV

Despite advanced technology, the course of the season in the greenhouse is always good for a surprise. "During the summer holidays, we usually observe a certain saturation, which is why we then initiate actions from our side to cope with the existing harvest volumes accordingly. The season typically ends in late fall, although last year's flood disaster in Austria brought the season to an abrupt end. This had different effects on the crops, but we had to end our cucumber harvest two weeks earlier than usual. We hope that we will be spared such circumstances this year. Over the years, however, tomatoes have tended to grow longer, and we now have some growers who can harvest smaller quantities well into December."

Lack of yield security characterizes ginger cultivation
Even if the focus currently lies less on the cultivation of special crops, LGV Sonnengemüse was one of the pioneers here. "In 2018, we were one of the first to offer fresh ginger from protected cultivation. However, a major disadvantage of this crop is that the soil temperature has to be kept above 15 degrees for six months of the year, which unfortunately we don't always manage. We would have the option of further increasing production if there were a certain yield security. There have certainly been good years, but there have also been years in which yields were very low, and cultivation did not cover costs. Nevertheless, it remains an interesting product that has been very well received by food retailers and consumers alike."
Overall, the cooperative's management is looking ahead positively. "Demand for our vegetables is good and continues to grow. So we're not worried about sales. Our main task in the coming years will continue to be securing and expanding production. Looking at developments within the cooperative, the number of member companies will probably not increase, but decline slightly. As a rule, companies that cease operations are taken over, and we are also seeing a growing willingness among horticultural businesses to make investments. In particular, in the horticultural area of Simmering, we see many younger business owners who want to take over their parents' business because it has been possible to make a good living from it in recent years. I therefore expect things to start moving again in the next two to three years," he concludes.

This article was previously published in Primeur May 2025. Click here for the link to the entire edition

For more information:
Josef Peck
© Hugo Huijbers | HortiDaily.comLGV Sonnengemüse e.G.
Haidestraße 22
1110 Wien
Tel.: +43/1/760 69-0
E-Mail: info@lgv.at
www.lgv.at