Spices and Herbs

3.5 Trade structure
3.5.1 Distribution channels
Herbs and spices normally have the same trade structure and distribution channels and
very few traders deal exclusively in herbs. The bulk of the trade enters The Netherlands
through a small number of major brokers and trader/importers. In the past few years direct
trade between medium sized and large producers/exporters in developing countries and
grinders/processors in consuming markets has become more prevalent. Typically the main
parties involved in the distribution of spices and herbs are:
Agent/broker
These are independent companies which negotiate and settle business on the instructions
of their principals and which act as intermediary between buyer and seller. They do not
buy and sell on their own account.
Traders/importers
These specialised traders import on their own account and sell to grinders/processors and
to major end users. They mainly buy bulk quantities of unground spices and resell them at
an increased price. The importer is responsible for all costs associated with the
importation, such as duty, terminal fees, unloading charges, local delivery and warehouse
costs. Larger importers clean and grind spices and herbs before exporting them to other EU
and North American markets. Smaller traders import some herbs and spices directly but
they also buy from larger traders who can offer them better conditions and delivery terms
on small quantities of more specialised items. These smaller traders distribute spices and
herbs to blenders, packers and end users in the food trade. The major international trading
centres for spices are New York, Rotterdam, London, Hamburg and Singapore.
The most important Dutch spice and herb trading companies are Man Produkten
Rotterdam B.V., Catz International B.V., Holland Produce B.V., Verstegen International
B.V. and Van Eeghen International B.V. (especially for herbs). In addition, the Dutch
company Euroherb is an important international trader in organic herbs and spices.
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