We inform you about the impact of the corona virus on the Dutch and international horticulture market.
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Market update
Wednesday 18 March 2020

 

Supply regulation will be continued

On Monday 16th March 2020, Royal FloraHolland announced an emergency measure in connection with corona as a result of the high throughput percentages on the auction clocks in recent days. This measure was implemented yesterday and will also be continued for tomorrow's auction (Thursday 19th March 2020).

Supply measures relating to corona for Thursday 19th March:

  • Tomorrow, a maximum of 30% of last Thursday's supply volume may be supplied for flowers and houseplants.
  • For garden plants this percentage is set at a maximum of 75%.
  • In addition, A2 and B quality flowers and plants may no longer be supplied.
  • Products will no longer be auctioned off

Clock presale to 75% 
In order to give growers more opportunities to sell their clock supply before the start of the auction, the maximum percentage is increased to 75%. This is now available for tomorrow's supply. Through this possibility we hope that growers can generate more sales. For buyers on the clock, the supply will also remain available. Growers can adjust their percentage in Floriday. If you have any questions, please contact the Floriday support team via 0174 - 352070 or
support@floriday.io.

Read the news here »

 

Market developments Wednesday 18 March 2020

Today's total turnover (clock and direct) amounts to 6.53 million euros. A decrease of 65.1% compared to last year. Today's clock turnover was 1.03 million euros. A decrease of 86.5% compared to last year. A total of only 10.6 million units were supplied to the clock, partly due to supply regulation. Of that, 17.4% had to be destroyed (16.7% for cut flowers, 35.8% for indoor plants and 12.5% for garden plants). 

 
 

Assistance when applying for an emergency credit
With the Government support measures announced yesterday, banks can now start providing emergency credit. Glastuinbouw Nederland has drawn up a handy tool for applying for an emergency loan from your bank. In order to be able to apply for an emergency loan from your bank, you need to send a liquidity forecast. Glastuinbouw Nederland has drawn up an Excel sheet with a manual for this purpose. 

Download the format and manual here (see: Downloads) » 

Webinar by Glastuinbouw Nederland (20 March 2020)
On Friday 20th March, Glastuinbouw Nederland will be giving an online presentation. You can watch the webinar from home. Would you like to attend this webinar? E-mail: jvanstraalen@glastuinbouwnederland.nl 

 

Advocacy
We are now taking stock of the financial support in countries of our international members. Where possible, we will also focus our lobby on those countries. 
In the Netherlands, a package of support measures was announced yesterday by the government. With the government support measures announced yesterday, banks can now start providing emergency credit. In our lobby we keep insisting on an emergency fund.

 

The Pilot for the Nationwide Auctioning for Cut-Anthurium has been postponed
National auctioning is one of the key topics of Royal FloraHolland's strategy. Cut anthurium is the first product group of the Nationwide Auction pilot. Due to the developments surrounding the coronavirus, Royal FloraHolland, in consultation with the FPC Cut-Anthurium, has decided to postpone the March 26th pilot to a later date.  
Read more in this news item >>

 

Representation of interests by Royal FloraHolland

Royal FloraHolland continues to work hard for an emergency fund for the floriculture sector. Today another meeting was held with the Minister of Agriculture, Nature and Food Quality, together with Glastuinbouw NL, Greenport and the top sector. We have indicated that we are pleased with the package of support measures announced yesterday evening, 17 March. But it is not enough. An emergency fund for the sector remains necessary. The minister has asked us to consider the absolute necessity of an emergency fund. We are now working hard on that, together with sector organizations and banks.

We advise you to keep a good record of your losses. You can already start collecting evidence of the damage on the basis of, for example, photos, figures and your bookkeeping.  

 

Update per export country (Source: Ministry of Agriculture)
In this report you will find an update per export country from the Ministry of Agriculture, Nature and Food Quality (LNV) that is involved in the coronavirus crisis measures.  Please note: This is a snapshot, the situation may vary per hour.

Important ornamentals updates for:

United Kingdom:
Supermarkets expect it to take four to six weeks for fresh food shortages to occur. Supermarkets recorded the highest sales volumes ever last weekend due to panic buying and hoarding. After Aldi, more chains are likely to set a limit of 4 pieces per product per person to prevent hoarding.  Online providers with a delivery service are also selling significantly more food products. There is an overload and fully booked delivery slots. Morrisons, the fourth largest supermarket chain, will pay its smaller suppliers, including 1,750 farmers, early. Garden centers have seen their sales drop by around 30% in recent days and hope that in the run-up to Mother's Day in the UK on Sunday, no measures will be introduced that would complicate the supply of flowers and plants.

Mexico:
All fairs and events relevant to the Netherlands that were to take place in March and April have now been cancelled or postponed, including Greentech Americas, ANTAD Expoalimentaria, and just now the trade mission led by Prime Minister Rutte – RVO has informed the participants. This is in line with Mexico's National policy, which prohibits large-scale meetings starting next week. So far, this has had little impact on the agribusiness and on agribusiness flows to and from Mexico.

View other countries »

 

Update most important export and import countries (Source: Royal FloraHolland) 

Update most important export and import countries (Source: Royal FloraHolland) 
Royal FloraHolland has developed a market report that provides information on the situation per country. A number of points from this report:

  • Chains such as IKEA and De Bijenkorf decided to close, just like more and more other stores in the Netherlands. Stores such as Albert Heijn still have their focus on the supply of basic necessities of life. Expectations are that from tomorrow, flowers and plants will be on the shelves again.
  • Also in Germany we see that several orders of Lidl have already been cancelled. In Eastern Europe, Tesco has already done the same. The baumarkets and garden centres will remain open for the time being and are running well according to circumstances.
  • Trade in flowers and plants to the United Kingdom is declining. Retailers are trying to seize online opportunities.
  • We are also seeing drastic consequences in production areas such as Kenya. Personnel are being sent home and flowers are being destroyed. Flowers can only be sent back when the agent's stock runs out.
 

More information 
In the corona live blog you can follow the latest news from the auction; bit.ly/RFHcorona

If you have any questions, please contact your Account Manager or Customer Service via +31 (0)88 - 789 89 89. Customer Service can also be reached via WhatsApp (+31 (0)88-789 89 89) and email
customerservice@royalfloraholland.com

 
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The information provided by Royal FloraHolland with this newsletter has been compiled with the greatest possible care. Nevertheless, it is not excluded that certain information is incomplete or incorrect. Royal FloraHolland does not provide any guarantee in this respect. No rights can be derived by users from the information provided. The (structure or order of the) information provided is only indicative and can be modified at any time without further notice.Royal FloraHolland accepts no liability whatsoever for the contents of the information provided nor for any damage resulting from the use of the information.No part of this newsletter or this edition may be reproduced, published or disclosed in any way without the prior written permission of Royal FloraHolland.

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