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Market update
Thursday 19 March 2020

 

Royal FloraHolland maintains emergency fund for the ornamental horticulture sector

Royal FloraHolland is positive about the package of support measures announced by the cabinet last Tuesday. This package is not sufficient to help growers and trading companies through the crisis. That is why Royal FloraHolland is pleading for the establishment of an emergency fund for floriculture. This emergency fund is necessary to safeguard the more than 6 billion euros in floriculture exports.

In a video message addressed to the sector, Royal FloraHolland CEO Steven van Schilfgaarde today expresses his regret at the necessary measures.

Watch the video »

 

Cancellations of orders, force majeure: who is responsible for the incurred damages?

We receive many questions about cancelled orders in direct trading. Who pays for the costs in this situation? Buyers invoke force majeure. But when is there a case of force majeure? 
Read more about when force majeure does and does not exist. And what Royal FloraHolland can do for you.


Read the newsarticle »

 

Supply regulation continues and new regulation in preparation 

The emergency measure announced earlier this week as a result of the corona crisis and the high turnaround rates on the auction clocks will be maintained. At tomorrow’s auction (Friday 20 March) the following measures shall apply: 
 

  • Tomorrow, a maximum of 30% of last Friday'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.
  • Product will no longer be auctioned a second time
  • You can sell up to 75% of your clock supply via Clock Presale (in Floriday). 


The Floriday dashboard quickly shows you how much you can supply at location level in your specific situation. If in doubt, contact your auctioneer.

Read the newsarticle »

 

Additional measures on the clock

In addition to supply regulation, a number of additional measures have been taken:

  • We closely monitor and act on 'additional trade' that is brought into our marketplace. All non-self-producing suppliers, with a supply agreement, must be able to provide proof that the product supplied has been purchased via Royal FloraHolland (clock or direct). Auctioneers and Product Managers are keen on this and, if necessary, also keep these products out of the marketplace. Note: It goes without saying that suppliers without a supply agreement cannot auction at all.
  • In consultation with the auctioneers, it has been decided to further reduce the auction speed so that buyers have more time to buy across the various locations.
  • Buyers who buy a lot at Rijnsburg have been asked to do so even more via KOA (Distance Selling). A relatively large number of buyers were still present in the auction hall in recent days. We want to ensure that we do not fail to comply with the health measures and are forced to take additional actions to prevent too many people being at one location at the same time.
  • In coordination with the auctioneers, the auction tactics have already been discussed several times in the past few days. It has been agreed to be more cautious in speeding up the buildup of the purchase size/inspection. The auctioneer has the possibility to overrule the system if he/she deems it necessary in order to change the buy size/choice structure.
 

Adjustment auction schedules 

At the request of many customers we will merge a number of clocks.
 
Friday 20th March 2020

  • The rose clock of locations Naaldwijk (Clocks 3 and 8) and Rijnsburg (Clocks 1 and 2) will be merged starting tomorrow (read: Friday 20 March). At Naaldwijk the roses will be auctioned at Clock 8 and in Rijnsburg at Clock 2.


Monday 23 March 2020

  • The three rose clocks of location Aalsmeer are divided into two clocks (bell 12 + 13).
  • Clocks 8 and 10 of location Aalsmeer will be merged and the products will be auctioned alternately on clock 8. 
  • At the plant clocks of location Aalsmeer, clock 14 is subdivided over the other three plant clocks.
  • At the plant clocks at the Naaldwijk location, clock 11 is subdivided into clocks 12 and 13.

The adjusted auction schedule can be found here »

 

Update of Rhein-Maas Auction

The situation at the Rhein-Maas auction (VRM) is severe. Trade is at an almost complete standstill. The demand for cut flowers fell almost entirely after all the flower shops had to close their doors on Wednesday morning. Today, plant prices were catastrophic, too. Supply regulation also applies to VRM - the basis for this is the Weekly Notification that plant growers are obliged to submit to VRM. Growers who bring in more plants unexpectedly will be dealt with severely. Of course, everything under A1 quality will be banned, including lots that are auctioned a second time. Plant growers are advised to bring in as many shopping carts as possible, if necessary with fewer layers.

In Bayern, due to doubts, a list has been published on which the "Flower shops" are explicitly mentioned in order to remain OPEN. VRM is active in lobbying the Bundesministerium of Nord Rhein Westfalen to get this done. If this does not succeed, the prognosis for the coming week does not look good.

 

Market developments Thursday 19 March 2020

Today's total turnover (clock and direct) amounts to 5.73 million euros. A decrease of 65.3% compared to last year (compared to Thursday 21 March 2019). Cumulative turnover in week 12 was 49.4% lower than the same week in 2019.

Today's clock turnover was 803,505 euro. A decrease of 86.7% compared to last year. A total of only 8.3 million items were delivered for the clock, partly due to supply regulation. Of that, 13.6 were not sold (12.7% for cut flowers, 37.4% for houseplants and 9.3% for garden plants). Yesterday, the turn on the clock was 17.4%, Tuesday it was 20.3%.          

 

Representation of interests by Royal FloraHolland
As reported yesterday, banks can now switch to providing emergency credit to companies in the sector. You can apply for this credit through your bank, by contacting your account manager at the bank. As of today, you can apply for emergency credit from Rabobank. Glastuinbouw Nederland has drawn up a handy excel format for a liquidity forecast. You will need this, together with your annual figures and other information, to apply for an emergency loan from your bank. 

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

Banks also report that they are going to suspend interest and redemption for 6 months.
The banks also report that the suspension of interest and redemption will take effect for six months. For growers it is also important that the introduction of the increased Storage of Renewable Energy (ODE) is postponed. This would cost the sector 40 million extra. 
The Minister of Agriculture of The Netherlands visited a chrysanthemum grower today to see the situation with her own eyes. She got a good picture of the situation here.

 

Update per export country (source: Ministry of Agriculture)
In this report you will find an update per export country of 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:

Belgium:
Garden centres in Belgium may only sell food and animal feed. AVBS is negotiating a relaxation, but for the time being without result. Supermarkets are still selling flowers and plants. Some flower shops sell 'at the door' similar to takeaway restaurants. Many shops are effectively closed. There are, however, growers selling their products on the street, because the need is high. They have a display of their products with a guiding price and a leaflet with corona guidelines and a pot for the honest payer next to their products. Selling and delivering flowers and plants online is still allowed but is not recommended, also for flower shops to do so because flowers and plants are not among the extremely necessary products.

United Kingdom:
Supermarkets are taking more measures to deal with the overwhelming demand. The traditional big four Tesco, Sainsbury's, Morrisons and Asda have a maximum of four, three or two units per product per customer for groceries. Sainsbury's opens every first hour only for the elderly and people with disabilities and also gives them priority when delivering online orders. Morrisons downsizes its range by a third and Tesco closes the counters for meat, fish and pizza and its cafe areas to allow staff to be redeployed. The government is making it possible for pubs and restaurants to operate as take-away restaurants for hot food and drinks "as soon as possible" without changing their license. According to Productschap AHDB, the processing capacity of the beef industry has not yet been reduced. Incidentally, the extra sales generated by hoarding fall mainly in the cheaper segment. In the first week of March, when the first panic purchases occurred, £ 57.3 million was spent on 'hoarding messages' on top of the normal groceries (of which £ 7.2 million on canned pasta, soup and meat and £ 17.6 million on toilet paper). Sales of very long-life milk increased by 90%. 


See the status in other countries »

 

Market reporting (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:

  • Italy has announced that it will continue the lock down until 3 April.
  • Belgium is now in a lock down as well. Garden centres are only allowed to sell (animal) food, but online delivery of flowers and plants will continue.
  • The Czech Republic is now also in quarantine.
  • The expectation is that the United Kingdom will close for florists this week. Supermarkets are taking various measures (also range adjustments) to cope with the enormous demand for primary need products. The orders for Mother's Day still went pretty well, but now the question is what the consumer is doing.
  • In Switzerland the florist's shops are closed but the large retailers continue to sell flowers and plants on a large scale.
 

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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