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Market update
Friday 20 March 2020


New supply regulation in force on Tuesday 24th March

New supply regulation in force on Tuesday 24th March
From Tuesday 24th March a new supply regulation is in force for clock supply. Based on the volumes for 2019, this regulation provides clarity about the maximum daily volume that may be supplied to the clock. For the clock supply before Monday 23rd March, last week's supply regulation is still in force.

Why a new supply regulation?
At the beginning of this week, all growers were called upon to temporarily supply fewer products as an emergency measure. Since then, we have been monitoring daily which and how many flowers and plants may be supplied in order to keep the turnaround as limited as possible and to restore price formation. Because Royal FloraHolland assumes that trade will not recover to normal levels in the coming months, a new supply regulation has been drawn up that can evolve in line with demand developments.

Supply regulation Monday 23rd March
For the auction on Monday 23rd March, the following supply regulation will be adhered to:

  • For flowers and houseplants a maximum of 30% of the supplied volume of Monday 9th March 2020 may be supplied.
  • 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
  • You can sell up to 75% of your clock supply via Clock Presale (in Floriday). 

Read more in the news item >


Research: Auctioning in one location does not give a cost advantage

Because of the declining volumes, Royal FloraHolland has investigated scenarios to keep costs to a minimum, without jeopardizing the continuity of services. One of these scenarios is: concentrate all logistics and auction activities at a single location. The underlying idea is to optimize staffing levels and thus reduce costs. With the Emergency Fund for Bridging Employment (NOW), reducing staffing levels does not bring these financial benefits. However, the disadvantages remain: arranging the supply logistics to a single location, a later delivery to customers housed outside that location, what to do with the logistic resources, etc. In addition, the facility and IT savings of the 'one-location' scenario are also very limited. 

What do we do? 
Of course we implement measures that save costs and/or make the work of our members and customers easier. For example, at the request of many customers, the auction speed has been reduced and the number of clocks has been reduced. In consultation with suppliers and transporters, the supply times are adjusted. At the locations, counters are merged, opening hours are adjusted, unused rooms are no longer cleaned, etc. Royal FloraHolland will continue to look for further cost savings for members and buyers in the coming period. The basic principle remains that we leave our services intact to ensure that we take every opportunity together to continue selling flowers and plants. 

Read the newsarticle »


Adjusted auction schedules 

At the request of many customers, a number of clocks are combined:
Friday 20th March

  • The rose clocks of location Naaldwijk (Clocks 3 and 8) and Rijnsburg (Clocks 1 and 2) will be merged from tomorrow (read: Friday 20 March 2020). At Naaldwijk the roses will be auctioned at Clock 8 and in Rijnsburg at Clock 2.

Monday 23rd March

  • 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.

View the auction schedule here >


Market developments Thursday 20 March 2020

Today's total turnover (clock and direct) amounts to 6.25 million euros. A decrease of 85.5% compared to last year (compared to Friday 22 March 2019). Cumulative turnover in week 12 is 54.2% compared to the same week in 2019.

Today's clock turnover was 1.32 million euros. A decrease of 71.8% compared to last year. In total, almost 11 million items were delivered for the clock. Of these, 6.2% went through the roof (5.0% for cut flowers, 32.6% for houseplants and 13.5% for garden plants). Yesterday the turn on the clock was 13.6%, Wednesday it was 17.4% and Tuesday it was 20.3%.    


International Lobby

Royal FloraHolland is doing everything in its power to keep the floriculture sector afloat and to support growers and trading companies in these difficult times. Below are the actions we are currently working on:

  • We are in contact with the Kenya Flower Council (KFC) and the Ethiopian Horticulture Producers Exporters Association (EHPEA). From this lobby there are positive signals about the support the local governments want to offer. In addition to support funds for credit, we are also working on tax deferrals, VAT collection and measures to support the payment of wages.

  • In Israel there are direct contacts with the Government but here the local agents are working together. In general, the Government provides support for credit, temporary unemployment and tax measures.

  • In Italy and Spain we are not organized as a floriculture sector. For both countries, broadly the same commitments apply as above. 

  • With regard to sales, the European lobby is in favour of keeping sales outlets open and making transport for goods available for floricultural products.

  • As a result of the loss of passenger transport and access restrictions, aviation is also coming to a standstill. Part of the freight capacity is also used by floriculture. The flow from Kenya to America has come to a standstill due to the lack of this capacity. In the short term, this problem will be smaller, but if trade picks up, transport capacity may become an issue. We are already noticing this for applications from China.


I would like to draw your attention to the Connect EAB

In response to the corona crisis, Royal FloraHolland receives many questions about the processing of the Connect EABs. In this message we would like to inform buyers and growers about this.

For buyers
As a buyer, you may need insight into the EABs that will be invoiced to you. If you submit a Connect EAB, Royal FloraHolland will send you a delivery notification (DESADV) within five minutes of receiving the EAB. (You can subscribe to this free of charge via My Royal FloraHolland.) By monitoring this delivery message, you can contact the grower on time and on the same day if the EAB needs to be changed or cancelled.

Are you receiving an EAB that you are unable to identify or for which no delivery has been made? Please contact the grower directly. In that case the grower can change or cancel the EAB in time. Even if the EAB has been invoiced, it is the easiest way for the grower to change or cancel it.

For growers
As a grower, you must inform your buyer about the delivery correctly and on time. Therefore, check your delivery with the EAB, add your buyer's order reference and send the EAB prior to delivery. This prevents miscommunication in this time of crisis. Saving EABs is not allowed and is at the grower's risk.

For more information about the delivery notice for direct trading,
click here >> 


Cancellations of direct trade orders: Who does the damage lie with?

We get a lot of questions about cancellations of direct trade orders. Who pays for the costs in this situation? Buyers invoke force majeure. But when is there a case of force majeure? 

Read more in this article >>


Market reporting international (source: Royal FloraHolland)
You can find more information about the situation per country in a Royal FloraHolland market report. A number of highlights from today's report:

Germany (source: Antenne Bayer)
Bavarian Prime Minister Markus Söder has announced the new measures against the further spread of coronavirus. It imposes an exit restriction for the whole of Bavaria. In addition, restaurants and DIY stores are to be completely closed. The following shops will be closed from Saturday 21st March: all restaurants and beer gardens, construction, garden centers and hairdressers. In addition, visits to hospitals and old people's homes are prohibited. Anyone violating this rule can expect high fines of up to 25,000 euros.

United Kingdom (source: Ministry of Agriculture):
Hamster behaviour has shifted to garden centres, where sales of grow-your-own products have tripled. At the same time, the industry expects only half the usual number of customers for next Sunday's British 
Mother's Day.
Other new Government measures in relation to retail: relaxation of driving time rules for drivers delivering food (until 16th April) and no 5 cent surcharge on plastic bags for online purchases (for speed and to prevent contamination due to reuse of crates). Inspections for quality marks such as Red Tractor are postponed or, if possible, carried out remotely.

France (source: Ministry of Agriculture):
Agrofood companies face two main challenges: the shift from catering consumption to retail consumption and continuation of activities while employees are increasingly reluctant to work or forced to stay at home. Agrofood companies that normally supply the hospitality industry need to adapt to the requirements of hypermarkets and supermarkets, such as packaging and labelling. The usual suppliers to supermarkets and hypermarkets have to deal with increasing demand and decreasing availability of employees. Even though the transport of goods is not currently hindered by restrictive measures at the border, waiting times at the border have become considerably longer, sometimes up to more than 20 hours in some locations. France supports the EU Commission's proposal to establish priority lines at the border for the transport of food.  The closure of garden centers as a result of the corona epidemic - accounting for 70% of this sector's turnover - is forcing growers to destroy a large part of their production at the most crucial time of the year, which had just begun with the arrival of good weather. For many growers, the next three months normally account for 50% of annual sales.

Colombia (source: Ministry of Agriculture):
From Monday 23rd of March at 00:00, all international flights will be banned for a period of 30 days. Continuity of cargo (import and export) operation is still unclear.

View the status by country (Source: Royal FloraHolland) >>


One-off distribution campaign by Royal FloraHolland

One-off distribution campaign by Royal FloraHolland
In cooperation with Bloemenbureau Holland and the VGB, we provided a large number of care providers with a beautiful bunch of flowers this week. Royal FloraHolland, the VGB and Bloemenbureau Holland support all positive activities with regard to care workers, but now we all have to work hard again to help our sector as much as possible by encouraging consumers buy flowers and plants. We did this once to put the flowers (which would otherwise have been thrown away) in the spotlight for the care workers. Our current efforts are mainly focused on helping the growers, trade and points of sale of our industry that are currently also struggling.


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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