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Market update
Monday 23 March 2020

 

New supply regulation in force tomorrow

As of tomorrow, a new supply regulation is in force for the clock supply. Based on the volumes for 2019, this regulation clarifies the maximum daily volume that may be supplied to the clock. 

Important starting points for this supply regulation are:

  • Each supplier has a maximum daily volume per product group based on their total volume in 2019 (number of units in direct and clock).
  • Both the direct volume and the clock volume of 2019 count towards the maximum daily volume per product group. The clock volume counts for 100% and the direct volume for 30%. 
  • The number of trading days in 2019 (clock and direct) will also be taken into consideration in determining the maximum daily volume. This will give seasonal growers a proportional daily volume.
  • The auctioneer determines per day, per product group, the maximum percentage that growers are allowed to supply from their daily volume for the clock. The auctioneer uses this to steer him to set a good price and to limit turnarounds. Supply and demand are thus attuned to each other.
  • The grower has a voluntary minimum of 1 whole cart. After the first full cart, the supply regulation applies. 
  • Growers who supply more than permitted will be removed from the supply. The entire supply will be destroyed and charged.

View your maximum supply in Floriday
To help you determine the maximum daily supply, you will find the numbers for your specific situation in Floriday. Go to www.floriday.io and log in with your username and password. You will be directed to the Floriday dashboard and at the top you will find the maximum supply for tomorrow. 
Do you have questions about your maximum supply? Please contact the auctioneers.


Read more in the news item »

 

Buyers: use KOA

Royal FloraHolland asks buyers to switch to Remote Purchasing (KOA), in order to purchase from their own location. In addition, all KOA users are explicitly asked to avoid the stand workstations at the Royal FloraHolland locations. 

Don't have a KOA connection yet? Then contact the KOA-Helpdesk to set it up: via telephone number +31 (0)88 - 789 89 89 (option 2). 

The Digital Clock Support colleagues are present 5 days a week at various locations in Aalsmeer, Naaldwijk and Rijnsburg. They will be happy to help you install KOA on your PC. You can also get help remotely. 

Would you like more information?

Read here how you can purchase remotely »

 

Auction schedule and aggregation of clocks

Last week and this week Royal FloraHolland decided to merge a number of clocks. In total there will be 7 bells fewer working this week (of which 5 flower clocks and 2 plant clocks).  

Rijnsburg (from 7 to 5 clocks):

  • Clock 1 & 2 merged into clock 1
  • Clock 3 & 4 merged into clock 3 (from Tuesday 24th March)


Naaldwijk (from 10 to 8 clocks):

  • Clock 3 & 8 merged into clock 8 
  • Clock 11 transferred to clocks 12 and 13 (as of Monday 23rd March)


Aalsmeer (from 14 to 11 clocks):

  • Clock 8 & 10 merged into clock 8 (per Monday 23rd March)
  • Clock 11 transferred to clocks 12 & 13 (per Monday 23rd March)
  • Clock 14 transferred to clocks 15, 16 and 17 (as of Monday 23rd March)


View the current auction schedule online »

 

Other developments on the clock
In addition to the new supply regulation and the merging of auction clocks, the minimum prices for certain product groups are currently being reviewed, in cooperation with the heads of each FPC. In addition, the maximum percentage for the clock pre-sale offer is also being looked into.  

 

Market developments Monday 23 March 2020

Today's total turnover (clock and direct) amounts to 6.55 million euros. A decrease of 76.1% compared to last year (compared to Monday 25th March 2019). The daily turnover is approximately on the same level as last Wednesday, Thursday and Friday. The decrease compared to last year of the direct turnover (-72.0%) is now almost as big as the clock turnover. Last week there was still a big difference between this (-33.8% vs. 85.2%).

Today's clock turnover was 1.96 million euros. A decrease of 82.3% compared to last year. In total, almost 10.7 million units were supplied for the clock. Of this, 2.6% was turned (1.7% for cut flowers, 21.4% for houseplants and 5.3% for garden plants). The percentage of unsold products is therefore at a much lower level than last week.  At that time it averaged 28.2%.

Turnover

Pieces supplied

Pieces sold

% unsold

Average price compared to last year

Turnover compared to last year

Cut Flowers

1.933.841

13.108.853

13.108.853

0,0%

-40,8%

-79,4%

Indoor plants

1.967.917

1.215.986

1.215.986

0,0%

-2,3%

-64,8%

Outdoor plants

684.953

541.508

541.508

0,0%

-6,2%

-51,1%

Direct

4.586.711

14.866.347

14.866.347

0,0%

-20,7%

-72,0%

Turnover

Pieces supplied

Pieces sold

% unsold

Average price compared to last year

Turnover compared to last year

Cut Flowers

1.607.212

10.221.826

10.050.908

1,7%

-30,7%

-81,1%

Indoor plants

208.741

433.952

341.080

21,4%

-49,1%

-88,7%

Outdoor plants

145.809

323.401

306.232

5,3%

-33,2%

-79,2%

Clock

1.961.761

10.979.179

10.698.220

2,6%

-34,6%

-82,3%

Total

6.548.472

25.845.526

25.564.567

1,1%

-23,9%

-76,1%

Location

Pieces supplied

Pieces unsold

% unsold

Cut flowers

5.311.366

63.254

1,2%

Indoor plants

231.388

54.317

23,5%

Outdoor plants

177.165

10.580

6,0%

Aalsmeer

5.719.919

128.151

2,2%

Cut flowers

2.689.366

63.712

2,4%

Indoor plants

182.796

37.503

20,5%

Outdoor plants

131.490

6.589

5,0%

Naaldwijk

3.003.652

107.804

3,6%

Cut flowers

2.221.094

43.952

2,0%

Indoor plants

19.768

1.052

5,3%

Outdoor plants

14.746

0

0,0%

Rijnsburg

2.255.608

45.004

2,0%

Cut flowers

10.221.826

170.918

1,7%

Indoor plants

433.952

92.872

21,4%

Outdoor plants

323.401

17.169

5,3%

Royal FloraHolland

10.979.179

280.959

2,6%

 

Ornamental horticulture sector in the news

The International media rang the bell, especially at the end of the week. The images of unsold flowers that had to be destroyed attracted attention. In addition to the usual attention from Gabot and TASPO from Germany, among others, two interviews by international press agencies were of great importance. The Associated Press (AP) and AFP (France) together ensured worldwide coverage of the crisis in Dutch ornamental plant cultivation. The Associated Press visited Aalsmeer and AFP visited the branch in Naaldwijk. AFP made extensive recordings of the dumping of flowers. In a period of one week more than 500 articles were published worldwide, including in the New York Times. Both the AP and AFP press agencies also recorded a video interview. 

 

The Holland Flower Council starts a consumer campaign

The aim of the Flower Council is to continue to stimulate consumers to keep flowers and plants at the top of consumers’ minds thus resulting in purchases. In these difficult times, this is even more important than usual. Below is an overview of the activities that BBH has undertaken and/or will undertake: 

  • Together with Royal FloraHolland and the VGB, the Flower Council of the Netherlands (Bloemenbureau) has fleshed out the successful giving flowers to the care sector. The Flower Council has made a very active contribution to realizing a lot of media attention through our PR agency.
  • Bloemenbureau Holland is currently working on a campaign aimed at keeping flowers at the top of consumers’ minds as well as among consumers, even during the corona crisis by encouraging consumers to buy. This idea was created last week and the planning is that the campaign will be included this week to become public as soon as possible. The campaign is intended for the core countries and will be supported in different ways per country, depending on the degree of availability of product in the various points of sale per country. We expect to invest several hundreds of thousands of euros in this campaign. 
  • Furthermore, the Flower Council has drawn up a document with recommendations and suggestions to communicate about flowers and plants in a relevant way in this time of crisis. These guidelines offer growers (groups), trading parties and points of sale the opportunity to also use their own means of communication with relevant and stimulating messages.
  • The Flower Council is currently also affiliated with Flowers4Oxygen and has been asked to help realize extra media attention, especially in the foreign countries. 
  • The Flower Council is in consultation with various retail organizations that have approached us to set up joint actions.
  • We are also in constant dialogue with PSPs and trade organizations who approach us for cooperation, suggestions or creative input on various subjects. 
 

Enforcement of the Plant Passport suspended as from pot size 10

Since Saturday December 14th 2019, a plant passport was required to be able to trade plants. The plant passport at pot level of pot size 10 and larger would be in force from July 1st 2020. In view of the current circumstances it has been decided to postpone this enforcement rule until further notice. 

For plants with pot size 19 and larger, the plant passport is mandatory at plant level and will therefore continue to exist. The plant passport at barrel level applies to all plants with pot sizes smaller than 19. We will also continue to enforce these current rules. Although a large majority of the suppliers of plants from pot size 10 onwards already use the plant passport at plant level, we will postpone the enforcement rule until further notice. 


Click here for more information »

 

Market reporting international (source: Royal FloraHolland)

You can find more information about the situation per country in the Royal FloraHolland market report. A number of highlights from today's report:

Germany (Source: Ministry of Agriculture and Royal FloraHolland)
Points of sale for flowers and plants can remain open. This means that, in addition to supermarkets of course, DIY stores, garden centres and (again) florists may also be open. However, they must adhere to the very, very strict requirements with regard to 'social distancing'. Also in NordRhine-Westphalia, the most important market for flowers and plants, this is the policy until further notice. In Bavaria, stricter rules have applied since Saturday, which most other Bundesländer have not yet opted for. 
Last night, the copper stand of Veiling Rhein-Maas (VRM) was 'converted' to the new requirements. Of the 600 seats, 155 can still be used. Of course, VRM is also investing heavily in more purchasing via KOA.

United Kingdom (Source: Ministry of Agriculture)
Fairs, shows and events have been cancelled until late June. The famous Chelsea Flower Show (19th-23rd May) wants to develop a virtual alternative. FPC, the trade association for the trade in fruit, vegetables and floriculture products, advocates (once again) temporary "light-touch, risk-based" plant health inspections for imports. The reason for the request is that shipments of perishable products are delayed on their journey to the United Kingdom due to lockdowns and staff shortages elsewhere. After-sending original certificates also fail to find their way to their final destination, or do so too late. FPC wants the requirement to produce original certificates (direct or after-shipment) to lapse, so that more consignments can be released immediately at the border.

France (Source: Ministry of Agriculture)
Yesterday there was uncertainty about transport to France. The Agriculture Council reports that two drivers are allowed in the cabin and that a health certificate is not required. If they have such a certificate, that's better. France has a similar regulation as the Netherlands for optimal traffic flow and supplies. 

Russia (Source: Ministry of Agriculture)
The Federal Veterinary and Phytosanitary Surveillance Service (Rosselkhoznadzor) simplifies the procedure for processing batches of animal and plant products imported into Russia in order to avoid disruption of the supply of plant and animal products. The registration of goods controlled by Rosselkhoznadzor is carried out on the basis of copies of veterinary and phytosanitary accompanying documents. All necessary measures to confirm the authenticity of these documents will be taken together with the competent services of other countries.

Colombia and Ecuador (Source: Royal FloraHolland)
In Colombia to date 231 people have been infected with Covid-19 and 2 have died. Bogotá the capital has 40% of the cases; 60% of the flower production takes place in the savannah of Bogotá. From Wednesday 24th March there is a lock down in Colombia, provisionally until 13th April (just after semana santa, where normally everyone travels). Essential services will continue (also sea freight). Ecuador today has 789 infected and 14 dead, Guayaquil has 45% of the cases followed by Pichincha, one of the most important flower production regions near Quito. Colombia and Ecuador have declared a state of emergency and started a nationwide quarantine. There are travel restrictions and airports have been closed to all international passenger flights. Freight flights are still allowed, but due to low demand we expect more cancellations until mid-April or further notice. Most airlines to the US and Europe stop such as KLM, Lufthansa, Iberia, American, United, Delta and only a few are available in Cargolux, Emirates and Turkish Latam. Exports of flowers have decreased by 80% and are expected to be 100% in the coming week, so all markets are closing and customers will stop all remaining orders from all markets. The U.S. is expected to close flower imports from March 25th. Many growers have decided to stop exporting for at least twenty days from now and are sending most of the workers home. All harvested flowers will be destroyed and used for composting. Read more online...


Find the LNV update per country in this news item »
Read the full Market Update 23 March 2020 »

 

More information 
In the corona live blog you can follow the latest news from the auction; www.royalfloraholland.com/corona-en

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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