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Market update
Tuesday 24 March 2020

 
 

Auction rooms available until further notice

Yesterday, the Dutch Cabinet has taken additional measures to deal with the coronavirus. As a result of these measures, Royal FloraHolland has decided to keep the auction rooms available until further notice. There will simply be an auction. The measures taken earlier remain in force.

 

Update on the new supply regulation 

As of today, the new supply regulation has come into force for the clock supply. Based on the volumes for 2019, this regulation provides clarity about the maximum daily volume that may be supplied for the clock on the next auction day. 
This clarity is fortunately there for most of you, but we can also see that this process is not yet automatic. This is because there are many exceptions to the rule. For example, last year's growers have either expanded or downsized. Growers who have switched cultivation or switched to a collective. Exceptions that we work on with all our might and power in order to provide clarity for everyone. If you have any questions or doubts about the maximum quantities shown in Floriday, please contact the auctioneer. 

What is new in the supply regulation?
From now on, the growers of seasonal products will be taken into account in the calculation of the maximum supply. The calculation takes into account the start and end dates of the seasonal products in question and the auction days on which these products were offered in 2019. This creates a more realistic picture of the maximum quantities that can be supplied and gives (seasonal) growers more space to supply.

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? 
Contact the auctioneers.

Read the five frequently asked questions (FAQs) and answers in this news item »
In this news item you will find the most important points for the new supply regulation »

 

Buyers: use KOA

Royal FloraHolland asks buyers to switch to Remote Purchasing (KOA), in order to purchase from their own location. The auction rooms will remain open until further notice, but Royal FloraHolland explicitly asks all KOA users to avoid the stand workstations at Royal FloraHolland locations. 
Do you not yet have a KOA connection? Then contact the KOA-Helpdesk to set up your connection as soon as possible: via telephone number +31 (0)88 - 789 89 89 (option 2). The Digital Clock Support colleagues are present 5 days a week at the locations 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 »

 

Organize your own work according to safety regulations

Do you have your own activities on the auction grounds of Royal FloraHolland? For example, in the processing of flowers and plants? We would like to ask you to observe the 1.5 metre limit in your daily work. Royal FloraHolland employees are instructed, for example, to keep a distance of 1.5 metres when delivering products. We would also like to call on you to observe these measures. 

 

Market developments Tuesday 24 March 2020

Today's total turnover (clock and direct) amounts to 7.14 million euros. A decrease of 73.7% compared to last year (compared to Tuesday 26 March 2019). The daily turnover is approximately at the same level as last Wednesday, Thursday and Friday. The decrease compared to last year in direct sales (-70.0%) is now almost as large as the decrease in clock sales (-82.1%). Last week there was still a big difference between this and last week (cumulatively: -33.8% vs. 85.2%).

Today's clock turnover was 1.50 million euros. A decrease of 82.1% compared to last year. In total more than 9.5 million units were supplied for the clock. Of that, 5.7% was turned (4.8% for cut flowers, 22.2% for houseplants and 10.7% for garden plants). The throughput is therefore more than twice as high as yesterday. At that time it was on average 2.6%.
    

 

Turnover

Units supplied

Units sold

% Turnaround

Average price

Compared to last year

Turnover compared to last year

Connect

Cutflowers

2.527.231

18.774.581

18.774.581

-35,9%

-70,8%

Indoor plants

2.073.557

1.295.668

1.295.668

-18,3%

-73,2%

Garden plants

1.040.019

573.328

573.328

34,5%

-56,4%

Connect

5.640.807

20.643.577

20.643.577

-31,8%

-70,0%

Turnover

Units supplied

Units sold

% Turnaround

Average price

Compared to last year

Turnover compared to last year

Clock

Cutflowers

1.168.937

8.752.188

8.328.534

4,8%

-36,4%

-80,3%

Indoor plants

171.484

355.926

276.957

22,2%

-49,8%

-89,9%

Garden plants

163.523

407.463

363.865

10,7%

-28,2%

-79,3%

Clock

1.503.944

9.515.577

8.969.356

5,7%

-41,2%

-82,1%

Total

7.144.751

30.159.154

29.612.933

-32,2%

-73,7%


 

Location

Pieces supplied

Pieces destroyed

% destroyed

Cutflowers

4.529.098

264.720

5,8%

Indoor plants

194.641

45.848

23,6%

Garden plants

230.237

18.053

7,8%

Aalsmeer

4.953.976

328.621

6,6%

Cutflowers

2.399.862

143.923

6,0%

Indoor plants

145.502

29.376

20,2%

Garden plants

162.900

25.545

15,7%

Naaldwijk

2.708.264

198.844

7,3%

Rijnsburg

Cutflowers

1.823.228

15.011

0,8%

Indoor plants

15.783

3.745

23,7%

Garden plants

14.326

0

0,0%

Rijnsburg

1.853.337

18.756

1,0%

Cutflowers

8.752.188

423.654

4,8%

Indoor plants

355.926

78.969

22,2%

Garden plants

407.463

43.598

10,7%

Royal FloraHolland

9.515.577

546.221

5,7%

Continuation of National Auctioning and 100% Digital programmes

Royal FloraHolland has decided to continue the strategic projects 'National Auction' and '100% Digital' for this year. 

National Auctioning  
National auctioning is one of the key topics of Royal FloraHolland's strategy. We continue to work as much as possible. The aim is to roll out National Auctioning in 2021. Unfortunately, the current situation has forced us to postpone the first pilot.  We informed you about this in an earlier report. 

At the moment there is still no insight into how the situation surrounding the coronavirus in the Netherlands will develop in the future and which measures are associated with it. Therefore, a new starting date for the pilot project is not yet determined. We will keep you informed of further developments.

100% Digital
For the program 100% Digital the goal is still to run all direct transactions over Floriday at the end of this year. The Floriday team works, even during this hectic period, on the development of the functionalities that make 100% Digital possible.  To this end, the links between software packages and Floriday will also have to be made this year, so that all growers can handle their direct transactions via their own software package or on the Floriday screen. We will keep you informed of further developments.

We work behind the scenes on our strategic projects 'National Auctioning' and '100% Digital'. The day will come when this crisis is over and we as a sector must be future-proof and be able to achieve rapid growth. 

 

Quarterly rent to be changed into monthly rent until 1st January 2021

To date, the majority of RFH's spaces are charged in advance on a quarterly basis. As of April 1st, this is temporarily changed to monthly rent and the tenant pays at the beginning of each month. As of January 1st, 2021, the rent will automatically be invoiced per quarter as before.

As of January 1st 2021, the rent will automatically be invoiced per quarter again. A condition for this arrangement is that the rent is paid in full until March. For those who already had monthly rent, nothing will change. 
 
Royal FloraHolland will only temporarily adjust the rent scheme, because it does not find the existing scheme appropriate in the current crisis period. As already mentioned, Royal FloraHolland cannot meet growers and buyers with urgent financial problems in any other way. The banks are the appropriate body to do this. 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. 

 

State of affairs lobby 

On Monday, the European Commission issued new directives to ensure a smooth flow of lorries at border crossings. It is now known that agricultural and fresh produce will also come under the EU green lane. In the event of a lockdown, lorries may continue to drive with agricultural and fresh produce, but ornamental horticultural products are not explicitly excluded. 

Furthermore, the final application for the emergency fund will be sent to the Ministry of Agriculture this evening.

 

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

United Kingdom (Source: Ministry of Agriculture)
With immediate effect there are far-reaching restrictions for individuals and companies:

  • People are only allowed to leave their homes for "shopping for basic necessities" (food, medicine); for medical reasons; to care for or help vulnerable people; and to travel to and from work when absolutely necessary.
  • All shops selling non-essential goods must close, including flower shops and garden centres. For example, flowers and plants may still be sold in convenience stores, hospitals, DIY stores, and gas stations. 
  • There is a ban on meetings of more than two people, except if they are members of the same household.
  • Parks remain open, but libraries, playgrounds, outdoor gyms and churches and places of worship are forbidden.


Supermarket Waitrose will withhold essential supplies for NHS employees and give them priority at the cash register upon presentation of an NHS pass. After Sainsbury's, Tesco and Asda also Lidl and Aldi will shorten their opening hours so there will be more time for restocking. Like the retail sector, the British horticultural sector is hoping to attract vacant catering staff to fill staff shortages, in this case mainly caused by labour shortages in the EU as a result of lockdowns.

Belgium (Source: Ministry of Agriculture)
According to the Vlaamse Boerenbond (Flemish Farmers' Union), the trade in ornamental horticulture products has virtually come to a complete standstill, precisely in the run-up to the peak season. After all, for most ornamental plant cultivation products, 20 percent (open field nursery) to 85 percent (bedding and balcony plants) of the turnover is realised in the period from March 15th to May 10th (Mother's Day). Ornamental growers therefore do not understand why flower shops and garden centres in the Netherlands and Germany are allowed to remain open.

Germany (Source: Ministry of Agriculture)
Germany is expected to experience a deep economic recession of between 1.5% and 6% in 2020. When the Corona crisis is over, however, the economy could grow strongly again in 2021, 7.2%-10.9%. According to the Kieler Wirtschaftsforschungsinstitut (IfW). The platform www.daslandhilft.de has been launched on which jobseekers can find vacancies in agriculture. There are several initiatives throughout Germany to link temporary workers to farmers with a shortage of foreign workers at harvest time. A number of digital platforms were developed this weekend at a hackathon #WirvsVirusHack organised by the Federal Government. Last Saturday, Landgard called on everyone who is available to apply for work at the many nurseries in Germany. For this Landgard used the Facebook account of '1000 Gute Gründe' which has a large reach among young people. Through Facebook, people who register are referred to www.saisonarbeit-in-deutschland.de.  Other organisations also use this online platform. From the reactions on Facebook, it is still difficult to link supply and demand. Landgard also reported that it is consulting with the German government on keeping migrant workers sufficiently and 'unbureaucratically' available, and even mentioned special 'flights' to mobilise workers.


Find the LNV update per country in this news item »
Find the complete Corona market report here »

 

More information 

Keep an eye on the Corona file on the Royal FloraHolland website for up-to-date information about the corona virus and Royal FloraHolland. 

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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