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Market update
Wednesday 25 March 2020

 
 

Update on the new supply regulation 

The Auctioneers can adjust the supply regulation percentage per product group on a daily basis. They do this on the basis of, among other things; the market situation, price formation, the course of clock pre-sales and the throughput percentage. The supply regulation percentage is discussed with the FPC chairman or with appointed members of the FPC. The FPC is an important advisory body that can provide extremely valuable feedback and input at this time. In the next few days, coordination with the FPCs and its FPC chairmen will be further fleshed out and intensified. 

Fortunately, the maximum supply that may be made by growers is being adhered to very well. Most growers do not exceed this number, in case of doubt contact the auctioneer or Floriday. However, we also see a number of growers who do exceed the maximum supply. The auctioneers remove this supply and destroy it. The costs of this will be charged on. It is also no longer possible to return these lot(s).

We have received questions from growers about the possible inclusion of the numbers of the grower-grower regulation and the 2019 supply from the Rhein Maas Auction in the supply regulation. This is still being looked into.


Read more about the new supply regulation here »
Click here for an overview of frequently asked questions »

 

Adjusting minimum prices

Several FPC's have asked us to adjust the minimum prices upwards. We have tested this before for a single product. We are now going to adjust this for more products at the end of this week and early next week due to market conditions. We will stick to the existing regulations as much as possible. The increases are of a temporary nature and are related to the consequences of the corona crisis. Auctioneers are aware of the changes and keep in contact with the relevant FPCs about the effect of the increases.

 

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 also 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. In addition, we would like to ask growers and buyers not to bring children to the Royal FloraHolland branches. We understand your home situation, but children are not permitted at the locations. In this day and age, we have to supervise this even more strictly. 

 

Market developments Wednesday 25 March 2020

Today's total turnover (clock and direct) amounts to 4.77 million euros. A decrease of 76.8% compared to last year (compared to Wednesday 27 March 2019). The decrease compared to last year in direct sales (-76.3%) is now almost as large as the decrease in clock sales (-77.6%). Last week there was still a large difference between this (cumulatively: -33.8% vs. 85.2%).

Today's clock turnover was 1.70 million euros. A total of more than 9.9 million units were supplied for the clock. Of that, 4.1% was turned (3.6% for cut flowers, 16.9% for houseplants and 6.9% for garden plants). Yesterday's turnaround was therefore lower. At that time it was on average 5.7%.

Turnover

Units supplied

Units sold

% Turnaround

Average price

Compared to last year

Turnover compared to last year

Cutflowers

1.576.902

11.483.924

11.483.924

-36,8%

-68,5%

Indoor plants

1.032.519

824.754

824.754

-36,9%

-82,3%

Garden plants

461.185

452.939

452.939

-25,8%

-78,1%

Direct

3.070.606

12.761.617

12.761.617

-48,8%

-76,3%

Turnover

Units supplied

Units sold

% Turnaround

Average price

Compared to last year

Turnover compared to last year

Cutflowers

1.363.435

9.313.291

8.979.322

3,6%

-29,3%

-74,5%

Indoor plants

171.100

314.473

261.230

16,9%

-46,3%

-88,8%

Garden plants

169.626

351.527

327.430

6,9%

-24,2%

-77,1%

Clock

1.704.161

9.979.291

9.567.982

4,1%

-36,3%

-77,6%

Total

4.774.767

22.740.908

22.329.599

-43,0%

-76,8%

Location

Pieces supplied

Pieces destroyed

% destroyed

Cutflowers

4.721.152

172.278

3,6%

Indoor plants

167.328

26.843

16,0%

Garden plants

210.224

13.580

6,5%

Aalsmeer

5.098.704

212.701

4,2%

Cutflowers

2.452.980

126.272

5,1%

Indoor plants

133.118

25.942

19,5%

Garden plants

125.665

10.517

8,4%

Naaldwijk

2.711.763

162.731

6,0%

Cutflowers

2.139.159

35.419

1,7%

Indoor plants

14.027

458

3,3%

Garden plants

15.638

0

0,0%

Rijnsburg

2.168.824

35.877

1,7%

Cutflowers

9.313.291

333.969

3,6%

Indoor plants

314.473

53.243

16,9%

Garden plants

351.527

24.097

6,9%

Royal FloraHolland

9.979.291

411.309

4,1%

 

State of affairs lobby  

This afternoon the European Ministers of Agriculture will meet via a teleconference. Minister Schouten of LNV will make a proposal for emergency aid to the floriculture sector. This aid must be in addition to a possible Dutch emergency fund. The VBN (Association of Flower Auctions in the Netherlands) and Union Fleurs have ensured that the situation in the ornamental plant sector is high on the agenda of this Agriculture Council meeting and that European sister organisations have identified their problems and alerted their ministers. The working group on flowers and plants of the European umbrella organisation of farmers' unions and cooperatives Copa Cogeca is also closely involved. 

The VBN and Union Fleurs are also in contact with the official summit of the Commission and Agriculture Commissioner Wojchiekowski. In many other European member states the floriculture sector is given less priority and there will be little or no national support for the sector. It is therefore important that there is some form of emergency support for the sector throughout the EU. VBN and Union Fleurs advocate a scheme that can be used simply, quickly and effectively.

 

Cancellation of Trade fairs and product meetings until mid-June

Below you will find a short overview of the changes around events until mid-June:

  • Spring Fair Aalsmeer (8 & 9 April 2020) - cancelled
  • Various product meetings are moved or cancelled (you will be notified separately)
  • IFTEX Kenya (6-8 June 2020) - moved to 12-14 October 2020
  • SummerPlaza - cancelled
 

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:

Germany (Source: Ministry of Agriculture and Royal FloraHolland)
Flowers may still be sold in shops that are open because they sell "essential products for a living", e.g. supermarkets, petrol stations, DIY stores and garden centres. After this decision, the discussion about unfair competition between florists (who had to close) and garden centres broke out. In a letter to his members, the President of the Zentralverband Gartenbau explained that the difference in keeping garden centres open from flower shops was only introduced to allow the purchase of, for example, fruit trees, vegetable seed and plants and animal feed. He made an urgent appeal to his members to continue to show solidarity. 

The image is still very variable and may change at any time. In North Rhine-Westphalia, for example, the emergency store closure ordinance has been adapted for florists. They are allowed to open their flower shops in consultation with the local government and under strict conditions (more info:
https://www.floristik-nrw.de/2020/03/hinweise-zum-coronavirus). Other Länder have not yet followed suit. The policy in Bavaria now appears to be the strictest, while in Brandenburg and Mecklenburg-Western Pomerania most shops are still open. Some chains or individual stores also decide to close down themselves.

The German borders with the Netherlands are open, so free movement is possible there. The border with Austria, France, Luxembourg, Denmark and Switzerland has been closed to non-essential movements since the 20th of March. All goods are allowed to pass through unrestrictedly, so even if Germany were to impose the same restrictions on the border with the Netherlands, no restrictions are to be expected on the transport of goods, regardless of content. In the case of "fastlanes" for goods transport, priority is given to medical goods and daily agricultural and horticultural products. 

United Kingdom (Source: Ministry of Agriculture)
The Ministry of Agriculture (DEFRA) states that, provided there is a bilateral agreement with the National Plant Protection Organisation of the country in question, it accepts legible digital copies of the original phytosanitary certificate for the import of consignments of regulated plants and plant products. The measure applies provisionally for three months.
While most garden centres close, Dobbies Garden Centres remain open. Dobbies states that 70% of its turnover comes from the sale of goods that are further sold by shops designated as essential: food (food shops), do-it-yourself items (home and hardware shops) and animal supplies (pet shops). The Horticultural Trades Association (HTA) has asked the government to clarify whether garden centres can be classified as home and hardware shops. 

The British floriculture sector is threatened with enormous damage. HTA, National Farmers' Union and Royal Horticultural Society are asking for extra financial support because the sector as a whole is at risk, is highly seasonal (80% of the trade is in March-May) and the product is perishable.

France (Source: Ministry of Agriculture)
French floriculture growers are hit hard by the closure of florists and garden centres. Even though some companies are still selling through supermarkets and garden centres or pet shops that are still open to the public, the companies are in fact at a standstill; reports the national federation of horticulturists and nurseries. The pandemic comes at the worst time, because after a few weeks of bad weather, the weekend of 14th – 15th March marked the 'start of the spring season' which traditionally runs until Mother's Day (7th June this year). The spring campaign represents on average 50% of the annual turnover, up to 75% for some technically oriented parts of the ornamental horticulture sector. Minister Didier Guillaume of Agriculture and Food has called on the large supermarket chains to show 'economic patriotism' and only buy products from French farmers. In addition, the Minister called on citizens to buy French products: (achetez français)! Furthermore: open air markets are being closed to prevent the spread of the coronavirus.

France is facing a major labour problem: 200,000 seasonal workers are needed within three months. Several Ministers have said that farmers should be able to count on the help of seasonal workers this spring in order to secure agricultural production for autumn. The Ministers are proposing to relax rules for access to the labour market in this strategic sector. Spearheads include employees and self-employed people who have no (temporary) activities to temporarily strengthen this sector. Agriculture Minister Guillaume also pleads for the possibility of allowing certain foreign seasonal workers to come to France.

Italy (Source: Ministry of Agriculture)
The Italian ornamental horticulture sector is in crisis due to millions of unsold flowering pot plants. Damage in the Liguria ornamental plant growing region is estimated at € 200 million due to the stagnation in exports (-60%). Sales between the beginning of March and the end of May normally account for 70% of the annual turnover. There is a shortage of seasonal workers, mostly from Eastern European countries (Romania, Bulgaria, Poland). It is estimated that there are 370,000 agricultural workers, which puts the sector at risk of not being able to sow or harvest at crucial times. The sector proposes to use workers who are temporarily inactive from other sectors i.e. tourism and catering. 


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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