Information on the impact of the corona virus for the Dutch and international horticulture market
Cannot read this e-mail properly? Check out the online version.
Header RFH

Market update Monday 2nd November 2020

In this market update you can read more about the impact of the corona crisis on the Dutch and international floriculture market.

The market update is published on a weekly basis. If you are looking for information in the interim, you can find it in the corona file 
on our website. 

In this market update:

 

Supply regulation Gerbera, Pot Rose and Pot Chrysanthemum in force for supply from 4th November

From Wednesday 4th November 2020, supply regulation will be temporarily in force for clock supply. The Crisis Management Team (CMT) of Royal FloraHolland came to this decision this morning, at the proposal of the Operations Dealmaking department and after consultation with the FPC chairmen. Based on the volumes for 2019, the supply regulation provides clarity about the maximum numbers to be supplied for the clock. The supply regulations only apply to the three export locations (Aalsmeer, Naaldwijk and Rijnsburg) and not to the Eelde location. 

Why a new supply regulation?
The second corona wave has led to stricter measures in neighbouring countries (such as France, Belgium and Germany). As a result, we have noticed that demand is decreasing and the supply of flowers and plants on the clock is increasing. The unsold rate for some products has already increased and is expected to increase further. In order to keep this as limited as possible, a supply regulation for the Gerbera, Potted Chrysanthemum and Potted Rose product groups will come into force on Wednesday 4th November, which can shift with the development of demand. 

Maximum supply available in Floriday
From 10.00 a.m. onwards, the suppliers concerned will find in Floriday a specific overview of what can be supplied on the next auction day. This overview can be found on the Floriday dashboard. 

 

  • Do you already have a Floriday account?
    Log in via www.floriday.io and view your maximum supply on the dashboard. Tomorrow (November 3rd after 10.00 a.m. ) you will find the new regulations on the dashboard.
  • Don't have a Floriday account yet?
    Create an account at www.floriday.io/en/sign-up (via MijnRFH you can easily create an account) and log in with your Floriday login details. View your maximum supply on the dashboard

What does supply regulation look like?
On the basis of developments in the market, intensive consultation takes place between the auctioneers and the FPC chairmen. For each product group, the percentage of the daily volume that the grower is allowed to supply is determined on a daily basis. For a product group with declining market demand, this means that less clock supply can be controlled than for a product group where demand remains at the same level. With this we introduce a regulation that we can bridge in the coming period, on the way to a situation in which the market recovers. A decision tree has been developed to make a decision about this.

Important points of departure in this new supply regulation (starting for the supply of Gerbera, Potted Rose and Potted Chrysanthemum on Wednesday 4th November):

  • Each supplier has a maximum daily volume per product group based on its total volume in 2019 (number of units in direct and clock).
  • The maximum daily volume per product group includes both the direct volume and the clock volume. The clock volume counts for 100% and the direct volume for 30%.
  • The number of trading days (clock and direct) is also taken into account in determining the maximum daily volume. This gives 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. In this way we limit the unsold products. The grower may round up his maximum supply to a whole trolley so that full trolleys can always be supplied.
  • Only A1 quality is is permitted. Supplies of A2 and B quality are not traded, not even after a euro marking placed by the Quality department. In the case of a euro remark, the supply is removed from the offer and the supplier is given the choice of collecting the lot or having it destroyed at cost.
  • If growers supply more than permitted, the products will be removed from the supply. The entire supply will be destroyed at a fee.


Advantage and protection for member suppliers
For non-member suppliers, the same calculation is used as was applied earlier this spring to arrive at the maximum daily volume, with an additional reduction of 50%. This underlines the benefits of membership. All non-self-growing suppliers who bring trade for the clock that does not originate from a member of Royal FloraHolland will be banned until further notice. This measure gives members protection against dumping on the clock.

More information
In a previous news item, we set out the frequently asked questions about supply regulation.
These can be found here

Questions

  • Do you have questions about the functionality of Floriday? Please contact the Floriday Support Team via support@floriday.io or via 0174- 352070. Do you have questions about the realization of your maximum supply? Please contact the auctioneer.
  • If you have any other questions, please contact your Account Manager or Customer Service via +31 (0)88 - 789 89 89. The Customer Service can also be reached via WhatsApp (+31 (0)88-789 89 89) and email klantenservice@royalfloraholland.com.
 

Market developments international 

The most important country updates of Friday 30th October. Any changes since Friday 30th October are not included in this overview. 

France
France started their second lockdown on October 30th . President Macron announced that the lockdown will last until December 1st . Unlike the first Lockdown, a number of activities, such as public services, wholesale and food markets, will be remain open. The construction sector, public works, factories and agriculture will also continue to operate during this time. Florists will remain open this weekend in connection to All Saints' Day and will close on Monday 2nd November. 

Agrifood exports from France are down 4% in the first half of 2020, a loss of 1.3 billion compared to the first six months of 2019. The damage remained relatively limited thanks to the exceptional results achieved in cereal exports. However, micro-enterprises and SMEs in the agri-food sector have been severely affected. These companies are very important in terms of employment and certainly in rural areas outside the big cities.

United Kingdom
In all parts of the United Kingdom, new measures are in place locally based on risk categories in municipalities. These are aimed in particular at limiting social contact. Shops remain open in most cases even in the highest risk category. The exception is Wales, where all non-food retail outlets closed by October 23rd with supermarkets having to stop selling non-food products, including flowers and plants. The hospitality industry closes at 10 p.m. in England and visits to the hospitality industry are only allowed to be made with your own household except in the open air.

The quarantine rules for travellers to the United Kingdom have remained in full force.

However, remarkably more flowers have been sold (+10% between mid-September and mid-October). Surveys show that consumers are generally buying more British product and visiting farm shops more often.

Germany
The general picture is that the closure of restaurants and cafes during November is mainly detrimental to breweries and the processing of potatoes for pommes frites. In the retail sector, the general picture is mixed. Turnover has increased somewhat, but prices (e.g. for meat and milk) have fallen. The fact that the canteens still remain open alleviates the pain.

Spain
In Spain, a state of emergency has been declared until May 9th 2021. This state of emergency enables measures to be taken against Corona. These measures will change regularly and will also vary from one Autonomous Community to another. Currently, curfews are in place in all regions except the Canary Islands, and travel within Spain is very limited.

Bank Cajamar ( the 'Spanish Rabobank') has published a report on developments in the Spanish meat sector over the last few months and with an outlook ahead to the rest of 2020. 65% of the companies have seen their revenues go down, 14% up and the rest are on an equal level. Price developments are also shown in graphs in the report. The entire report in Spanish can be
found here.
 
Portugal
For the time being, the hospitality industry is still open and we see few changes in the fruit / fruit / meat / dairy market, but new measures are expected after the Council of Ministers meeting on Saturday 31st October. 
 
Poland
At the moment there is no National lockdown in Poland, but the hospitality industry is closed (only takeaway allowed) and museums have to work with sanitary regulations. Weddings are not allowed throughout the country. For the most part, events take place online. New announcements are expected in the near future due to a large increase in infections. Poland's internal borders with other EU Member States are open. As of 30th October, there is currently no quarantine measure on entry into Poland. However, on return to the Netherlands, quarantine will apply, including for labour migrants. Always check the latest travel advice from Foreign Affairs. 

The habits of Polish consumers have changed due to the pandemic. 82% of consumers do their shopping less often (an average Pole normally visits a shop almost 45 times a month) but purchases have became larger (52%). In general, Poles search for basic products (vegetables, fruit, flour). According to several specialists, corona time is a good time to present good eating habits to consumers and to offer more fruit and vegetables into the daily diet. Several customers are also looking for organic and eco products and are also shifting to basic food. So it turns out that the pandemic can change consumers' habits significantly, which could also have an impact on the food sector in Poland at a later stage.  

Belgium 
The Belgian government has already taken additional measures in recent weeks, such as the closure of the catering industry and the curfew. Extra measures are now being added. In principle, the drastic measures will last six weeks and take effect at midnight on 01 November. 

Meetings outside are only allowed with a maximum of four people at a safe distance. And the rule of four indoors expires. Only one person may be invited at a time.

The vacation parks will close as of Tuesday. And there is closure of many stores, the so-called non-essential stores. In order to avoid the competitive disadvantage, it is not intended that supermarkets continue to offer certain goods that are normally offered in those stores. Unlike in the first period, flower stores, garden centers and hardware stores may remain open. 

Italy 
In Italy a curfew is in force and travel between different areas is not allowed.

 

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 Facebook, WhatsApp (+31 (0)88-789 89 89) and email customerservice@royalfloraholland.com

 
Image more news
Follow us via
Footer RFH

Royal FloraHolland has compiled the information in this message with the greatest possible care. No rights can therefore be derived from the information provided. Royal FloraHolland reserves the right to change or withdraw the information provided without further notice. Royal FloraHolland accepts no liability whatsoever for the content of this information or for any damage resulting from the use of the information provided. No part of this information or representation may be reproduced or made public without the prior written consent of Royal FloraHolland.

Don't want to receive this news anymore? Click here to unsubscribe.