We inform you about the impact of the corona virus on the Dutch and international horticulture market.
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Market update
Monday 16 March 2020

Dear sir/madam,

In this market update we inform you about the impact of the corona virus on the Dutch and international horticulture market. 

In this corona market update you will find more information about:

 

Emergency measure: Limit clock supply

This morning, Royal FloraHolland asked growers to temporarily supply fewer products:

  • For flowers for tomorrow (17 March) we apply a maximum percentage of 30% of the number of flowers compared to last Tuesday 10 March. This is 50% for houseplants and 75% for garden plants. Above these percentages, products will not be auctioned.
  • Moreover, A2 and B quality may no longer be supplied for flowers and plants.
  • Products will also no longer be over-auctioned.


Why this measure?
Last Friday 13 March, 20% of the supply was destroyed because there were no buyers for it. This morning, this historically high percentage was much higher for flowers and plants. Read more below. 

How will the measure be enforced?
The Electronic Delivery Letters arriving before tomorrow (17 March) will now be checked for the announced emergency measure. If the supply does not meet the maximum supply percentages, growers will be asked by telephone to keep the supply in the garden.

Read the news report here >

 

Increase in KOA connections 

Last weekend and today the number of connections to KOA has increased, allowing more and more buyers to buy remotely. Partly because of this, the stand occupancy at all locations (including Rijnsburg) was under 100 people today.

 

Market developments Monday 16 March 2020

Today's total turnover (clock and direct) amounts to 16,7 million euros. Today's clock turnover was only 1,7 million euros (10%). A total of 30,9 million units were supplied. Of this, 46,4% has been turned (69% for cut flowers, 48% for houseplants and 40% for garden plants).

Over the clock total, the average price was -63.7% less than last year. Turnover is also 83.1% less than last year. For cut flowers the average price compared to last year is -69.4%, for houseplants -47.7% and for garden plants -39.9%. Turnover for cut flowers was -85.9%, for houseplants -75.7% and for garden plants -63.4%.

Attention: The turnaround of houseplants increased sharply in the last hour of the auction.

Clock

Turnover ()

Pieces supplied

Pieces sold

% Embossing

Average price compared to  last year

Turnover compared to last year

Total

1,732,957

30,983,329

16,603,535

46.41%

-63.70%

-83.18%

Cut flowers

1,133,495

28,830,801

15,461,403

46.37%

-69.44%

-85.94%

House plants

437,330

1,496,120

689,126

53.94%*

-47.70%

-75.66%

Garden plants

162,133

656,408

453,006

30.99%

-39.90%

-63.39%

 

Representation of interests by Royal FloraHolland 

Royal FloraHolland does its utmost to exert pressure and influence on political decision-making, mainly in The Netherlands, but also at EU level. We talk to various parties with the main aim of getting emergency loans going via banks and government guarantees for growers and buyers with acute payment problems.

We advise growers and trading companies to properly register their losses! You can start collecting proof for losses by e.g. pictures and bookkeeping.   

 

Update per export country by Ministry of Agriculture

In this report you will find an update per export country of the Ministry of Agriculture, Nature and Food Quality (LNV) that is involved in the coronavirus crisis measures. Please note: This is a snapshot, the situation may vary per hour.

Important updates for:

India:
Imports from China and the EU are particularly affected. Imported plants must be quarantined for 2-3 weeks longer because of coronavirus (samples are tested by IARI). Trade in basic material has been halved. For the time being, Dutch cattle feed companies are focusing more on dairy/pig production, but are putting investments on hold and restructuring teams. The export-oriented rose production around Bangalore has been affected by a ban on the import of goods from India into the Gulf States. Retailers are facing a 15-45% increase in demand, particularly for staple foods. This causes shortages of onions, potatoes, rice and wheat. Shortages of imported goods such as coffee, diapers, dried fruit, oil and cereals are also expected; purchasing procedures are being adjusted.


Kenya:
The government prohibits all travel in and out of the country. Only Kenyan citizens with a valid passport are admitted if they perform a test with a positive result. All Kenyans who have arrived in the country in the last 14 days must be quarantined themselves. All schools and educational institutions are closed. Government offices and companies must allow employees to work from home. No cash transactions are allowed. Meetings such as weddings, funerals, church and shopping malls, crowds on public transport, visits to hospitals aren’t allowed. In general, less freight transport to/from Nairobi. Expected disruptions in flight schedules. Very minimal deliveries for auction flowers. Growers do not send all flowers but destroy them at the nursery. The direct trade route with the US has decreased. Re-routing is necessary (longer route affects price, quality, etc,). Operational big impact for forwarders, staff sent on leave. Kenya and Nairobi still have a good 110 tons for UK Mother's Day.

Ethiopia:
All Ethiopian schools, except public universities, are closed for 15 days as of today. 

Read more >

 

Support with unsold flowers

In a joint action to encourage our aid workers, we will start a distribution campaign tomorrow. In cooperation with the Association of Wholesalers in Floricultural Products (VGB) and Bloemenbureau Holland, employees of Royal FloraHolland flower auction at hospitals and nursing homes in the Aalsmeer and Naaldwijk region are handing out flowers to thank care staff for their efforts in the time of the coronavirus.   
Read more >> 

 

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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