We inform you about the impact of the corona virus on the Dutch and international horticulture market.
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Market update
Tuesday 17 March 2020

Dear sir/madam,

Royal FloraHolland keeps a close eye on developments surrounding the coronavirus in order to keep our (member) suppliers, buyers, employees and visitors to our locations safe and healthy. In this market update we will inform you about the impact of the corona virus on the Dutch and international floriculture market. 

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

 

Emergency measure: Stricter supply regulation

 
Royal FloraHolland announced an emergency measure yesterday because of the high percentages destroyed product (product which is not sold – but destroyed) and poor prices on the clocks in recent days. Pricing today was better than yesterday and percentages of destroyed product are generally considerably lower. However, this percentage still needs to be lowered further. That is why Royal FloraHolland is tightening up supply regulation.  This means: 

 

  • Supply of cut flowers: a maximum of 30% of the supplied volume of last week's auction day.
  • Houseplant supply: a maximum of 30% of the supplied volume on the previous week's auction day.
  • Supply of garden plants: maximum 75% of the supplied volume on the auction day of the previous week.

Read the news here  »

 

Market developments Tuesday 17 March 2020

Today's total turnover (clock and direct) amounts to 12.30 million euros. A decrease of 48.5% compared to last year. Today's clock turnover was 1.27 million euros. In total, only 12.2 million items were supplied for the clock, partly due to supply regulation. Of that, 20.3% went was not sold but destroyed (20.4% for cut flowers, 27.8% for houseplants and 6.8% for garden plants). 
As of today, Royal FloraHolland has tightened the supply regulation on the clock. The average price of flowers rose from 7.4 yesterday to 9.5 eurocents today. From houseplants from 63.1 to 65.2 and from garden plants from 36 to 44.6 euro cents and the throughput percentages are generally considerably lower than yesterday. These were on average 20% and yesterday on average 46.4%. In Aalsmeer, the percentage destroyed was highest with almost 30% for flowers and houseplants. 

Quantities auctioned per auction location
 

At the Eelde location, the effects of the crisis have so far been somewhat less pronounced. The turnaround rate remained limited to 2%. Price formation was on average 5 eurocents per unit higher than on Monday 16 March.

 

Client Contact Center 
The Client Contact Center has been approached many times in recent days with questions about the tighter supply regulation. The Contact Center is available to answer all your questions about this and other matters. The Contact Center can be reached at the following times:

Monday to Thursday: 05:30 - 17:00 hours
Friday: 05:30 a.m. - 4 p.m. 
Saturday/Sunday: 09:00 - 17:00 (Mail and WhatsApp)

Telephone: +31 (0)88-789 89 89
WhatsApp: +31 (0)88-789 89 89
Email: klantenservice@royalfloraholland.com
 

 

105 new Remote Buying connections 
The past few days we have established 105 new Remote Buying connections. This allows us to comply with the rule that no more than 100 people are allowed to work in any of the mine-rooms. Every day, we make sure that there are less than 100 people in an assembly hall. 
In addition to placing Remote Buying software on the laptop, we guide buyers in the use of Remote Buying. Larger exporters also take measures in case dealing rooms have to close. Remote Buying laptops are installed so that they too can continue to purchase.  
 

 

Represention of interests: call for suppport measures 
Royal FloraHolland does its utmost to support growers and buyers in these times. We are working very hard for a broad package of support measures for the acute financial problems in the Dutch floriculture sector, and wherever we can, we also look after the interests of our international members. 
Our local offices in Ethiopia and Kenya work closely with the branch organisations EPHEA (Ethiopia) and KFC (Kenya) and discuss emergency measures with the governments. They focus on easing the burden through reduced taxation, lower labour costs and ensuring the passage of transport options (by land and air).
In Germany there is contact with the branch organisations ZVG and BGI. They are also trying to limit the effects on the business operations of growers and trading companies, to keep the outlets open to consumers and to keep the supply of floriculture products possible. We also conduct this lobby in other countries. 
In the Netherlands, we are currently waiting for the government to decide on additional emergency measures to support the economy.  
 

 

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 horticultural updates for:


Kenya:
Flower sector (especially Dutch companies in Kenya) hit hard. Exports are estimated to have decreased by 80%. Production is minimized and the rest is turned around on the spot (transport costs are not even risked).  

Germany
Farms with seasonal workers from abroad face problems due to the closure of the German border (only border to NL and BE are currently open). Goods and work-related travellers are allowed to travel freely. Minister Klockner has promised support. https://www.topagrar.com/management-und-politik/news/corona-gastronomiebeschaeftigte-fuer-die-landwirtschaft-11998286.html

Spain:
Spain is going to introduce border controls on land borders. From Tuesday, March 17, 00 hours CET, there will be passport controls at Spanish land border crossings. Apart from these checks, there are for the time being no restrictions on the logistic routes to and from Spain. Goods and in particular food may enter and leave the country. 

Russia
Moscow is in danger of lockdown. Airport possibly closed from 18 March to 1 May. The annual international greenhouse horticulture event in Kazakhstan (Almaty) (22-24 April) with a large number of Dutch exhibitors has been postponed and moved to 7-9 October 2020.  Kazakhstan has taken strict measures for foreign transports and means of transport entering the country, including changing trucks and drivers. 

United Kingdom: 
Florists and garden centres are on the one hand concerned that people only buy essential products, on the other hand they perceive opportunities to take advantage of the extra time spent in the garden through online sales. Florists also appeared to have concerns about a possible Dutch emergency law that would prevent transport/export of flowers. LAN-London, after consultation with LNV and the VGB, was able to convince the British Florist Association that this was not the case.

Japan:
We've made a phone call to the most important importers. As such, trade is still going on, and there are no blockades at customs or ports. However, the importers did express concerns about the logistics in other countries, especially if it runs via China. Because many events have been cancelled, demand for fresh (flowers), high value products (e.g. veal) from the Netherlands is declining. 

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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