'Dutch export growth likely to continue'

With an increase of almost 5%, the Dutch exporters of flowers and plants have narrowly exceeded the record limit of € 6 billion in 2017. This year they expect another increase, the VGB and Floridata report. "Indeed more moderate, because the growth in 2017 was decreasing. But the outlook is permanently positive," according to the floricultural organizations. Striking are the extra growth of sales in Eastern European destinations and the stronger spread across more countries worldwide. Digitization and sustainability are key themes in 2018.

In 2017, December was the only month in which the export turnover in flowers (-1%) and plants (-0.5%) shrank compared to 2016. This caused the cumulative growth to fall below 5%, but the total export turnover jumped just over the limit of € 6 billion. "Records are not a goal, but substantiate the growth perspective that Dutch wholesalers in flowers and plants have," says director Matthijs Mesken of the VGB. "Trends are continuing", Wesley van den Berg of Floridata adds. "Especially the strengthened growth of flower and plant sales in Eastern Europe." He refers to the December export to Poland and Russia, two countries in the top-10 that scored a strong increase in the previous month.

The disappointing export value in December is attributed to fewer trading days than in 2016. And especially to the bad weather conditions with frost and snowfall, which decreased the demand for flowers and plants.

The past quarter was, since the first quarter of 2014, the fifteenth consecutive quarter in which growth was achieved. But with an increase of almost 2% compared to 2016, also the quarter with the lowest increase. The years 2000 (+ 10% to € 2.9 billion), 2002 (+ 6% to € 3 billion) and 2010 (+ 5.4% to 5.1 billion) showed higher growth than last year (+4.6% to € 6 billion). Since the introduction of the euro in 2002, flower and plant exports have more than doubled in value. At that time also the starting material was included with which growers abroad cultivate consumer-ready flowers and plants. "We would like to include this again in the statistics to give an even better picture of the international developments in flower and plant trade", says Van den Berg.

In view of the declining sales growth during 2017, the VGB and Floridata expect a tempered increase in 2018. Managing Director Peter de Raadt from Bloom, one of the companies of the Dutch Flower Group, is positive about 2018. "Supermarkets can again sell more flowers because the economy is strengthening in the sales areas in which we operate", he substantiates his expectations. Friso Baatenburg de Jong, Commercial Director at P. van Dam confirms this optimism. "Nearby markets are not yet saturated. And from more distant markets we notice a growing interest in flowers and plants."

The top-10 customers from 2013 onwards counted for an average of more than 82% of the export turnover, but in 2017 for only 80%. This indicates a larger spread of exports over more than 120 countries, in which flowers and plants from the Netherlands are traded. "Growth to other countries was calculated at 12%, much higher than the average," Van den Berg notes. Mesken: "Spreading strengthens the Dutch position and at the same time requires more efforts from exporters. Currency risks will also increase."

"We are ready with solutions in the field of ICT, system links and e-commerce to unburden our customers ever more," says Baatenburg de Jong. "In the flower and plant trade, it is not just about price, quality, assortment and service. Our customers want ICT solutions and that is why we have invested in expansion, both in logistics and in people. This is why 2018 promises to be also a great year."

Particularly in the supermarket segment, which Bloom supplies with a total package of flowers from Africa and supplemented from the Netherlands, De Raadt points to the increasing importance of traceability and certification. "Sustainability and the demands and wishes related to that theme, are crucial in the coming period." He calls the availability of flowers, especially from Africa, a point of concern. "Weather conditions are still very determinative and you cannot hedge against that", he articulates the dynamics of the wholesale trade in fresh products such as flowers and plants.