Flower and plant exports from the Netherlands remain at a level similar to the record year 2017, despite erratic market conditions, but the tension is greater. This is evident from the export statistics of Floridata up to and including May: just like last year, the € 3 billion level was reached after five months. Varying weather conditions and exchange rates had a big influence according to the VGB, the Association of Wholesale Traders in Ornamental Plant Products. The widening of exports seems to be slowing down and so far this year plants are doing better than flowers.
In the past month of May the total export value shrank by 1% to € 723 million, whereby the plant value increased by 5% and the flower value shrunk by 6%. "Last year in May, often the month with the highest export value, both product groups rose by almost 13% to the monthly record of € 733 million. That the export value did not reach this level this year is, at an average increase of 5% on an annual basis, therefore not surprising", according to Wesley van den Berg of Floridata. "May 2018 had one less trading day. That always has an effect. "
photo: Lionheart, a lily from the assortment of VWS Flowerbulbs
According to Matthijs Mesken, director of the VGB, in particular the weather conditions were initially bad and later this year again favorable for plant sales. "Spring was too cold in the beginning, followed by much better weather that was favorable for the sale of garden plants in particular." The export figures confirm that image: after three months the export gauge was negative, after five months on a plus of 3 %.
Plants are doing better
"After the first six weeks of the real spring peak, the garden plant market was significantly behind, and in the following six weeks, up to and including the French Mother's Day, it more than recovered by the end of May. But in terms of production capacity and logistics it was almost unmanageable and everyone had to pull out all the stops," Gert Woelderink of Javadoplant reflects. Van den Berg: "In the plant market the differences in results seem to be increasing. Orchids have a hard time in the market, other flowering plants remain popular and especially the green plants fit well in residential and interior trends, that's how we hear it from the market."
Eight out of ten declining countries of pot and garden plants from the Netherlands are at the end of May ahead of 2017, only the United Kingdom and Italy lag behind. In the case of flowers, the opposite is the case: only Poland and Russia record a growth until the end of May. "That is illustrative of the sales potential for the Dutch floriculture sector in Eastern Europe," says Mesken.
Growth spread seems to be stabilizing
Five years ago, the top 10 sales countries accounted for 83% of the export value, which gradually declined to 79% last year: the spread of exports to several countries increased. But until the end of May this year the top-10 again account for 79% of the sales value and countries outside this top-10 grow less. Traders attribute that to greater fluctuations in currencies. "In addition to weather conditions, these changes are of great influence", says Mesken. Euro-related export sales account for around two thirds of Dutch flower and plant exports.
"Orders from the Far East are bigger, but also irregular," is the experience of Marc Limmen of Barendsen Export. Floridata reports a relatively higher flower and plant export to the Middle and Far East and the dollar exchange rate plays an important role here. "With the very strong logistics and especially the wide assortment, the Netherlands plays a special role in the international flower trade. We must continue to be strongly committed to this broad product assortment," Limmen adds.
Exporters are counting on positive growth figures for the Netherlands at the close of the year 2018. Last year, up to and including May, an increase of almost 8% was achieved and the growth ultimately reached 5% of the turnover record of € 6 billion. This year only January noted a plus and the months of February to May recorded a small minus, mainly due to very unstable weather conditions in Northwest Europe.
Source:
VGB & Floridata