Valentine's Day assures revenue growth for Royal FloraHolland
In the run up to Valentine's Day, Royal FloraHolland realised in week 6 the highest weekly turnover ever achieved at the auction. In the first and last weeks of the period, the revenue development was just average. And because Valentine's Day is more of a flower event than a plant event, the greatest upward trend was evident in the turnover of flowers. The basis was laid by a higher price level. In cumulative terms, the revenue growth for 2017 is now 0.7%.
Share of direct trade remained 36%
The share of cut flowers remained the same in this period. There were only slight changes at the product level. The share of tulips declined, while products like freesia and gerbera improved slightly. But on balance the share of direct trade remained at 36%.
For houseplants and garden plants, the share rose slightly. Houseplants increased by 1.2%-point to a total share of 79%. The share of garden plants increased by 1.7%-point to 72%. Among houseplants the bulb-in-a-pot products sold relatively well at the auction clock. Likewise, flowering products did well among the garden plants.
Export value rose 11%
The export figures for January 2017 (source: Floridata) displayed a strong growth of 11%. The export of cut flowers grew a bit more (+14%) than that of plants (+8%). The drop in exports to the UK was 5%, rather than 10% as in the second half of 2016. One striking element is the growth in export to Russia. After years of falling figures of up to 30% on a monthly basis, the export to Russia increased by 38%, for both flowers and houseplants. The question is whether this is a one-off occurrence or the first sign of recovery.
Royal FloraHolland realised a growth in turnover of 11% in January. Thus, the auction's revenue growth nicely reflects the growth in exports.
Price level of cut flowers rose 12%
Among cut flowers the revenue increased by 4%. The supply declined by 6% while the average price level rose by almost 12%. The influence of Valentine's Days is clearly visible here. The supply of the top four products decreased: roses because of the colder weather in Africa, tulips because there were fewer suppliers, and chrysanthemums and lilies because the English Mother's Day is 3 weeks later. Gerbera experienced an increase in supply, while the supply of lisianthus grew by almost 10%. Almost all products were sold for a higher average price. Only freesia lagged behind, with a slight decline.
Turnover of houseplants rose 2%
Among houseplants the number of items declined by 1% and the average price rose by 3%. There are hardly any differences compared with last year. The supply of for example kalanchoe and anthurium grew slightly. Somewhat smaller quantities of phalaenopsis and pot roses were supplied. The price-setting reflected a similar trend; one product realised growth, another product declined.
Garden plant revenue decreased 1%
Among garden plants the revenue decreased by 1%. The supply was 3% lower, but the average price was 2% higher. The garden plant season has not yet begun. It is primarily products like camellia and citrus that are selling well in this period.
Source: Royal FloraHolland