Royal FloraHolland: Same revenue despite one holiday less
International Women's Day and Mother's Day in the UK produced so much demand that the same level of revenue was realised this year as last year. And the revenue last year was already a record for period 3. In particular, the revenue around International Women's Day was high, reflecting a strong demand from Russia, while neighbouring countries are also beginning to celebrate International Women's Day more often with flowers.
Comparing revenue
Comparisons based on revenue between periods in successive years can be difficult due to the shifting of holidays and their associated sales peaks. Last year, International Women's Day, Mother's Day in the UK and Easter all fell in period 3. This year, Mother's Day in the UK and Easter are being celebrated 3 weeks later, which means the sales peak for Easter falls outside this period 3.
In cumulative terms, the revenue is equivalent to an increase of 0.5%, achieved by 6.5% lower supply and an average price lying 7% above last year's.
Direct trade
The share of direct trade increased. Among cut flowers, the proportion approached 40% with a growth of 2%-points. More and more cut flowers are being traded via direct channels, with the high-volume products like tulip, chrysanthemum and lily leading the way. Roses are trailing with a revenue of 34%, but that share is also increasing.
Among houseplants, the proportion grew by 2%-points to 78%. There is an evident trend of more being sold via direct channels for all products. Among garden plants the increase was just 1%-point to 68%. Here, too, more and more products are being sold via direct channels, especially now that the supply of garden plants is increasing.
Export value increased by 8.5%
The export figures for the month of February are the most recent ones available from Floridata. In total, the export of flowers and plants grew by 7%, with the export of cut flowers increasing by 9% and that of houseplants by 2%. In cumulative terms, the export through February increased by 8.5%. Among cut flowers, we see a strong recovery of the export to Russia. On the one hand, the rouble has risen in value, on the other the demand for International Women's Day increased, which led to a 38% rise in the export of cut flowers to Russia. This put Russia in 4th place again in the listing of cut flowers in period 3. Sales to the UK came under pressure in February and decreased by 13%. This is due to the sentiments associated with Brexit and because Mother's Day in the UK is celebrated 3 weeks later.
The growth in exports was considerably larger in February than the growth seen at Royal FloraHolland. Source: Floridata and Royal FloraHolland
Supply of cut flowers dropped by 6%
The sales of cut flowers declined in period 3 by 2%. The supply was 6% lower and the average price 7% higher than last year. The supply of almost the entire range was lower except for Lisianthus, Freesia and Alstroemeria, which were supplied in much greater quantities. Regarding price-setting, roses were ahead of the rest with an average price that was 15% higher than last year's.
Revenue of houseplants increased by 2%
Here, too, fewer items were supplied, 4%, and the average price was 6% higher than last year's. The supply of Anthurium increased by 22%, while that of pot narcissus decreased by the same percentage. The price-setting of each product group was more variable. In particular, the green plants and the spring seasonal products like Primula, Campanula and Hydrangea realised higher prices compared with last year.
Garden plant season starting earlier
Among garden plants the revenue increased by 10%. The supply declined by 2%, while the average price rose by 12%. The increase in revenue was caused by the lovely spring weather and by the increasing supply of heavier products, supplied in bigger pots, which automatically leads to a higher price. The most striking result among garden plants was the 16% increase in supply of Primula and an average price that was 18% higher than last year's.
Source: Royal FloraHolland