More pressure on the EU market due to situation in Greece

The current situation in Greece causes tension on the floriculture market. Last Tuesday, by midnight, Greece had to pay 1.6 billion euros to the IMF, but they didn't. "Consequently, the plants and flower exporters are more cautious regarding their deliveries. They only want to work with cash or prepayments or they will even stop delivering to the country. As a consequence, more products will be on the European market, which causes lower prices," explains Herman De Boon, chairman of the VGB (Association of Wholesalers in Horticultural Products).

Export value to Greece cut in half
The situation in Greece, and therefore also in the export of floriculture products is not something that was created overnight. Due to the financial crisis, the exports from the Netherlands to Greece decreased over the last years. "If we compare it with the peak in 2007 the export value is cut in half: from 42 million euros to 20 million euros in 2013," says De Boon. In 2004, the export value of potted plants from the Netherlands to Greece was 10 million euros in 2004, 14 million in 2009 and just 7 millione euros in 2013. In the cut flower sector, one can see the same trend; from 25 million in 2009 to 27 million in 2009. In 2013 it decreased to 10 million euros.

Stabilization of the market
Even though there is high pressure on the market, due to the crisis, and also the unrest in Russia, the market is trying to stabilize. "The production volumes do not increase and the weak euro and strong dollar makes it more attractive for US companies to import products from the Euro zone. "Luckily the export numbers to the UK and France are growing."

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Herman De Boon

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