FloraHolland is planning to adjust the financing of the cooperative. What is FloraHolland proposing and what will the changes mean for you? Come to the regional meetings in November where they shall talk about all the new developments.
Financial director Rens Buchwaldt explained why we need a new form of financing: "With the FloraHolland 2020 strategy we have set our course. One of the objectives is reducing costs by one-third. Another objective is investing in the World Flower Exchange programme. We want to create a financing structure that will enable us to keep up as quickly and efficiently as possible with the implementation of FloraHolland 2020."
Cooperative financing
"Naturally, we shall be looking at the form of financing that suits a cooperative. One important, characteristic aspect of this is members' financing. It leads to binding, gives the organisation the capital to implement the strategy, and provides continuity. The financing structure must of course be clear and fit with the changing operational management of our members."
Banks are changing their requirements
Current social developments are also influencing our financing. "Consider the banks and their supervisors," continued Rens. "They currently set other - often stricter - requirements on parties to whom they are going to lend money. Banks must conform to all kinds of rules. That translates into the requirements that they impose on parties like us to whom they lend money."
Operating loss
"Another contributing factor to the adjustment of the financing of the cooperative is the reaction of members to the way in which the operating loss of 2013 was processed. It is a concrete part of the members' financing about which we have received many reactions and heard concerns expressed. This is sufficient reason to re-examine that part again in the financing of our cooperative."
Proposal
"We have examined in detail the impact of these four aspects. This has led to a proposal to adjust, simplify and modernise the financing of the cooperative. The revision will go further than just paying out a portion of the annual instalment of the members' loan when there is a financial windfall, as has happened in the past."
Where should we search for the solution?
"We are examining three main themes," explained Rens. "Members' financing is necessary and forms part of our cooperative, but how can we adjust it to keep the membership attractive? Can we simplify by converting the participation reserve and members' loan into one system? And how do we keep the bank financing at a sensible level compared to the members' financing?"
Come to the regional meetings
"While we are going to simplify, the step needed to get there is so complex that we want to explain the topic in person," said Rens. "So you have every reason to attend a regional meeting near you this autumn."
Source: www.floraholland.com