Rens Buchwaldt, financial director;

FloraHolland puts financing under the microscope

FloraHolland has plans to change the financing of the cooperative. Financial director Rens Buchwaldt: "With the FloraHolland 2020 strategy we have determined which direction we are taking. One of our objectives is to reduce costs by one third. Another objective is that we are going to invest in the World Flower Exchange program. We want to establish a financing structure that allows rapid and efficient movement alongside the implementation of FloraHolland 2020."



Cooperative financing

"In addition, we are of course also looking at funding, as befits a cooperative. An important and distinctive aspect of this is member financing. It connects, it gives the organization the ability to execute strategy and provides continuity. The structure of this financing must of course be clear and suit the changing business of its members."

Banks have other demands
Social developments also influence our funding. Rens: "Think of banks and their regulators. Nowadays they impose other - often more stringent - requirements on the parties to whom they lend money. Banks have to comply with various rules. That translates into their demands on parties like us."

Operating loss
"What certainly also plays a role in the adaptation of the financing of the cooperative is the reaction of members to the way the operating loss in 2013 was processed. It is a specific part of the member financing leading to many comments and concerns. Sufficient reason to reexamine that part in the funding of our cooperative. "

Proposal
"We have extensively scrutinized the impact of these four aspects. This led to a proposal to change the financing of the cooperative, to simplify and modernize. And that goes beyond paying out part of an annual accrual of the member loan when its going well financially, as has sometimes happened in the past."

In which direction do we look for the solution?
Rens: "We have three main targets. Member funding is needed and is part of our cooperative, but how can we change it and keep membership attractive? Can we simplify by incorporating the participation reserve and member loans into one system? And how do we keep the bank financing at a sensible level compared to member financing?"

Regional meetings
"Although we are simplifying, getting there is so complex that we will personally want to elaborate on the subject," says Rens. "A good reason to attend a meeting in your area this fall."


Click here for a list of dates of the regional meetings


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