FloraHolland introduces promotional levy

FloraHolland has decided to introduce a promotional levy which would collect €6 million for the collective promotion of flowers and plants. FloraHolland took this decision after consulting the Customer Platform. The VGB [Association of Wholesalers in Flower Nursery Products] members' meeting was also positive about it.



Joint authority
The trade contribution of €6 million will be added to the €8 million growers' contribution already collected via FloraHolland for the promotion of flowers and plants. With this total sum of €14 million, Flower Council Holland can develop new campaigns to stimulate the sales of flowers and plants. Growers and dealers will jointly determine how the budget will be spent via Flower Council Holland.

Payment
FloraHolland will set a promotional levy based on the ruling that was last implemented in 2012 by the Horticultural Product Board. The rates have been adjusted to the new situation.

Starting points for the ruling
  • A trade contribution of €6 million.
  • The levy is a percentage of the purchased products (clock and direct flows) and is based on a decreasing percentage per bracket: From €0 to €11 million 0.19%; from €11 million to €50 million 0.12%; over €50 million 0.06%.
  • During the year a percentage of 0.19% will be deducted. At the end of the year the actual percentage will be calculated based on the realised sales in line with the set brackets.
  • Companies that form part of a financial/organisational unit (holding) are eligible for a consolidated final calculation.
  • To collect the promotional levy via the direct flows, the rate of the service levy will be raised by 0.19% from 1 January 2016.
  • The billing of the promotional levy for clock purchases will start with the introduction of the single clock invoice at the end of January / beginning of February 2016. An additional collection will be made to cover the period from the start of 2016.
  • The all-in price for clock purchases specified on the ECT will be modified at the end of January after the implementation of multi-transaction auctioning.

Source: FloraHolland


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