Netherlands: Income of cut-flower growers declining; income of pot-plant growers rising

Due to major differences in price development of the products, the disparities in agricultural and horticultural incomes are large. For instance, the average income per no salaried annual work unit for a sow farm is -75.000 euro and for average growers of vegetables under glass is +274.000 euro. The growers of vegetables under glass have the strongest income growth, bringing the total to a historical level. This is apparent from the annual income forecast of LEI Wageningen UR, partly on the basis of CBS-figures, earlier this week published on agrimatie.nl.

Picture: Wageningen UR

The incomes are highly dependent on product sales. The selling prices fluctuate more than in the past and especially at large companies, it's affecting the incomes. Beside marketing strategies and selling prices also the operating conditions, craftsmanship, managerial skills and difference in business strategy determine the income.

Average income of growers of vegetables under glass is 274.000 euro
Production problems in other countries and the resulting market conditions have ensured that the selling prices of vegetables under glass have increased sharply in 2015. In combination with lower expenses for energy the average income increased for the sector to unparalleled levels.

A mixed picture in the ornamental sector
The ornamentals sector (cut-flowers and pot- and flower bed plants) shows a mixed income. The income for cut-flower growers are slightly declining, but still remain at a good level for the sector. Pot- and flower bed plant growers received higher prices for their products and in combination with the increase of the farm size the income raised by 25.000 euro. Also within this sector the differences are huge. The prices for the most important product phalaenopsis were falling.

High yield tulip ensure record income
In the open-field horticulture both the bulb as well as the open-field vegetable growers received the highest income of the century. This is due to the higher returns of tulips and increased vegetable prices as a consequence of the drought situation elsewhere in Europe. The income of fruit producers is recovering due to higher selling prices for apples and pears in 2015. Tree nurseries see their income declining due to the declining export in particular to Germany and the associated moderate pricing.