NL: Prices cut flowers down, houseplants and bedding plants up
A period of more than four weeks between holidays always reflects a drop in demand. This of course puts pressure on the price. Period 4 (each period lasts four weeks) of this year conformed to this pattern. With the same number of auction days as this time last year, the supply of cut flowers declined by 3.5%. The average price dropped by 17%, and some products even saw a decrease of 30% or more. Royal FloraHolland points out that the average prices of cut flowers in period 4 of last year were extremely high.
Plants
Among houseplants a reverse trend is evident. There was no dip in the price. Given the cold spring, there was even an increased demand for houseplants. The supply was 12% lower than last year, and the average price rose by 14%.
Garden plants showed large differences between sales in the direct flows and the clock sales. The same cold weather ensured that the price-setting at the clock was moderate to poor for many bedding plants, while the direct flow trade continued to be reasonably healthy. The supply was 5% higher than last year, and the average price rose by 19%.
Total
In total, the sales in period 4 declined by almost 8%. In cumulative terms, we are looking at a revenue increase of 4%. Taking into account all of the corrections for more and fewer auction days at the beginning of the year, Royal FloraHolland comes out at the zero-line.
Revenue development per period
Direct flows
Despite the moderate price-setting due to the declining demand for cut flowers, the proportion of the revenue from direct flows increased by 1.8 percentage points to 38%. Here, too, there are major differences. Tulips and Gerbera together form the main component with around 60%. Lilies are about 50%, and roses and spray chrysanthemums about 35%. A product like Ranunculus trailed a long way behind; its proportion was only 8%.
Among houseplants, the proportion of the revenue from direct flows increased by 2.7 percentage points to 75.6%. A product like Phalaenopsis was above average at 80%, but most of the products were about average (75%). Hydrangea only managed 68%.
Among garden plants, the proportion of the revenue from direct flows also increased: by 2.7 percentage points to 71%, which is rather high for garden plants. Especially the bedding plants like Pelargonium and Osteospermum are sold in large quantities via the direct flows. Boxwood trailed behind with a share of 50%.
Export
The export figures for March are the latest ones available. In March the export of flowers and plants remained the same as during March of last year, while the plant export declined by 2% and the flower export rose by 1%. In cumulative terms, the export rose over the first 3 months by 0.6%.
The UK slowed down after the growth seen in the first 2 months, a decline of 9% was seen in the export to the UK. The export to Germany rose by 5%, with an increase of 10% for flowers and a drop of 3% for plants. In addition, Poland is becoming increasingly important as a buyer of Dutch flowers and plants. In March, the export to Poland grew by 18%. This compensated well for the drop in value of the export to Russia of 38%.
Total revenue: growth of RFH revenue vs NL export
If we compare the growth of the revenue at Royal FloraHolland and for export, then the growth at Royal FloraHolland in March trailed a long way behind the export developments.
Product groups
The cut flowers revenue declined by 20%. For tulips and spray chrysanthemums, the drop was around 35%. This decline in revenue could be solely attributed to the drop in price, which was 31% for tulips and 38% for spray chrysanthemums.
Roses did relatively well, with a price drop of 5% for 2% less supply. Only Freesia, Ranunculus and Cymbidium realised a higher average price than in period 4 of last year.
Among houseplants, the revenue declined by 0.3%. The supply dropped by 13%, the average price rose by 14% to €1.84, which is the highest average ever recorded in period 4. Pot roses and Ficus captured the greatest price increase, while Campanula and Pelargonium grandiflorum realised an average price that was just 1% less.
The garden plants realised a 24% growth in revenue. The supply increased by 5%, the average price rose by 19%. The price movements fluctuated widely, but the bedding plants in particular ensured a rise in the average price.
Source: Royal FloraHolland
