NL: Less supply, but higher prices on the clock this summer

During period 8 (from 18 July to 14 August 2016) the supply of flowers and rose plants decreased by 1%. However, the average price increased by 5% compared to period 8 last year.

Period 8 period falls in the middle of the summer months, although opinions are divided on the concept of summer. In the Netherlands and in our markets abroad at least, it was the holidays, so the demand was at a lower level. However, there we no longer periods with extreme temperatures so the demand was favorable for flowers and plants.

Royal FloraHolland's turnover was also favorable in these weeks, with a growth of 4%. The supply decreased by 1% and the average price increased by 5% compared to period 8 in 2015. This period already had a high average price. For example, the average price in recent weeks was higher than the average price level in March and April.

Cumulative sales growth currently stands at 4.3%. If we take the current positive sales development and the loss of marketing days at the end of the year into account, a total sales growth is expected of around 2.5%. Hereby both supply and price formation are responsible for half of the growth.

Despite the holiday season, flower and plant sales in direct trade increased further. In cut flowers the direct trade share rose again after a pause in period 7, with percentages from 2.1% to 33.5%. The overall picture does not really change. But there are more and more products that are rising towards 50%. Gerbera, lily and freesia already belong to this group. Seasonal products like Helianthus and Gladiolus can now be added. The products being sold less in direct trade are still the same, including Hydrangea and Zantedeschia. 

In indoor plants the direct trade share also increased with percentages from 2.1% to 78%. Here few products are left behind. The lower limit is set at about 66.6%. The upper limit is around 90%.

In garden plants the direct trade share increased with percentages from 5.6% to 63.3%. There is a greater spread here, with Calluna at the bottom with 14% of direct trade sales and Sempervivum at the top with 88%.

Until July, flower and plant export sales from the Netherlands increased by over 2% to €3.6 billion. With a plus of 4.3%, plants are doing better than cut flowers: +1.3%. There are great differences between countries. While the export of flowers and plants to several countries are very much in the plus (Germany, France and Italy) exports to other countries, that were significantly rising at the beginning of this year, are currently under pressure. These include the United Kingdom and Poland. Exports to the UK already seem to be suffering from Brexit. These dropped by 7% over the last two months. Export developments are based on Floridata export figures.

In cut flowers revenue increased by 1.4%. The supply decreased by 1.2%. The average price increased by 2.6%. Especially the supply of roses was under pressure. The supply from both the Netherlands and abroad decreased by about 6%. The other top five products scored averagely with their growth. Eustoma was one of the fastest growers with a supply increase of 10%.

In indoor plants the turnover increased by 10%. The supply increased by 1.5%, while the average price increased by 6.5%. A good result for the summer. With a growth rate of over 7% Phalaenopsis sat just above the average. Anthurium, on the zero line, was well below it.

Garden plant sales increased by 4%. Supply fell by almost 3%. The average price rose by almost 7%. Here also there were significant differences between the products. The average price of Hydrangea increased by 16%. The average price of Buxus dropped by 15%.