3% higher than last year

NL: Unprecedented high export figures

Last week FloraHolland presented spectacularly high turnover figures. Yesterday Floridata’s and the VGB’s monthly figures added to the jubilant mood. The export of flowers and plants increased by 3% compared to last year, through September. And it is the tenth consecutive quarter in which the line is an upward one.

Data: Floridata

High prices
A higher purchase price in both flowers and plants is a driving factor behind the export turnover, which Dutch exporters apparently find difficult to pass on. This is also because the sales through retail channels are increasing and more fixed price agreements are made in this segment. 

Data: Floridata

Plants lagging behind
After a record increase of 17% in August, the turnover of the export value of pot and bedding plants lagged behind in September: 2.5% on €161 million. This was mainly due to the 15% drop in plant exports to top markets England and France. Cumulatively plants are ahead of cut flowers, with an increase of almost 5% to €1.7 billion. Thus, an increase was realized in September of almost 3% to €269 million and through September of 2% to €2.7 billion. The VGB analyzes Floridata’s export statistics on a monthly basis and publishes the top 10 customers. More in-depth analysis is available for members of the trade association. 

Only UK lags behind
Cumulatively only the UK is lagging behind in the top 10 buyers of flowers and plants from the Netherlands, through September by 2% on an export value of €699 million. After the record increase of 14% in 2015 the rise from the UK stopped early this year. After the first quarter the number two buyer stood at a modest plus of 1%. This turned into a drop of 1% in the second quarter, with no improvement since. Javadoplant director Evert Thielen: "The depreciation of the British pound obviously has repercussions. The demand for flowers and plants from the UK hasn’t really decreased." Percentage-wise Belgium and Denmark (+11%) were the largest gainers in the top 10 and Germany in euros, with €76 million.

France stable number 3
Through September the number 3 in the top 10 flower buyers shows a 3% increase, in turnover €570 million. In September France’s export turnover was 4% behind on €57 million. René Welborn from FleuraMetz: "In France we’re seeing the same cut flower levels as last year." He finds it difficult to assess the growth potential of the French market. Hamiplant’s general manager Leon Buskermolen says that they’re investing in growth by supporting garden centers among others with the appropriate range and creating an optimal supply chain. "Garden centers should especially distinguish themselves from large-scale retail with the right quality and more attention to the customer experience," he says. He describes the French wholesale segment as stable and hears positive things from the florist segment. Thielen is hearing similar things. "There’s still much ground to be gained in France in terms of internet sales, while we are already selling almost 100% through the internet in the UK," he says.

Positive mood
Thielen sees positive developments in almost all countries that Javadoplant exports to, with market developments in Spain and Portugal standing out. Floridata records a 13% increase for Spain to €61 million. Traders believe the rise may continue if the Netherlands emphasizes the classic advantages of its wide range, strong logistics and consistent quality with additional promotion. Export turnover to the US increased by the same percentage through September this year to €77 million. Since October 2014 the turnover decline to Russia has been a stable 27%. Export diversification has also been steady. Two years ago the 'other countries' accounted for 16.5% of the export turnover. Through September this year, this figure has been 18%, according to the VGB. Members of the Dutch trade association for the exporting and importing wholesale of flowers and plants represent €3.5 billion of the annual turnover in this sector.
Click here for the table, in euros, of the top 10 destinations' total export value of flowers and plants from the Netherlands through September 2016.

Source: Floridata & VGB

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