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Royal FloraHolland:

Positive turnover development continues

Period 11 (from 10 October to 6 November 2016) also concluded with a positive turnover result. Since the summer, the turnover at Royal FloraHolland has been growing.

The rise in turnover in period 11 was 7%, which is equivalent to € 313 million. This is the highest turnover ever in period 11 in the history of Royal FloraHolland. While that is remarkable, the price-setting is even more striking. The average price of all products together was 41.3 cent, the highest average price realised this year in one period. It's higher than Valentine's Day or Mother's Day.

This is due on the one hand to the relationship between houseplants, with a high average price, and cut flowers, with an average price at a lower level. This in turn is due to the price-setting of the cut flowers, especially roses, gerbera and hydrangea, which underwent a huge increase in their average price.

Turnover x €1 million

In cumulative terms, turnover grew 5%. By the end of the year, this will decline by at least 1%, so the growth in turnover in 2016 will ultimately be between 3% and 4%.

Increased share of direct trade
As a relative scarcity has developed in the market, through a slight decrease in supply and slight increase in demand on the European market, the share of direct trade is also increasing.

For cut flowers, the share of direct trade rose by 2 percentage points to 30.9%. For the top 5 products, it was particularly the sale of spray chrysanthemums that increased via direct trade (5 percentage points). In the top 20, Zantedeschia showed the greatest rise with a doubling of sales in direct trade from 10% to 20%.

Houseplants also showed an increase in direct trade sales of 2 percentage points to 78.6%. Most of the products were at a high level, and it is evident that products which traditionally lagged behind in direct trade, like azalea, are now catching up.

Among garden plants, the share of direct trade shot up by 6 percentage points to almost 60%. The seasonal products did especially well, like Helleborus, Skimmia and violets, which are being increasingly sold via direct trade.

Export increased by 1%
The export figures for September from Floridata are the latest export figures available. Export increased in September by almost 1% and thus matched the turnover development of Royal FloraHolland in September. Exports towards the UK dropped by 7%, while France consumed 4% fewer products. Germany showed average growth.

The positive results were noted in smaller countries like Belgium, Poland and Austria. Russia is falling further behind, and the decline in export to that country seems neverending. For cut flowers, the export value to the USA is now larger than that to Russia. In cumulative terms, the export value is 3% up on last year, so the growth in export and the growth in Royal FloraHolland are rather similar.

Cut flowers turnover rose 8%
There were 6% fewer items delivered, and the average price rose by 14%. One striking development was the huge price rise of Gerbera (45%). Furthermore, 10% fewer roses were delivered, and 45% more tulips were delivered. The average price of tulips dropped by 13%.

Houseplants turnover rose 5%
The number of items grew 2%, while the average price rose 3%. One striking aspect was the drop in supply of Phalaenopsis (-8%) and cyclamen (-9%). The supply of most other products increased. Furthermore, the price of Anthurium, Kalanchoë and Hippeastrum improved by 10%. It seems that these products are becoming increasingly popular with consumers.

Garden plants turnover grew 15%
The supply increased by 4% and the average price by 10%. The increased supply was primarily due to products like Helleborus, Picea and Gaultheria. Higher prices were realised by products like Skimmia, Picea and Buxus.

Source: Royal FloraHolland
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