NL: 'Plants sell better than flowers'

The Dutch VGB (Association of Wholesalers in Horticultural Products) export figures based on Floridata information show an increase in plant export turnover from the Netherlands of 5% to €1.9 billion, compared to a flower export turnover of 2% to €3 billion. Wholesalers are playing into technology and market developments by investing in doing business online and in partnerships. On the whole, they expect further, albeit modest growth.

Dutch wholesalers achieved an increase in flower and plant export value in every month of this year except January. Since spring the rise fluctuated around 3%. Through October, the number is 3.1%, translating into a sales value of €4.9 billion.

Last year the export value of pot and bedding plants decreased by 2% to €2.1 billion. This year there’s an increase through October of 4.5% to €1.9 billion. The recovery of the plant market set in a year ago and now seems to be lessening. Last September, the export turnover dropped. Growth was just 1% in October to €149 million. "We are seeing a trend in many countries of increasing popularity of higher quality and therefore more expensive plants," says Wijnand Star of wholesaler H. Star Bloemengroothandel. Jan Edelman of Edelcactus feels that plant sales are benefiting from more attention in consumer media and promotional efforts.

In the flower segment respectively 8.7%, 2.8% and 3.6% more export turnover was achieved in the last three months, with a cumulative growth of 2.2% on €3 billion. "The number of sales is about the same; the value increase is due to a higher purchase value," says Henny Star, from the same wholesaler. The increase was 5.6% through October last year. Flowers performed better than plants on an annual basis then. Up to now the reverse is the case this year.

With an increase of almost 10% in October, the export turnover to wholesale customer Germany drew the cumulative growth to 6.4%, to over €1.4 billion. That brings this increase to 60% of the overall growth this year. Its market share rose by almost a full percentage point to 29.6%. Like Henny Star, Gerrit Groot of FleuraMetz attributes this to a higher purchase value, in relation to the flower segment in Germany. "Not in units. The other shift that we’re seeing is florists buying more online, in smaller numbers and more frequently. Thanks to digitization a wider range is visible and available to them, although this isn’t necessarily leading to a market increase at consumer level. It is changing the role of wholesalers."

Henny Star also sees new roles for players in the ornamentals chain. "Acquisitions and partnerships, also with respect to growers, where we’re seeing the same development, with increasingly larger parties." Wijnand Star adds that wholesalers are increasingly acquiring a mediating role. "This is partly due to the greater transparency."

The export value of flowers and plants from the Netherlands to Russia continues to decline due to the depreciation of the ruble. Currently there’s no expectation with regard to recovery. Mid-year, Russia dropped out of the top 10 export destinations. In this ranking the UK is the only country where the export value is declining. That trend break began this spring. By comparison, a record turnover of €925 million was achieved for the UK in 2015. The fall of the pound sterling after Brexit has reinforced the decline. In October exports dropped by 11% compared to last year. Through October the drop stands at 3%. Arco Duyvenvoorde of Van Duyvenvoorde Flowers & Plants: "Exports to Russia and England are now much more difficult." 

According to exporters, the effects of the recent US election outcome on the dollar and trade relations with the US are unpredictable. Like in England, there was a record export in cut flowers of 44% to €88 million to the US in 2015. Through October this year the growth in this segment is 13%. In a cut flowers Top 10 the US would rank eighth.

Percentage wise the export to Belgium shows the greatest increase compared to last year. The Belgians bought 11% more in value, to €215 million. In euros this is equivalent to the decline with regard to the UK. The flower and plant exports to Poland rose by 8% to €165 million. Tino Hottinga of starting material supplier Vinkaplant notes increased interest in Russia and Poland. Vinkaplant imports tropical cuttings worldwide and exports to many countries. Edelcactus has a similar core function, but in the segment of cacti and succulents. "This variation in ornamental related activity is indicative of the strong international position of Dutch flower and plant wholesale, making collecting and sharing knowledge increasingly crucial," according to Robert Roodenburg of the VGB.

Source: VGB