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Royal FloraHolland:

NL: Cut flower prices under pressure by warm weather and French holiday

Period 6 from 22 May up to 18 June 2017 at Royal FloraHolland ended with a decline in sales of 6%. The turnover was € 20 million less than a year ago.

The decline in sales is due to the disappointing sales to France, because Ascension Day fell just before Mother’s Day and many French people were away for the long weekend. Furthermore, the beautiful weather in almost all of Europe, was also a cause for a drop in sales. And possibly the trade chose for more certainty by purchasing a little less flowers and more plants. All in all, this resulted in a sales decline of 6%, fully attributable to the cut flowers.

Royal Floraholland Sales NL

Cumulatively, the turnover shows a growth of 1.6%. Because of the sales decline, it decreased by 1.3%. Incidentally, period 6 had 2 auction days less compared to last year, but the decline in turnover is not caused by the number of units but by the lower prices.

Direct trade
Overall, Royal FloraHolland sees the share of direct flows increase further. In recent periods, where changes in cut flowers were about tenths of percents, the share of the direct flow increased by 4.4% to 34.5%. Only Hydrangea sales in direct flows remains slightly behind, all other products show a decent growth. In houseplants, the share of direct flows increased by 2.4% to 77.9% and in the garden plants by 3.8% to 72.1%. Now the garden plants are almost at the same level of the houseplants.

Export value increases by 13%
Floridata's May exports figures show a growth of 13%. This is equally divided between flowers and plants. France shows a decline due to the disappointing Mother's Day. In the UK, the situation has only become more unclear and exports fell by 6%. The other countries show a strong growth like Germany + 20%, Poland + 25% and Russia + 30%.

Royal Floraholland Export NL

Looking at the growth figures of export over 2017 and the growth figures of Royal FloraHolland, then we see the growth at Royal FloraHolland lags behind in the growth of exports. It appears that more and more exported products have not been purchased through Royal FloraHolland.

Turnover of cut flowers decreases by 14%
Supply fell by more than 1% and the average price was 13% lower. In particular, the pricing of roses disappointed with a fall of 20%, both for products produced in the Netherlands and for products from abroad. Also chrysanthemum and lily fell more than 10% in price. In gerbera this was limited to 3%. Lisianthus was one of the few products that could maintain itself and the average price increased by 4%.

Turnover house plants increases by 1%
Supply decreased by almost 1% and the average price increased by 1.5%. Actually a very stable period for the houseplants with few real outliers up or down in pricing. Phalaenopsis supply was 11% lower and Zantedeschia went up by 22%.

Turnover garden plants increases by 14%
Supplies were 5% more plants, with an average price increase of 8%. After the bedding plant season it is now the season of flowering perennials as well as the vegetable plants which are doing well.

Source: Royal FloraHolland

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