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NL: Drop in turnover due to low price for cut flowers

In the period from June 19 through July 15, the turnover was down 4% compared with last year. The biggest cause was a lower price for cut flowers.

The average price for cut flowers of 21 cents is still above the long-term average. The price last year lay around 24 cents. This year the average price is at a more normal level. An increased supply of houseplants and a higher price for outdoor plants ensured that the 13% drop in turnover for cut flowers was partially compensated.

In cumulative terms, the growth in turnover is 1%.

Direct trade
The demand for buying products directly from the growers continues to increase. For cut flowers the share of direct flows increased by 3.8%-points to 34.5%. Products that are sold in relatively large amounts through the supermarket channel are being bought more through the direct flows. The typical florist products are still bought mostly at the auction clock.

For houseplants, the share of the direct flows grew to almost 80%; it increased by 2.3%-points to 79.4%. For outdoor plants, the share of the direct flows grew by 4%-points to 67.3%.

Export value grew by 0.4%
The export figures from Floridata for June 2017 show a minimal growth of 0.4%. Pot plants increased by 2.5% while cut flowers decreased by 1%. In June these developments persisted. Exports to the UK are under pressure and dropped by 11%. Exports to Eastern Europe are growing strongly. Exports to other countries are fairly stable. Exports to France were disappointing, with a drop of almost 9%.

The growth figures for exports in 2017 and the growth figures for Royal FloraHolland show that the growth at Royal FloraHolland is lagging behind the growth in exports. More and more products are being exported that were not bought via Royal FloraHolland. This development started at the beginning of this year. The difference in growth between exports and at Royal FloraHolland hovers continuously around 5%.

Turnover of cut flowers decreased by 13%
The cut flower sales were under pressure in comparison with last year. The average price level dropped by almost 13%, while the supply remained the same. All products experienced less favourable price-setting. Lilies, peonies and sunflowers dropped over 25% in price. For products like Hortensia, the price decrease was limited to 3%.

Turnover of houseplants rose by 7%
For houseplants, the supply increased by around 5% and the average price increased by 1%. The turnover of houseplants grew by almost 7%. In particular, cacti and succulents are doing very well. The supply of these products rose on average by 33%. The average price level was also 20% higher.

Average price of perennial outdoor plants rose by 23%
For outdoor plants, the supply remained the same, but the average price rose by almost 13%. The perennial plants were responsible for this change. The supply of these plants increased by 20% while the average price rose by 23%.

Source: Royal FloraHolland
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