Dutch export of flowers and plants to Eastern European destinations is growing stronger than the average increase shows. This is apparent from the export statistics that Floridata generates for the sector. Until the end of July, the total increase is 6%. In turnover it is € 3.8 billion. The wide assortment, strong logistics and support of market developments in the purchasing countries are the pillars under the growth that Dutch exporters realize. "The increase remains above original forecasts," VGB (Association of Wholesalers in Horticultural Products) director Matthijs Mesken ascertains.
In July, the export turnover of flowers and plants from the Netherlands increased by 1% throughout the assortment due to a higher purchasing value. The differences between sales markets are substantial. A major riser in July, as shown by the underlying Floridata statistics, was the Czech Republic with an increase of 39%. In the previous month the United Kingdom recorded a 15% decrease. In the flower and plant trade, July is, with a share of 6% on a yearly basis, the month with the lowest turnover. March and May are traditionally the busiest months with a 10-11% share. "Almost twice as much and as busy. That shows the flexibility of the wholesale sector," according to the VGB.
Eastern Europe growth
With increases in Poland (+ 27% to € 159 million), Russia (+ 36% to € 101 million) and the Czech Republic (+ 22% to 66 million), these Eastern European destinations contribute significantly to the growth. "The resilience of people of Eastern European countries is high," says Marco Vermeulen, director of Wholesale & Sourcing Flowers of Dutch Flower Group, explaining among others, the reversal in Russia. The shrinkage that started in 2014, when the export counter at the end of July was up to € 150 million, has this year been reversed into growth. "Although in a cheaper priced range, but flowers remain a fixed part of the consumption pattern in Russia. And the strong companies prove their right of existence," he adds. Egbert Hunink of Gasa Holland also attributes growth in Eastern Europe to the support that exporters provide in developing these markets. "With the upgrade of the assortment, customization in concept development for the different parties and logistics refinement, we can continue the growth," he expects.
Exchange rate influences
The more stable conversion rate of the Russian ruble is an important factor for the recovery of that market. The weaker British pound and the US dollar cause a reverse effect. Exports to the United Kingdom are 7% lower this year at € 529 million. Until the end of May, the Americans purchased 7% more Dutch flowers in sales value. "Politically, there is still some more uncertainty in America and therefore trade is more cautious," is an observation by Paul Hoogenboom, director of Holex. "Other flight destinations are generally positive, even though the summer months are always less. Because, as the Netherlands, we can continue customized delivery with adjusted quantities, in particular in these months, that is why we have a specific trading position. It’s important that the assortment remains wide," he mentions. "Thanks to the flexibility and the long-standing strong commitment of trading companies to the spread of import and export, wholesale can continue to grow. And with innovative information technology we are responding to market opportunities," adds Mesken the vision of the VGB.
Source: VGB / Floridata
