In this article you will find an update from the Ministry of Agriculture, Nature and Food Quality (LNV), who are involved in the crisis measures surrounding the Coronavirus and informs Royal FloraHolland about the impact of the virus on the export market.
Bulgaria
The flower and ornamental plant sector is losing a lot due to returns. More than 10,000 people work in the flower sector where the crisis damage is estimated at more than 20 million euros. There is a ban on open farmers' markets. Initiatives around online orders/direct delivery to home dolls on. Price ceiling supermarkets removed from the law.
Ethiopia
Compliance with measures to prevent the spread of Covid 19 to non-Ethiopians is strictly enforced. National borders are closed with the exception of food, supplies and medicines. Costs of primary necessities of life are rising enormously in various places. According to the government this is illegal. Hard action is being taken against (intermediate) traders. The larger food producing companies fear unrest and looting if there is a real scarcity, or if larger groups of day laborers who no longer have an income and no financial reserves start looting. The Dutch embassy is in close contact with almost all Dutch companies in Ethiopia. Long queues for petrol pumps. There are more and more rumors about a complete lockdown. In a lockdown the exporting horticulture sector is considered essential. This means that transport of employees and products remains possible. The government has promised to support exporting companies in liquidity problems. Details will be announced shortly.
For African growers it is difficult to decide on a daily basis what they can send. There are also flights out. Freight prices are rising sharply and it is becoming more difficult to allow trade to come to the Netherlands. 90% is thrown away. EPHEA (Ethiopian Association of Horticultural Producers Exporters) has submitted the following points to the government:
- injection of working capital;
- arrangement of unpaid leave for employees;
- rescheduling of loans;
- in case of dismissal to be paid by the government;
- discounting of freight rates;
- Benchmarking experience from other countries in mitigating the impact of the pandemic on the horticultural sector.
France
The French government is very committed to ensuring food supply and the free movement of goods within the EU. France is strongly in favour of green lanes at border crossings.
French supermarkets such as Carrefour and Leclerc are responding directly to the call of Minister Le Maire of the Economy and, now that French producers are losing their sales on open-air markets and to restaurants, are going to sell almost exclusively French-grown fruit and vegetables. The currently existing foreign products are still being sold, but foreign purchases are being stopped. Carrefour guarantees volume and purchase prices to fish wholesalers (market leader is Océalliance) to support the French fishery sector, which now lacks half of its sales to restaurants. Fresh produce departments in supermarkets are kept open as much as possible, which is not easy due to a lack of qualified staff (butchers) and customers staying away for fear of corona contamination. Carrefour keeps 70% of the fresh produce departments open; the policy at Intermarché is to "remain open to support the fishery and meat sector".
Japan
Japanese plant quarantine inspectors from Aalsmeer returned to Japan on 25 March. Consequences for Dutch exports of cut flowers: Pre-shipment inspection (PSI) cannot be carried out for the time being due to the absence of Japanese inspectors in the Netherlands. Export can continue. Japan will carry out a regular import inspection on cut flowers from the Netherlands upon arrival of the shipment.
Kenya
Last week (UK Mother's Day), one of the most important days for Kenyan flower exports, there were 50% fewer direct sales orders 70% less via RFH. Prices have fallen significantly due to reduced demand. As a result, all Kenyan companies have drastically reduced their export volumes to less than 70%, with a significant number of companies stopping their exports altogether. The consequences for the Kenyan flower industry are the following: downsizing and closure of companies, limited cargo space and disruptions in working capital for companies.
The Kenyan Flower Council asks the national government to consider the following:
- Quick VAT refund;
- Let freight forwarders continue their activities unhindered;
- Suspension of VAT on inputs and spare parts;
- Support in the management of the workforce and to facilitate discussions with trade unions and workers' organisations;
- Moratorium on the principal amount of instalment credits.
Mexico
As of 24 March, Mexico is officially in phase 2 of the pandemic, in which not all corona infections can be traced back to imported cases. The Mexican Ministry of Agriculture will ensure that agro-imports and exports (and efficient veterinary and phytosanitary controls) will continue to take place, and will stimulate the consumption of local seasonal products.
Ukraine
The government has extended quarantine until 24 April. The state of emergency has not been introduced, but the emergency has now been extended to the whole territory of Ukraine. Large companies are strongly opposed to preventive measures taken by the government, which they consider too strict in view of the epidemic and economic situation. The government has made changes to the list that defines companies that can provide trade services to end users. Added to this list are shops that trade in seeds and plant products, plant protection products and veterinary medicines and animal feed. Veterinary clinics are also open.
Poland
As part of the enhanced Corona measures, a mandatory 14-day quarantine will also apply as of 27 March for people living in border areas and working in the neighbouring country. Until now they have been exempted from quarantine. The competition authority has set up a team to monitor the prices of food and hygiene products both online and in shops. Consumers can also report price increases to the authority by mail and telephone. The Polish authority does not rule out intervention where improper use is made of contractual advantages over SMEs whose supply contracts may not be respected.
Romania
KLM flights suspended from 28 March / 3 May. Representatives of the agricultural sector request authorities: green corridors for rapid movement of seeds, fertilizers, pesticides, diesel fuel, spare parts, etc. Check waiting times Romanian borders.
Russia
Today, Rosselkhoznadzor (Russian NVWA) reported that Dutch exports of plant reproduction materials can temporarily take place to Russia under less strict procedures. The relaxed procedures will apply as long as the international situation around Corona continues and may be withdrawn by the Russian authorities at a later date. This concerns products, including seed potatoes, young avenue and fruit trees and cuttings, for which a preshipment inspection in the Netherlands was required before export to Russia was permitted. By issuing a phytosanitary certificate, the NVWA must guarantee that the plant material to be exported complies with the phytosanitary import requirements of the Russian Federation or Eurasian Economic Union (EAEU). For their part, Russian authorities will from now on carry out additional phytosanitary inspections on their own territory, i.e. at a (customs) point of customs clearance. During these import inspections, checks are carried out on the basis of quarantine organisms listed in the EAEU Decision of 30 November 2016.
Source: Royal FloraHolland