In this article you will find an update from the Dutch 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.
The Netherlands
Horticulture in the Netherlands is going to reassess its future plans on the impact of the corona crisis on the sector. A long-term study will be carried out in the coming months. "Certainly in the current period, it is impossible to predict what the horticultural sector in the Netherlands will look like in 10 years' time. However, it can be estimated and anticipated", according to Taskforce Scenarios of the Horticultural Crisis Team. (Source: The Floristry, 30-04-2020)
Senate participates in #FlowerBoostChallenge; Jan Anthonie Bruijn, chairman of the Senate, visited André Lankhaar's Kalanchoe Nursery in Bleiswijk on Tuesday 28 April. He did this as part of the #FlowerBoostChallenge. The fifty Kalanchoe arrangements purchased in this challenge will be given by the chairman to the Gulden Huis nursing and rehabilitation centre in The Hague. #FlowerBoostChallenge is an initiative of companies, organisations and private individuals to give floriculture in the Netherlands a helping hand during the corona crisis. (Source: The Floristry, 29-04-2020)
Large losses by propagators only at a later stage; propagators of ornamental plants expect that many large losses will only become really clear after the current emergency fund period (March, April and May), according to Niels Louwaars, chairman of Plantum. "Of course suppliers notice it very well when the demand for the end product falls away. In addition, some members are severely affected by lockdowns in other countries". If there is no follow-up support, Louwaars expects several ornamental plant breeders to fish behind the net. "The sector is very diverse. There will certainly be companies that have to make a claim to the emergency fund. For many, however, the entrepreneurial risk of 30% will be quite a challenge". The Plantum Chairman is all the happier that VNO-NCW and MKB-Nederland have already raised the need for follow-up support with the government. (Source De Bloemisterij 28-04-2020)
Trendz Autumn 2020 has been moved to September; the trade show Trendz Autumn which was planned on 23, 24 and 25 August in Evenementenhal Gorinchem will be moved to 20, 21 and 22 September. In the coming period, exhibition organiser Easyfairs will make a plan to make its events corona-proof from 1 September onwards. (Source: Flower & Leaf, 30-4-2020)
Garden centres see online turnover more than double; consumers are buying garden equipment online in droves. Garden centres see online turnover more than double compared to 2019, according to research by online marketing agency Garden Connect. There is a significant increase in the turnover of webshops of garden centres in Europe. In the Netherlands, garden centres are even recording an increase of 226%, a threefold increase in online turnover. (Source: FloraNews, 30-04-2020)
Germany
Germany still has to wait for broad easing; the German government and the Länder have announced a number of easing measures on Thursday. Chancellor Angela Merkel announced on Thursday that the federal states and the Federal Government will decide on 6 May. According to Merkel, the effects of the opening of shops last week on the spread of the virus must first be waited for before any further relaxation is made. (Source: ANP, 30-04-2020)
France
No sales of lily of the valley in front of French florists on May 1st (Labor Day); according to Europe 1, florists will not be able to sell lily of the valley on May 1st. On 30 April they announced that they had reached an agreement with Matignon to that effect. May 1st is the "fourth holiday" of the year for florists. The sale of lily of the valley to florists on May 1st is only possible "by delivery and on the basis of order", the government said Thursday. It was stressed that the rules that led to the ban on the activities of most companies will not be lifted, not even before May 1st. The FFAF (French federation of artisan florists) had initially indicated on April 30 that they had received permission from the Prime Minister to sell lily of the valley for the entrance of flower shops. Florists, like most other shops, have been closed to the public since 17 March. This later turned out to be a misunderstanding. Florists in France are allowed to reopen from May 11th; during the hearing of the Economic Affairs Committee of the National Assembly, Bruno Le Maire, Minister of Economy and Finance, clarified certain points about the reopening: they are doing everything they can to restart trade from May 11th and make sure that all shops open on May 11th. (Source: JAF-info, 01-05-2020)
Personnel at horticultural businesses are used to destroy stock and plant new plants; despite the reopening of the garden centres, sales remain limited. Florists and open markets remain closed. Between 15 March and 15 June, ¾ of the annual turnover is normally achieved, i.e. € 800 million. This means a loss of turnover of € 10 million per day. Half of the companies are in a vulnerable position due to insufficient financial reserves and cannot repay the guaranteed government loan. (Source: Agricultural Attaché Network of the Ministry of Agriculture, Nature and Food Quality, 30-04-2020)
France wants to ease the lockdown from May 11th, when the number of new infections per day is still below 3,000. Prime Minister Edouard Philippe announced this in parliament. The football competition will be stopped, and all events involving more than 5,000 people will be banned until September. On 7 May, the French government will monitor the number of corona infections in each department. In order to ease the lockdown on May 11th, the number of new corona cases per day must be under 3,000. If the indicators are not right, the lockdown will not be lifted,' says Prime Minister Philippe in parliament. Over the past two weeks, the number of new cases in France has been below that limit. The French departments are divided into 'red and green zones'. In the green zones, where the virus is almost under control, the loosening will take full effect, while in the red zone a more strict form will be applied. French shops, with the exception of cafes and restaurants, will be allowed to reopen from 11 May, confirmed Philippe in the French Parliament. The local prefects decide for themselves whether large shopping centres, covering an area of more than 40,000 square metres, will also be allowed to open. (Source: DeStandard.be, 28-04-2020)
96 Senators asked the Prime Minister of France to reopen nursery sales outlets; on the initiative of Senator du Morbihan Joël Labbé, 96 Senators of all political backgrounds signed a letter to the Prime Minister on 27 April urging him to intervene and provide a solution to the disastrous situation currently facing the horticultural sector, caused by the closure to the public of production and sales sites of retail producers. (Source: JAF-info, 28-04-2020)
UK
British DIY markets partly open, garden centres not yet; the largest British DIY chains with garden departments are partly reopening. But garden centres in the United Kingdom will have to remain physically closed for the time being. B&Q is opening more than half of all its 296 DIY stores in the United Kingdom. Clients must strictly follow rules on social distance. Homebase now has 70 of its 152 DIY stores open. So far, B&Q and Homebase have only been open online, even though the UK government had classified 'hardware' products as essential in corona time. For the time being, the government insists on closing non-essential retailers, including garden centres. Despite a growing lobby from the British floriculture sector, the Horticultural Trades Association and British TV gardeners such as Alan Titchmarch and Peter Seabrook to reopen garden centres. A third of all British growers would otherwise go bankrupt before the end of this year, said the HTA which sounded the alarm in London a month ago. Part of the British garden centres are still selling plants via the internet and click & collect. Chain Hillier has built up a webshop in a short period of time. (Source: trade magazine for floristry, 1-05-2020)
A new HTA industry report reveals that the Government's current proposed aid package is not working for the horticultural sector and that a third of UK growers claim not to be solvent at the end of June because of the effects of the coronavirus. HTA, which carried out the survey of British ornamental growers, calls on the government to act now and support growers before it is too late. Less than one in five growers has received assistance through the Government's Business Support measures, while only 1% have received financial support from the government's Coronavirus Business Interruption Loans (CBILS) scheme. Current support from the UK Government does not take into account the total loss of annual income for growers, which is largely seasonal from March to June. Meanwhile, more than three fifths of growers (62%) said that they were not eligible for farm support subsidies, while almost four in five (79%) growers are not entitled to any form of tariff reduction. It is also indicated that since in the Netherlands the government has announced a plan to help its industry while leaving garden centres open, Dutch growers will be perfectly positioned to supply the UK market if the UK sector collapses. (Source: HTA, 28-04-2020)
ALDI has announced measures to help suppliers as well as customers during the lockdown of the Corona virus. To help their partners, Aldi has agreed to purchase additional volumes of British beef to support farmers facing surplus produce due to restaurant and hospitality closures. In addition, Aldi is also helping horticultural suppliers by increasing orders for spring plants that would otherwise be disposed of due to the closure of their normal routes to the market. (Source: The sun.co.uk; 29-04-2020)
Belgium
AVBS and Boerenbond, together with Unizo, are asking for clarity about the reopening of a number of specific sales points for floriculture products. It is logical that these would open along with the planned reopening of shops on 11 May. AVBS and Boerenbond are asking the National Crisis Centre for clear communication about this in order to avoid discussions. In concrete terms, this includes the reopening of home sales of flowers and plants and the reopening of non-food vending machines. According to AVBS and Boerenbond, public markets and stalls selling flowers and plants could also open perfectly along with the reopening of shops on 11 May. These sales outlets are mainly located in the open air and on public land, so that good ventilation is always guaranteed on the one hand, and the rules on the other hand. (Source: AVBS. 30-04-2020)
Switzerland
Although at first it seemed permitted, supermarkets are not allowed to sell flowers and plants as of last Monday, the Federal Public Service has confirmed. Originally, the central government wanted retailers to be able to offer their full range again from 27 April and no longer have to block shelves with pots and pans. But this caused a protest from the industry. It would be illegal if large distributors were allowed to sell goods, but small shops with the same goods would remain closed until 11 May. And so the Federal Council once again prohibits retailers from selling anything but groceries and some daily necessities in their supermarkets, including flowers. The construction and garden centres of the wholesale trade are of course excluded. Flower shops are also open. Flowers that the major distributors had already bought (due to the wrong information from the Federal Government), could still be sold. (Source: Aargauer Zeitung, 28-04-2020)
Russia
Russia confirmed 7,099 new coronavirus infections on Thursday, bringing the official number of cases in the country to 106,498 and setting a new record for one day. Russia is now the eighth most affected country in terms of infections and has surpassed China and Iran this week. President Vladimir Putin extended the national 'non-working' month to 11 May, as Russia continued to see a sharp daily increase in new coronavirus infections in recent days. Moscow's lock-down has also been extended until May 11. Russia continues to build several additional emergency hospitals. (Source: The Moscow Times, 1-05-2020)
Flower growers in the Penza region are starting to recover; flower greenhouses in the Penza region are starting to do better after a number of failed operational weeks. Growing flowers is a non-stop cycle, which is why the greenhouses in Mokshana and Narovchata continue production. But at the beginning of the period of self-isolation, the demand for roses dropped dramatically, so the products had to be disposed of. "In the first week of closure we were in shock: trying to understand what to do now, what direction to take. In the first 5-6 days, the flowers we cut were simply thrown away. We cut 50-60 thousand flowers a day. The whole first production has been dumped. In the second week, however, we were pleasantly surprised when demand started to grow slowly. I would say, before Easter the demand was even greater than before the closure ", explains the production director, Mrs. Oksana Belyakova. Now, the flower greenhouses of the Penza region deliver roses and gerberas in all parts of the country, from the south to the Urals. Demand for local flowers may have increased due to restrictions on flower imports. (Source: Floraldaily, 30-04-2020)
Poland
Further steps in opening up the economy; from Monday, May 4, the shopping centres will be open again (with the exception of the food courts), as well as hotels and a number of cultural institutions. However, sanitary regulations must be observed, such as a maximum number of people per area and mandatory wearing of mouth masks. Previously it had been decided that from Monday 4 May outdoor sports facilities will also be open under sanitary restrictions. Every 2 weeks it will be announced what the next step will be in opening (Source: Agricultural Attaché Network of the Ministry of Agriculture, Nature and Food Quality, 30-04-2020).
Restrictions at the border have been extended until 13 May, when the border is closed to foreigners with the exception of a number of categories such as truck drivers. The mandatory 14-day quarantine for those who are allowed to enter Poland has already been extended indefinitely and remains in place, including for border workers. Further announcements are expected next week. International air traffic has been suspended until 9 May and international rail traffic indefinitely. (Source: Agricultural Attaché Network of the Ministry of LNV, 30-04-2020)
According to Bohdan Tustanivskyi of Profiflora, a consultancy firm for companies in the floriculture sector, there is a great lack of local flowers in Poland. "The flower market is very dependent on logistics. "The situation within Europe is not so bad, but all over the world it is. There are no passenger flights from Africa (30% of all flower deliveries) and the cargo drops by 30 - 40%. (Source: Floraldaily, 30-04-2020)
Kenya
Kenyan growers are not getting flowers out of the country; the available air freight capacity for Kenyan fresh produce is seriously lacking and air freight prices have risen to high levels. Of the 45 to 50 cargo planes that are normally used to fly Kenyan flowers around the world, about 12 are still in operation. Passenger planes, which transport flowers in the cabin, are all grounded because of the corona crisis. (Source: trade journal for floristry, 30 April 2020)
There are extra cargo flights this week but the rates are very high. Some growers now send more than 40% of their production, even if that means they have to pay extra for transport. (Source: International AM weekly update, 30-04-2020)
President Kenyatta has announced a 21-day extension of the curfew, which took effect on 26 April; the current ban on movements in and out of Nairobi, and the 'counties' of Mombassa, Kilifi and Kwale (and now Mandera) have also been extended by 21 days. (Source: PML Daily, 25-04-2020)
Nurseries in Kenya have embarked on a second phase of dismissal of staff; employers are now targeting those who still receive half of their salaries. They are sent home without a salary as the main import markets remain closed. (Source: Floral Daily, 28 April 2020)
KLM Boeing 777-300 passenger aircraft transported horticultural products to Amsterdam last week. Other transport news: mandatory corona tests on drivers/'crews' and disinfection of trucks cause delays at the Kenyan-Ugand border, reintroduction of cargo verification costs in the port of Mombasa increase operating costs. (Source: Corona Agrohandel LAN update, 28-04-2020)
Ethiopia
Update about Ethiopia Airlines: currently 2 cargo flights per day; the airline plans to organize 3 flights per day. EPHEA (Ethiopian Horticulture Producer Exporters Association) supports this. Freight costs to Europe are not increasing. (Source: International AM weekly update, 30-0-2020)
Source: Royal FloraHolland
