The weather recently took a turn which caused summer temperatures. Many (outdoor) flowers were in bloom and ready to be harvested. Normally, the flowers supplied in May only slowly start to bloom at the beginning of June. This resulted in an increase in supply and a decline in auction prices. Roses, lilies, carnations, Lisianthus; virtually everywhere you saw a declining price, and don’t forget that the past few months had been very well price-wise. Looking back, we now know that we have entered in weaker period for both flowers and plants. The first vacations are ahead of us, and this in term affects the price on the market.
So, it is resetting and getting used to the market(prices) again. Not only for suppliers and buyers but also the auctioneers. Unfortunately, you never get used to it… In the next blog, more about plants!
Despite the flower holidays being behind us, the (foreign) purchasing power remained steady. A shipment of roses divided among 12 buyers in a matter of seconds remained business as usual. The properties of the auction clock remained and remained working accordingly; super-fast, super effective, current spot market price, a wide and diverse supply, and purchasing power. No other sales system or organization can compete!
Expectations
For the time being, the summer weather will remain, causing the supply to increase even more due to the (late) growing season of the outdoor flowers. The first vacations are starting among buyers as well. What you will notice then is a slight decrease in sales; the consumer will not buy as many flowers, the regular buyer knows exactly what and how much they can buy, his ‘replacement’ is generally a bit more careful. This all leads to the prices being pressured a bit more. I expect we leave the good prices behind us and switch over to the summer prices before 2020. Or, will this period be as good as that of summer last year?
In conclusion
During the last period, it appeared the consumers have yet again embraced flowers and plants. I hope this change is structural in nature and that our sector has been ‘rediscovered’ (in a sustainable way).
When large-scale events are possible again, the maximum capacity in hotels increases, weddings can have as many people as they want to attend, et cetera. It will have a positive effect on the flowers used at events!
Erik Wassenaar, Auctioneer Flowers (including Roses), Royal FloraHolland
Connect to Grow
You are welcome to supply or sell on the auction clock. Contact customer service at Royal FloraHolland: 088 789 89 89 and ask for an account manager or an auctioneer.