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Collective minimum prices give way to individual minimum prices

The current collective minimum prices (aka VBN minimum prices) for the auction have existed for years and are therefore outdated. Within many FPCs, the collective minimum prices no longer have a function because the actual auction prices have been much higher for years. That is why Royal FloraHolland, in consultation with all FPCs, is phasing out the collective minimum price by 2024.

Individual minimum price
To give growers more control over their auction prices, the individual minimum price will become the new standard. Growers themselves specify an individual minimum price per lot. They therefore determine the lowest price they will still accept for their flowers and/or plants, taking into account their cost price and strategy. If the auction price falls below this individual minimum price, the product will go through. If no minimum price is entered from January 1, 2024, it will automatically be set at €0.01.

Pilot FPC Potorchidee started
From July 1, a pilot has started in cooperation with FPC Potorchidee, and from August 1, FPC Anjer will also start. In this pilot phase, growers can experience what setting an individual minimum price entails. The aim here is to learn from each other and with each other. The auctioneers can offer support if required.

Roll-out of individual minimum prices this autumn
The auction clock is an indispensable price instrument for many members of the cooperative. Therefore, a small pilot will be started to gain experience. Then, in the roll-out phase this autumn, all growers will be included in this different way of working step by step and per product group. That way, there will be room for individual follow-up at the end of the year, and everyone will be ready for the change on January 1, 2024.

Start with your own minimum price now?
As a grower, you don't have to wait until the roll-out phase at your specific FPC; you can start now. Check this page for all the information and how setting a minimum price works.

Source: Royal FloraHolland

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