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Royal FloraHolland

Easter and spring weather produce rise in revenue of 11%

Period 4 (27 March to 23 April 2017) was a good one at Royal FloraHolland, with a rise in revenue of 11%. The supply increased, and the average price was higher.

The combination of Easter and the occasionally lovely spring weather led to a great demand for flowers and plants. The number of items supplied was about average for this period over the past few years. The average price was on the high end of the average range for the past few years. In comparison with last year, the supply rose by 2% and the average price increased by 9%. The higher average price was partially balanced out by relatively more houseplants being sold for a relatively high average price.

In cumulative terms, the revenue through period 4 is showing a growth of 3%. The number of holidays is the same as last year so far.

Direct trade
Cut flowers increased by 0.6%-point to 38.7%. In comparison with last year, the share of the direct flows increased over the entire range, with only tulips showing a slight decline. For houseplants the share increased by 2.7%-point to 78.4%. This share is already at a high level, but manages to increase further every month. There is no longer any product that lags behind in sales in the direct flows. Among outdoor plants as well, the share increased further by 3.6%-point to 74.7%. This puts the outdoor plants at a similar level to the houseplants. And likewise, there are few products that lag behind in the direct flows.

Export value rises by 7%
The export figures for March from Floridata are the most recent ones published. The export increased in March by almost 5%, with the plants doing a bit better than the cut flowers. The export to France came under pressure with a drop of 5%. And it was evident that Mother's Day was being celebrated in the UK. The export to the UK was comparable to last year. In addition, the growth in Eastern European countries is striking. Russia grew by +43%, the Czech Republic by +26% and Poland by +16%. Poland is now in fifth place, having displaced Belgium. In cumulative terms, the growth in export amounts to 7%.

In February there was (and still is) a large gap between the growth in exports and the growth seen at Royal FloraHolland. In March the growth figures started coming closer together.

Revenue of cut flowers increased by 12%
The revenue increased because the supply rose by 1% and the average price level improved by 11%. Smaller quantities of roses and tulips were supplied, while much more lisianthus was supplied. In particular, the price-setting of spray chrysanthemums was good. The price level lay almost 50% above last year's, with a comparable quantity of supply.

Price level of houseplants drops by 3%
The revenue of houseplants also increased by 12%. The supply rose by 17% while the average price level was 3% lower. As more small, flowering plants and narcissus were supplied, some pressure was exerted on the total average price.

Revenue of outdoor plants increased by 5%
The revenue increased because the supply decreased by 1% while the average price rose by 6%. As the weather turned lovely early this year, the demand for outdoor plants increased. The supply was not yet arriving in large quantities, so the interest shifted to flowering houseplants.

Source: Royal FloraHolland

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