Volume roughly the same: consumers still want flowers
FLORAHOLLAND AALSMEER, 7 January 2010 (press release) - FloraHolland Flower Auction has ended the economically-troubled year of 2009 with sales in excess of 3.8 billion euros. This is 5% less than the previous year but better than forecast in May (-10%). In particular, the strong euro caused a drop in sales and prices in a number of export countries. Cut flowers were responsible for sales of 2.1 billion euros (-12%). House and garden plants did relatively well, with 4% growth and sales of 1.7 billion euros.
The number of flowers which were processed was roughly the same as last year at 12 billion pieces (-1%). This shows that most western European consumers are still buying plants and flowers despite the poor economy. “The ornamental plant and flower industry continues undaunted. We are still leading internationally with sustainability and innovation,” says Timo Huges, general manager of FloraHolland.
A considerable proportion of the 5,000 Dutch and international members of the FloraHolland cooperative have had a difficult year with declining returns. “Even so, the sector continues to innovate. With energy-neutral or even energy-generating greenhouses, productivity increases through multi-layer greenhouse construction and a floating greenhouse, the sector is investing not only in itself, but also in the Dutch economy,” claims Huges.
Digital business accelerates
Sales through the main sales instrument, the forty auction clocks at the six FloraHolland marketplaces, ended at 2.4 billion euros (-9%). This year again, there was a slight shift from clock sales towards sales through the nationally-operating intermediary organization FloraHolland Connect. The turnover of Connect, mainly active within the direct flows between growers and traders, increased by 2% to a total of 1.4 billion euros. The growing supply of orchids along with an exceptionally good garden plant season contributed significantly to this increase in sales.
Digital business accelerated even further within the ornamental plants and flowers chain in 2009 at both Connect and the auction clocks. FloraHolland expanded the digital possibilities and the appeal of the clock by increasing the number of projection and image auction clocks. This occurred particularly among the export auctions (Aalsmeer, Naaldwijk and Rijnsburg), where significant steps were taken in synchronizing auction schedules. “In order to combine supply and demand and to keep the clock affordable for the chain, a further disconnection of the commercial and logistical processes is unavoidable,” says Timo Huges.
The use of the digital trading platforms PlantConnect.nl (for plants) and FloraHolland e-Trade (for flowers) increased. Remote Buying (KOA) - buying from the clock from a different location – grew considerably. Over 45% of the flowers purchased at the three export locations are now bought in this way. The use of webshops by export and wholesale customers of the auction also increased visibly.
Joint venture for a strong Euregion marketplace
The three regional marketplaces (Venlo, Bleiswijk and Eelde) benefited from the relatively-improved sales situation in the Dutch market. Venlo had a good year, while sales at Eelde and Bleiswijk stayed at a reasonable level.
FloraHolland took a significant step across the border this year. Research into partnership with the German Landgard auction organization resulted in the setting up of the Veiling Rhein-Maas joint venture in Herongen (D). The clock activities of FloraHolland Venlo and Landgard were merged during October 2010. The aim of the joint venture is to create a strong, internationally-oriented marketplace in the Euregion.
FloraHolland invested a total 55 million euros in Dutch marketplaces during 2010. With this, the auction organization remains slightly below the level of the depreciations. Investments include property (conversion of processing space for customers), a single uniform stacking trolley, further digitization and fire safety.
Photo caption: Seven new projection clocks were installed at the Rijnsburg export location in November.
About FloraHolland
The cooperative flower auction FloraHolland offers growers and customers a network of six national and international marketplaces (Aalsmeer, Naaldwijk, Rijnsburg, Venlo, Bleiswijk and Eelde), a national intermediary organization (FloraHolland Connect) and an internationally active Import department. Annual turnover exceeds 3.8 billion euros. FloraHolland, the world's largest auction organization, processes over 12 billion flowers and plants a year. Almost 4,400 employees work at FloraHolland.