FLORAHOLLAND AALSMEER, 20 May 2010 (press release) – With annual sales of €3.8 billion in flowers and plants last year, the FloraHolland flower auction saw no growth in sales for the first time in years. “The floricultural industry seems to be rebounding in the first few months of 2010,” says general manager Timo Huges. “For growers, traders and the auction, 2009 was a difficult year. But it’s good to see that European consumers are continuing to buy plants and flowers, this year too. I trust that the Dutch floricultural industry will retain its strong global position due to its resilience.”
In the first four months of 2010, auction sales increased by almost 7 percent. Half of this was due to higher average revenue for growers.
Day trading increasingly virtual
The ongoing digitalization of sales systems is an important part of FloraHolland’s strategy. Together with partners in the chain, the auction is working on a digital platform. Sixty percent of all cut flowers are already being sold at the export auctions in Aalsmeer, Naaldwijk and Rijnsburg based on information without the product being physically present in the auction hall. This is done using ‘Remote Buying’ (KOA), a system enabling online purchasing outside the auction halls and by image auctioning. “Image auctioning, which is selling on the basis of a product photo, is aimed at better pricing and ensures that the auction clock is and remains an attractive sales instrument,” says Huges. “It also enables us to configure our commercial and logistical processes more efficiently and therefore save on chain expenses.”
Digital day trading through the FloraHolland Connect intermediary organization is also increasing. FloraHolland’s two electronic trading platforms (e-Trade for flowers and PlantConnect.nl for plants) are being expanded.
Broader range through international supply
FloraHolland is reinforcing its position in international flower channels by retaining international supply. The auction imports flowers from 60 countries. Twenty-five percent of cut flower sales come from other countries. About 60 percent of this in turn is from international cooperative members and this share is growing. The auction’s clients (exporters and wholesalers) export flowers and plants to almost 140 different countries.
Earlier this year, FloraHolland acquired the TFA import auction. This made its product range more appealing.
Just across the border in Herongen, Germany, FloraHolland is working in a joint venture with the German organization Landgard to open the new Rhine-Maas auction. This will combine the auction clock supply of three auctions (including FloraHolland Venlo). “Such a powerful marketplace in the Rhine-Maas greenport allows us to strengthen service just over the German border,” said Timo Huges.
Photo caption: Sixty percent of all flowers at the export auctions are sold based on information, without the product being physically present in the auction hall (photo of rose auction hall, Aalsmeer)