High prices for cut flowers in the first half of July21 July 2016
In the first two weeks of July 2016, the prices of cut flowers were extremely high. The average price for the flowers lay at least 28% above the level of last year.
In the first half of July 2015, there was lovely summer weather, which drove the prices rather low. This year, in contrast, it was not really sunny and warm in the same period, which kept the demand for flowers at a good level. This led consequently to a higher price level.
At Royal FloraHolland we saw a rise in turnover of 14.6%, a good result for the summer period. Houseplants and garden plants lagged behind this development. The price increase for these product groups was just 2% to 3%.
In cumulative terms, the rise in turnover was 4.35%. If we take into account the correction for week 1 and the fewer auction days in week 52, the cumulative growth is 1.5%.
Direct trade did not increase
Despite the good price-setting for the cut flowers, the share of direct trade did not increase. It seems to be expected that with a good demand for products, the exporters should secure products for the direct trade. This was not the case. The risk of summer weather and thus a decline in demand was apparently too great to build up a stock of many products.
The share of direct trade decreased among the cut flowers by 1.4 percentage-points to 30.7%. The mutual relationships did not change much, however. There was a high proportion of gerberas, lilies and freesias. For chrysanthemums and roses, the contribution was slightly above average, and hortensia, zantedeschia and summer flowers had a low share.
Among plants the proportion of the sales in the direct trade did increase. For both houseplants and garden plants, the share rose by about 1 percentage-point to realise 76.9% for houseplants and 63.6% for garden plants.
Export figures fluctuating
The export figures for the month of June are the last available figures for 2016. In this month the export of flowers and plants rose by 0.9%. Plants did a bit better than flowers, with an increase of 1.6% compared to 0.3%, respectively.
The results for both the flowers and the plants varied widely from country to country. The export to the UK, Poland and Italy dropped, while an increase was seen in Germany, France and Austria.
In cumulative terms, the export grew by 2.5%, with cut flowers rising by 1.3% and plants by 4.5%.
Just like in May, Royal FloraHolland grew more strongly in June 2016 than the export.
Growth of sales of cut flowers by 27%
Cut flowers have experienced a good period. In the period from mid-June to mid-July 2016, sales rose by 27%. The supply declined by 1%, and the average price jumped 28%. Prices rose over the entire range. Only dianthus and cymbidium lagged behind with a price increase of 7% to 8%. The number of roses supplied lagged behind 3%. This was mostly compensated by gerberas and lilies, whose supply both grew by 7%.
Growth of sales of houseplants by 2.4%
Among houseplants the supply declined by 1% and the average price increased only by 3%. The larger demand for cut flowers, resulting in a strong price increase, did not affect the houseplants. Houseplants averaged €1.60, which is high for this time of the year, but not as extreme as with the cut flowers.
Both the supply and average price of Phalaenopsis hardly changed compared with 2015. Kalanchoë and pot roses did somewhat better with an increase in sales of 11%, mainly due to improved price-setting.
Drop in sales of garden plants by 10%
The supply decreased by 12%, the average prices rose by 2%. The supply decreased over almost the entire range. Only the supply of carnations for the garden increased by 14% in combination with a 12% rise in average price.
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