Summerperiod: supply decreases, average price rises18 August 2016
In the recently completed period 8 (from July 18 to August 14, 2016), the supply declined by 1% and the average price rose by 5% compared with period 8 last year.
Period 8 falls in the middle of the summer months, although there are differing opinions about what kind of summer it has been. At any rate it was school vacation in the Netherlands and in our sales markets abroad, resulting in a lower level of demand. We have not had long periods with extreme temperatures, so the demand for flowers and plants continued smoothly in this period.
The revenue of Royal FloraHolland also remained high in this period, with an increase of 4%. The supply decreased by 1% and the average price rose by 5% compared with period 8 last year. This period already had a high average price. The average price in the past few weeks was higher than the average price level in March and April.
The cumulative growth in revenue is currently 4.3%. Given the current positive revenue development and the surrender of sales days at the end of the year, the revenue growth is expected to be about 2.5%. The supply and the price-setting are each responsible for half of that growth.
Despite the vacation period, the sales of flowers and plants through direct trade continued to increase. For cut flowers, the proportion of direct trade increased again after a plateau in period 7 and rose 2.1 percentage-points to 33.5%. The general situation did not really change. There are more and more products heading towards 50%, however. Gerbera, lily and freesia belong to this group, and seasonal products like sunflower and gladiolus are joining them. There is also a constant group that achieves few sales through direct trade, like Hydrangea and Zantedeschia.
For houseplants, the proportion of direct trade increased 2.1 percentage-points to 78%. There are few products here that lag behind. The lower limit is about 66.6%, and the upper limit is around 90%.
For garden plants, the proportion of direct trade increased 5.6 percentage-points to 63.3%. Here the spread is somewhat larger with Calluna at the bottom with 14% of sales through direct trade and Sempervivum at the top with 88% of sales through direct trade.
Through July the export revenue of flowers and plants from the Netherlands rose by 2% to €3.6 billion. With an increase of 4.3%, plants are doing better than cut flowers (1.3%). The differences between countries are large. While the export of flowers and plants to several countries rose greatly (Germany, France and Italy), the export to a few countries that had done well at the beginning of the year came under pressure. They include the UK and Poland. The exportdevelopments are based on the exportrates from Floridata.
For cut flowers, the revenue increased by 1.4%. The supply declined by 1.2%, while the average price rose by 2.6%. The supply of roses was particularly under pressure. Both the supply from the Netherlands and the supply from abroad decreased by 6%. The other top 5 products scored an average growth. Eustoma showed one of the best improvements with a supply increase of 10%.
For houseplants, the revenue increased by 10%. The supply increased by 1.5%, while the average price rose by 6.5%. This is a great result for the summer period. Phalaenopsis came out just above average with a price increase of 7%, Anthurium was well below with no change whatsoever.
For garden plants, the revenue increased by 4%. The supply decreased by almost 3%, while the average price rose by almost 7%. There were also large differences between the products here, too. The average price of Hydrangea rose by 16%. The average price of Buxus dropped by 15%.
More figures and data?
- Look at FloraneXt for more figures and data
- You can find more information about your sales on the market insight (only for growers)
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