High price level persists in this period14 October 2016
The revenue of Royal FloraHolland continues to develop positively. In the weeks between 12 September and 9 October 2016 (period 10), the revenue increased by a generous 4%.
This rise in revenue is entirely due to the price-setting. The average price rose by 5.6% and ended at 37.7 eurocent. Such a high average price has never before been realised in period 10 in the history of Royal FloraHolland. And this high price level was not linked to a particular product group but was spread over the entire assortment, from cut flowers to houseplants and garden plants.
Highest average price ever
Since May the prices have been up at a high level. It is striking that the average price in each period is the highest average price that was ever realised in that period in the history of Royal FloraHolland. At the same time, the supply has been at a historically low level since May. Demand is slowly increasing in Europe as the economies get stronger, and with slightly less supply in the Netherlands, the price-setting rises to a higher level.
The supply decreased in period 10 by 1.5%. This decrease can be ascribed almost entirely to the roses. The supply of this product dropped by 9%, equivalent to 20 million stems.
In cumulative terms, the increase in revenue amounts to 4%. In week 52 we expect a decline because there are three fewer auction days in 2016. But an increased revenue at the end of the year of about 3% is certainly possible.
The share of direct trade continues to increase
Among cut flowers, the share increased by 2 percentage-points to 30.3%. There was not much difference between the products. Gerbera and lilies are at a high level, roses and chrysanthemums are average, and hydrangea and Zantedeschia are at a lower level. But even for these last two products, their share of direct trade increased.
Among houseplants, we noted a growth of 1.8 percentage-points to 76.8%. All of these products are already at a high level. One product may improve more strongly than another product, but in general there are few laggards.
Among garden plants, the share of direct trade grew by 4.5 percentage-points to 58.8%. This puts the garden plants between the cut flowers and the houseplants, but they will have to keep working on catching up with the level of the houseplants.
Export to UK remains interesting to follow
As this article was being written, the export figures from Floridata for September had not yet been released so the export developments could not be included. An interesting aspect to follow is the export to the UK. In June and July 2016 the export of flowers and plants to the UK dropped precipitously. In August exports stabilised at the level of 2015. It will be interesting to see what happens now, given that the pound has grown cheaper compared to the euro, making flowers from the Netherlands more expensive.
Cut flower revenue increases by almost 4%
The supply decreased by 1.6%, the average price rose by 5.4%. The supply of roses in particular was badly affected, with 9% fewer stems arriving. This helped force up the average price of roses by 16%. Quantities of Lisianthus increased by 11%, but the average price remained at the same level.
Houseplants revenue grew 4%
Among houseplants the revenue also grew by 4%. The average price rose by 2%, and the supply increased by 2%. Phalaenopsis increased in quantity by 2%, but the average price dropped by 3%. For the pot chrysanthemums, the supply increased by 12%, and despite this, the average price rose by 6%.
Garden plants revenue rose by 5%
The number of items dropped by 6% and the average price was 13% higher than last year. The price increased strongly across practically the entire range. For example, the average price of Calluna rose by 18% with a supply that had shrunk by 3% compared to 2015. With Buxus the average price shot up by an amazing 28%, while its supply dropped by 26%.
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- 10 November 2016
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