Finance

More expensive bouquets and plants provide Royal FloraHolland with record turnover

The turnover on the Royal FloraHolland marketplace last year amounted to 5.6 billion euros. 12.1 billion pieces of flowers, bouquets and plants were sold for that amount.

Higher energy prices passed on

In the previous record year of the flower auction, 2019, 12.3 billion units were sold. At 4.8 billion euros, turnover in that year was a lot lower than now. In the gap year 2020, turnover and volume still decreased, to 4.7 billion euros and 11.4 billion units respectively.

Cut flowers, house plants and garden plants became more expensive. Horticulturalists passed on higher costs for energy, among other things, to the consumer, according to the auction. Incidentally, that consumer is mainly abroad; ornamental flowers and plants are the third largest export sector in the Netherlands.

The flower industry has been suffering from rising energy prices for some time. More expensive transport (about 85 percent of what is traded goes abroad) and higher energy prices in the Netherlands have an upward effect on prices, according to the auction.

More sustainable production

“Some growers sometimes lower the temperature in the greenhouses or leave the greenhouse partially empty. This leads to fewer products and therefore a higher price,” said a spokesperson.

Royal FloraHolland is concerned about the rising energy prices and hopes that the new cabinet will now speed up with ‘stimulating policy’ so that growers can produce more sustainably. Investments for this are substantial and the current subsidies are not properly arranged, according to the auction.

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