The differences per country are strongly increasing and the effects of currency fluctuations are emphasizing the importance of export dispersion.

The development of new market segments, concepts and internet applications in combination with the right basic quality, flexibility and strong logistical service are able to strengthen the position of Dutch wholesale, according to the VGB.

Cool weather in Northwest Europe in the first quarter, the most important marketing area for Dutch exporters, limited the sale of pots, particularly garden plants; this weather picture, and also an early Easter, promoted flower sales. With an increase of 7% in March, there was still a deficit of 8% in plants, though back to a minimum of 2% of the turnover value of €542 million in the first quarter.

The export value of cut flowers increased by 17% in March and by 6% up to and including March to slightly more than €1 billion, according to the information gathered by Floridata that were published and denoted by the VGB.

From -3% to +3%

After the first two months of this year, the export value of flowers and plants had decreased by 3%. Because of a strong plus in March, this changed to an increase of 3% and was rounded off at €1.6 billion, almost equalling the quarterly record of 2012.

Last year, with a quarterly turnover of € 1.5 billion, there was exactly the same export value as in 2013. The first quarter of this year is also the forth consecutive quarter with an increase compared to the same period a year earlier.

Larger differences

Per country, the differences are larger than in the first quarter of last year. Then, there was a bandwidth between -8% (€160 million in France) and +18% (€46 million in Poland). Now this is between -29% (€64 million in Russia) and +17% (€263 million in the UK and €188 in France).

Percentage-wise, the largest increase took place in the first quarter in the flower export in the US. In relation to cut flowers, America crept into the top ten of sales destinations with a total of  25 million, in the total levels, this growing market is still in 12th place.

Currency fluctuations

The strong plus in America is due, on the whole, to the increasing dollar price in relation to the Euro. The same effect can be seen in the export sales to England.

"In combination with a better economy," according to sales leader, Gert Woelderink of Javadoplant. "What we have already seen in the increase of flower sales by retailers in England is now being mirrored by plant sales."

Up to and including March, the export sales of pot and garden plants to England increased by 27% to €58 million, according to further analysis by VGB, and cut flowers have increase by 14% to €205 million. “Higher flower prices and the earlier English Mother's Day have had a positive effect," added director, Hein Schreurs of Premier & Blenheim.

In March, the effect of the weaker Rouble price on flower and plant exports to Russia led to a drop of 16% to €64 million. “The Ruble price is increasing slightly. It looks like stabilisation is on its way, but lets not draw count our chickens before they're hatched," advised Schreurs, cautiously. The crimp of 16% in in the export to Russia is the lowest of the last six months. The deficit is 29% and Russia has now been pushed out of the top ten by Italy (+6% to €72 million).

Damping down fluctuations

The large differences in export developments, due to the relatively large spread of countries of export of flowers and plants, generally levelled out. As in the first quarter last year as well as this year, the top ten destination countries counted for 83% of the export sales. In both quarters, 63% of this value was calculated in euros. "Export spread is essential for the sector because in this way, risks can be covered. The international trade streams also react strongly to movements in the market and fluctuation in currency valuations, the effects of these are still not fully realised," states the VGB.

"From an apparently strong market position, Dutch wholesalers are working on the development of new markets, new marking concepts and smarter applications of information and communication technoligies. In this way, economies of scale and more intensive working relationships with chain partners can stimulate flower and plant sales. The conditions are of course the availability of a wide range and the proper basic quality."

Source: VGB