This follows from the Netherlands-based trade association’s, VGB’s, monthly Top 10 of exporting countries. "The plant market recovered in February, the flower market hasn’t yet. The disappointing start seems to be related to the lack of a trading day, adverse weather conditions and consumers being more cautious. Exporters maintain moderate optimism about the sales potential in 2016," it concludes.

Dutch exporters achieved 6% less turnover value in January, to €239 million and €127 million for cut flowers and pot and bedding plants respectively. There was a decline for practically all top 10 export destinations except Belgium (+ 9%) and Poland (+ 1%). Even in the more than one hundred other countries where plants and flowers from the Netherlands are exported, there was an average decline of 2%. This category has a market share of around 16%. The top three customers in Germany (-5%), the UK (-4%) and France (-6%) have a market share of 60%. Last year the value of exports to these countries still rose by 2%.

Recovery plant market

Gert Woelderink, head of sales at Javadoplant, said, "Dark and gloomy weather in January did not encourage visits to garden centers. February is already much better: it seems that we are catching up again." He believes that the French retail market is especially solid.

Waterdrinker Sales Manager, John Buskermolen, addedd, "It has been quite cold in large parts of Europe but we’re positive about the plant market. You see a revival among consumers, who are beginning to use plants more often again. Plants brighten the catalogs and websites of lifestyle suppliers more frequently. We received a lot of positive reactions about a botanical plant range we introduced.”

Flower start not promising

Director Arco van Duyvenvoorde of Van Duyvenvoorde Flowers & Plants, said, "The start of the flower sales was not very promising this year. It was disappointing in general. It didn’t recover in February. Valentine's Day being on a Sunday didn’t help. In the days after there was notably less demand." He points out that January saw twenty trading days this year. In the previous two years this was 21 and in 2013 even 22. "This also needs to be taken into account when export figures are interpreted."

In the past decade January, ended positively six times and four times with an arrears. The largest decline (11%) occurred in 2010 when the year also ended with the best increase of +5.4% to €5.1 billion in export turnover. After the overall positive conclusion of 2015 for the flower and plant trade, Duyvenvoorde remains optimistic. "There is a bit more uncertainty. The influence of doubt in politics is greater. The discussion about a possible Brexit is concerning."

Declining markets

The numbers nine and ten of the Top 10 destinations of flowers and plants from the Netherlands reinforced their declining market status acquired in January 2015. Number 9, Russia, dropped sharply by 39% through the €10 million limit whereby the decline in flowers was strongest. Since the ruble crisis of 2014 the decline has never been greater. Van Duyvenvoorde said, "Unfortunately, the market will not recover for now. Luckily we were able to compensate in other countries last year but it hasn’t been easy.''

In Austria mainly the plants are responsible for the overall backlog of 24% compared to 2015. Exporters have no clear explanation for this. They do see a partial diversion of trade flows from the Netherlands to the Rhein-Maas marketplace just across the border in Herongen. "The range there is less wide than in the Netherlands," Buskermolen said.

Netherlands’ strengths

A wide range in all desired categories, structurally rising quality, high availability and fast, reliable logistical service, have always been strengths of the Netherlands as a supplier of flowers and plants. The direct lines between producers and wholesalers are rapidly becoming more extensive. Wholesalers are also developing new marketing concepts playing into the additional capabilities of the internet and new media.

According to the VGB, "This also gives rise to new partnerships, which will be the marketplace of the future. It will strengthen the wholesale hub of flowers, plants and floriculture products.”

VGB is the Dutch trade association for the domestic, exporting and importing wholesale of flowers and plants. Its members represent €3.5 billion of annual revenue in the industry.

Source: VGB