“With the mandatory NAT (non-auction turnover) statement, we are creating a level playing field”

"Look," says Tineke van Berkel, turning her computer screen towards the visitors, "the RFH Finance app is very easy to use. I only need to fill in a few fields and can then submit our NAT. We prefer to do this monthly. If we do it annually, we have to pay off a large amount in one go. With monthly NAT remittance, it hurts a little less." Tineke laughs fleetingly. Before adding: "But it always hurts. The margins are small. Ideally, of course, we wouldn't pay any NAT."  

Tineke van Berkel is the wife of Sjaak, the son of the founder of JM van Berkel. The Hillegom-based nursery - also operating in Spain under the name Flores Andalucia BV - supplies various flowers, including tulips and gladioli, to exporters and supermarket chains. Most directly, some via the clock. JM van Berkel has one major non-auction turnover (NAT) customer who they sell to on an invoice basis. Tineke: "That party prefers to do things that way, so we go along with it.' Royal FloraHolland plays no role in that but, nevertheless, we still pay a small 2 per cent commission. That's just what we agreed on."

Walter Straathof nods as he listens to Tineke. "The members have agreed cooperative ground rules with each other, which are laid down in Article 18 of the articles of association. One of those ground rules is that all member sales must be settled through Royal FloraHolland. This includes product revenues generated as non-auction turnover (NAT). Including invoice sales and private sales. This applies to national and international members," says Walter, who was a grower for 25 years and is now co-responsible for NAT control at Royal FloraHolland. "For Royal FloraHolland, NAT is important. As a member, you can use all Royal FloraHolland's services at the lowest possible rates, which is possible thanks to the size we have as a collective. In return, you must settle all trades through us. In this way, we create a level playing field for all growers. And we keep the cooperative strong. If growers did all trade with 'easy' customers on a non-auction turnover (NAT) basis, only the 'difficult' customers would remain for Royal FloraHolland. That's too risky. Then we erode the cooperative, the economies of scale disappear and we end up having fewer and fewer reasons to exist."

Members understand this. Tineke van Berkel recognises it, so too does Albert Kiep of chrysanthemum grower Kiepflower in Nieuwaal, Gelderland. Almost half of their product revenues come through non-auction turnover (NAT) trading. "Sometimes it feels unfair; Royal FloraHolland does not have to perform any administrative tasks for those transactions and does not take on any risks. But they still get money for it," Albert says. "Intermediaries have a competitive advantage over us growers when they buy from non-RFH affiliates, who are often based abroad." They do not pay NAT on this. That puts us at a disadvantage as growers. We have to recoup that shortfall somewhere. Margins are minimal. Therefore, the commission rate matters a great deal. Although I find it difficult to determine what a good percentage actually is."

Albert, also a member of the Members' Council, continues: "I don't think it's right to leave the cooperative just because of the NAT levy. Royal FloraHolland still adds a lot of value to our other turnover: logistically, administratively, and financially. This allows us to cover some of the risk associated with customers who are less reliable payers. The cooperative spirit also remains important to me. We must do things together to be strong."

Tineke concurs. "For us, membership still offers significant added value, partly because of the clock and payment security. I know growers who are canceling their membership, partly because of the NAT settlement. For us, that's too risky."

Albert settles his NAT levy annually. "That works best for us, even if that large amount is rather painful." The RFH Finance app works fine for him, although "it would be nice if you could also submit NAT statements directly within Floriday. That would save some administration."

Walter indicates that a link to NAT orders within Floriday is on his wish list. He also says that checks on compliance with NAT payments are being expanded. Growers have until August 1 to submit their NAT returns for the previous year. Those who are late will face an additional 2% surcharge. Growers will also be inspected at least once every three years from now on. "Above all, our goal is to help growers submit their NAT declarations in the most straightforward and pleasant way possible. This is one of the reasons why the RFH Finance app was developed. In any case, we also exist to enforce agreements. We do so in the interests of all members. They made those agreements with each other for a reason," Walter concludes.