Spring this year was completely different from last year. Last year was bleak with lots of rain and cold. This made it difficult to grow and harvest outdoor crops. This spring weather was relatively mild, which meant that everything went well. As a result, there were more peonies, hydrangeas and summer flowers, among others. For tulip bulbs, it's a different story. The 2023/2024 season was a disaster in terms of weather, resulting in fewer bulbs being available for the 2024/2025 season. The decrease in the total number of items is largely due to the tulip yield and the lower harvest of roses and chrysanthemums. Due to the interplay of supply and demand, this does result in higher prices.
*These figures are for the period up to week 38
Looking back to 2019, the average price is considerably higher on a weekly basis, with the exception of a few weeks in summer period. A good overall sign for the future. Unfortunately, this provides no information about the results for individual companies. General running costs are rising faster than revenues. Not only in the Netherlands but also internationally.
The number of sales channels is increasing, including within Royal FloraHolland. For example, Connect, Auction presales, Match & Connect and Floriday Daytrade. Fragmentation of prices and supply is a looming threat. Defining and maintaining a clear sales strategy is vital for optimum price stability. The clock is the tool for determining the (daily) price for a product within the mix of supply and demand. This also determines the pricing and negotiation of other platforms, both nationally and internationally. In order to obtain the best price from the clock – and therefore the market – regular supply is absolutely key. If the product is offered every day at auction, as an auctioneer I can “create a market” for it at market-based prices. Is the product there irregularly and with varying grading characteristics? Then it is difficult to achieve market-based prices. This will have a negative impact on all your other sales channels.