5.5% increase for Holambra auction

The Holambra auction in Brazil realised a 5.5% turnover growth last year. CEO Andre van Kruijssen is moderately satisfied. “I feel that our growth should be bigger, but considering the fact that Brazil has been going through a political and financial crisis and growers faced some climatological problems, a 5.5% growth is acceptable.”

Turnover of both the clock (+2%) and the intermediary services (+8%) went up. Sales through the auction clock reached 208.6 million real (60.5 million euro) and the intermediary services turnover reached a total of 380.5 million real (110 million euro). The total turnover was almost 175 million euro. The auction clock makes up for around 35% of the turnover and the intermediary services for around 65%.

Holambra has also got a digital marketplace; so far it only realises a small turnover, but this will grow rapidly in the coming years. Rates are the same for all three distribution channels.

The auction is going to put the turnover growth towards increasing its liquidity to the amount that the growers make in two weeks. “That way, we aren’t too dependent on the banks”, says Van Kruijssen. The CEO points out that the inflation rate in Brazil was 7% last year. “So, you could say that we’ve lost 1.5%.”

Brazil’s inflation rate is expected to drop to 5% this year. Van Kruijssen: “The best thing then, would be to reach a turnover growth of 10%. That means an actual growth of 5%.” The auction’s forecast for the coming year is a turnover growth of 8%.

An area that Holambra wants to strongly focus on this year is the sales of cut flowers to supermarkets. Van Kruijssen thinks it’s a market that’s still developing. “Cut flowers are mostly used for decorations at parties, weddings and other celebrations. We’d like to promote buying flowers for personal use. If supermarkets sell flowers, they’ll be more accessible for consumers.”