As an emergency measure, Royal FloraHolland is requesting growers to temporarily supply fewer products. For tomorrow’s flowers, the auction applies a maximum percentage of 30 per cent of the number of flowers compared to last Tuesday 10 March 2020. This is 50 per cent for houseplants and 75 per cent for garden plants.
Above these percentages the products will not be auctioned. Moreover, A2 and B quality flowers and plants may no longer be supplied. In addition, products will no longer be over-auctioned. These supply-regulating emergency measures are reviewed from day to day based on the information we have at our disposal.
Over the past two weeks, prices were already lower than normal, with prices dropping up to 50 percent. Expectations for the coming weeks are even worse. Normally, this time is the peak period for floriculture in the run-up to Mother’s Day in various countries. The usual turnover in this period is 150 to 200 million per week.
Last Friday 13 March 2020, twenty percent of the supply had to be destroyed because there weren’t any buyers for it. This morning, this historically high percentage was much higher for flowers with almost 50 percent, for plants it was more than 30 percent. Mondays 16 March, clock supply was already 25 percent lower than normal.
Royal FloraHolland regrets for growers that this emergency measure currently has to be implemented. In the coming days, an assessment will be made on a daily basis as to which measures are necessary with regard to supply and this will be announced through regular communication channels.
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