The Emergency Fund for ornamental horticulture can soon get off to a flying start
Royal FloraHolland is delighted with the government's support in the form of an Emergency Fund. The Emergency fund sized at 600 million euros, will make it possible to cover part of the damage in the ornamental horticulture sector during the period of March to May. Because growers and exporters can continue to work, a flying start is possible if international demand increases in the coming period. This is crucial for the recovery of this important export sector.
The Emergency Fund is not sufficient to cover the entire damage. The first 30% of the drop in turnover is considered an entrepreneurial risk. The remaining 70% of the damage will be compensated to a considerable extent. The government's overall support package and the banks' increased lending will help the sector through this difficult period. It is important that the sector gets back on its own feet as soon as possible.
The CEO of Royal FloraHolland Steven van Schilfgaarde in a video message in response to the Cabinet's decision observed that "the Emergency Fund ensures that many Dutch growers can keep their businesses open. As an entire sector we can and must now prepare for a flying start when international demand picks up again".
Van Schilfgaarde emphasizes that the world after the corona crisis will look different. "We will have to prepare for lower volumes in the near future. We will have to rebuild that as soon as possible after the crisis. We will do that by accelerating the implementation of our strategy with 100% Digital and National Auctioning as spearheads" he remarked.
Royal FloraHolland is also taking measures to adjust the cost structure during the crisis and afterwards. This is seen as necessary for a financially healthy future.