In the first half of 2020, turnover in the Royal FloraHolland marketplace was 2.3 billion euros as a result of the corona crisis, 10 percent less than in the first six months of 2019. The average price of flowers was 2.8 percent lower, houseplants 3.6 percent higher and garden plants 16.8 percent higher. The volume decreased by 11.7 percent. The last weeks of the first half of the year saw a strong recovery. High prices led to good sales, while there was still lagging supply.
David van Mechelen, CFO Royal FloraHolland: “The first half of 2020 was very difficult for the sector. The losses for growers were sometimes very large. The Noodfonds Sierteelt provided a safety net, but many growers have had to bear a loss of turnover of up to 30 percent. Because there was much less supply and the shift from clock to direct, the number of carts with flowers and plants is much less than last year. This shift was partly caused by a different composition of the supply that was and is still disturbed by the corona crisis. As a result, income from logistics services for Royal FloraHolland is much lower and we are making a substantial loss this year. There is a considerable financial challenge. At the same time, the crisis shows that our strategy is the right one. We will therefore accelerate its implementation wherever possible and we are confident that we will succeed. ”
Cut flower sales fell by 14 percent in the first half of the year. The number of stems fell by 12 percent and the price by 4 percent. This has been driven by the top of the corona crisis. In the week 12-25 period, cut flower sales were down 24 percent, 20 percent of which were number of stems and 5 percent lower in price. The supply of cut flowers fell by 12 percent. The reasons for this decrease are limited supply from Kenya and Israel and supply regulation in the first weeks of the corona crisis. Growers have also sometimes suspended cultivation. The loss of supply from Kenya and Israel had an impact on the clock share in trade. The production from those countries is actually sold on the clock. The rose remains the leader as the most popular flower with a turnover of 327 million in the first six months. The tulip is a close second with a turnover of more than 197 million euros. The total number of cut flowers sold via Royal FloraHolland was 5.2 billion, a decrease of 12 percent compared to the first six months of 2019.
In houseplants, turnover decreased by 7.1 percent, the price compensated for the decrease in volume by more than 10 percent. In the period week 12 - 25, sales fell by 14 percent, the number of units was 18 percent less and the price was 5 percent higher compared to last year. Within the group of houseplants, the Phalaenopsis (orchid) is at the top in terms of both turnover and number of pieces. Sales fell by 10 percent during the entire first half of the year, and even fell by 20 percent during the peak of the corona crisis. Anthurium stands out in the top 5 turnover with a growth of 1.8 percent, despite the corona crisis. 80 percent of all houseplants are sold through direct transactions and the other 20 percent through the clock.
The garden plant season has turned out very well despite corona. The first half of the year ended with a turnover increase of 8.8 percent. The supply fell by almost 7 percent, but the good pricing (+16.8 percent) more than made up for the loss. In total, nearly 206 million garden plants were sold. Lavender tops the turnover rankings by almost 20 million euros. This is more than 20 percent more than last year.