Flower Council of Holland under threat
This week the Dutch flower industry is being asked to vote on a new way of funding The Flower Council of Holland which faces closure if an agreement is not found by the end of 2023.
The move comes as a result of a draconian decision by Royal FloraHolland back in 2021 to cease collecting the levy used to fund the FCH activities on the grounds of unfairness in a changing market.
Flower Council of Holland was formed some 40 years ago with the remit to promote flowers and plants irrespective of source. Funded by monies collected via the auction – at that time the only way product was sold – FCH has created a number of major promotions ranging from the highly successful Friday is Flower Day, Why Wait and more recently We need more flowers. In addition, it has carried out extensive research and consumer analytics to create a far greater understanding of consumer buying patterns and needs.
In 2021 Royal FloraHolland (RFH) decided that it was becoming increasingly unfair and difficult for them to be the ‘levy collector’ as more and more companies circumnavigated the auction and sold product directly or via other platforms meaning that they were not contributing to the general kitty but gaining an unpaid benefit funded by the few. As such RFH unilaterally decided to cease collections from 1st January 2024 which has already meant FCH have had to make some hard budget cuts.
The new suggestion is that a General Binding Declaration (GBD) be introduced whereby all companies selling flowers and plants contribute funds via a levy (a bit like the old penny on a box system we had in the UK back in the 60’s and which funded the now defunct Flower Publicity Council which morphed into the now also defunct Flowers & Plants Association) and which will be administered by a third-party company.
However, between today (March 27th) and April 7th the sector will be voting on the feasibility and agreement, and which will determine the FCH’s future.
For the new head of FCH, Yvonne Watzdorf, it is a now or never decision. "In fact, it is about retaining the collective strength and knowledge accumulated in over 40 years of consumer promotion," she says. “We collect knowledge about consumers, as well as their preferences and behaviour, and translate this knowledge into creative campaigns and activities that stimulate demand for flowers and plants. And we do this in the most important European markets and high-potential countries. The ultimate goal is to encourage consumers to buy more flowers and plants more often. This is the essence of the work we do for the sector. We share our consumer knowledge and campaign materials with sector professionals so that everyone can benefit."
But FCH realise they have to change too. “A new aspect is that we’re making extra efforts for sector communication, so the general public more understands the craftsmanship and innovative power of all those ornamental horticultural companies. “With the stories about the efforts, results and ambitions for a sustainable sector, we can contribute to a positive image of the sector. Do we want to collectively invest in consumer communication, knowledge and cooperation? That is the question at hand. It is now or never.”
To say Royal FloraHolland’s decision has ruffled feathers would be an understatement. According to a statement published in Dutch press the VGB, the Dutch Association of Wholesalers in Floricultural Products accuses Royal FloraHolland of irresponsible behaviour by putting at risk the very existence of the Flower Council of Holland and its generic floral promotion activities.
Its official statement reads, “The AVV for sector promotion will cause chaos and confusion and is proof of an unrealistic funding mechanism for trading companies and growers. Royal FloraHolland’s unilateral decision in 2021 to stop collecting assessments for promotion activities on 1 January 2024, will turn the generic promotion dream into a nightmare for the entire Dutch ornamental horticulture sector.”
Editors comment: Read why our Editor, Caroline Marshall-Foster feels closing Flower Council could be a catastrophic decision here
