Rates rise at Royal Flora Holland
With the flower and plant industry facing huge challenges and exceptionally bad market conditions, the biggest handler of product, Royal FloraHolland has announced a number of price increases to offset the impact on its own turnover.
Because despite its own cost cutting efforts, the turnover at RFH was down in 2022 and is on target to record a downturn in 2023 as well.
Commenting in a recent release RFH said “The financial results of many growers are under enormous pressure and numerous growers are being forced to draw on their reserves. Due to sharply increased costs of energy, among other things, and less income due to lower supply volumes, Royal FloraHolland will also suffer losses in 2022, and certainly also in 2023. This despite substantial cost savings over the last few years coupled with ongoing investment in Floriday, new logistics and nationwide auctioning.”
Against this background, a proposal for 2023 tariffs was drawn up by the Board of Directors and approved by the Council of Members. The management sought a balance between the effect of the increase in fees on the business operations of growers and limiting the loss of Royal FloraHolland.
A difficult puzzle, in which various alternatives for this rate adjustment were considered and discussed, all with pros and cons, with differences between members and non-members. As a result, Royal FloraHolland's rates for growers and also buyers in 2023 will unfortunately rise more than in previous years. Something that is unavoidable.”
Whilst there have been some downward numbers, and simplification on other charges, the majority of costs will rise which no doubt will need to be, in part passed on to buyers.
It will be interesting to see if the increasing move by some growers to work directly with buyers, rather than sell via RFH will continue in order to protect prices but overall and given the volumes we would anticipate this will bring added pressure to an already sensitive market.
You can read the full report and price rises here
