Dutch plant and flower exports in 2016 are nearing a record turnover of € 5.7 billion, which is a 3% increase. VGB based this forecast on the figures that Floridata compiled on Dutch wholesalers’ results up until November. Exporters expect a similar development for 2017, as long as consumer confidence will continue to improve.
Up until November 2016, the turnover of flowers increased with 2% and that of plants with nearly 5%, reaching € 3.3 and € 2 billion respectively. January was the only month in 2016 during which the Dutch export value went down; in all other months, Dutch exporters increased their turnover.
This can be seen in the VGB’s monthly report on the top-10 sales destinations, based on the export statistics that Floridata collects from their member exporters.
Sales to Germany, the largest market, increased up until November with nearly 7%, reaching € 1.5 billion, which represents 60% of the total growth of € 165 million.
Sales to the United Kingdom went down by 4%, making it the only top-10 country that showed a decrease. During the first quarter, there was still a slight 1% growth for the English market, but they fell behind by 1% in the second quarter and during the third quarter sales to the UK plummeted 5.5%. This is partially caused by the fact that the exchange rate of the British pound dropped after Brexit.
Ongoing trends
“This is a trend that will continue in the new year”, says Dutch Flower Group’s CFO Harry Brockhoff. “And if the recent development of greater consumer confidence is here to stay, the modest and stable growth of plant and flower sales will persist. But that, in turn, also depends on political stability”, he continues, referring to the 2017 elections in several countries, including France, the Netherlands and Germany.
DGI’s managing director Marius Dekker speaks along the same lines. “It’s hard to say what the effects of Brexit are going to be. Both local and regional economies have an impact on how people feel about purchasing plant and flowers.”
Disruptions
The international supply of flowers was disturbed earlier this year by El-Niño and other weather influences, but also by political unrest, especially in Africa. “The fact that the Union Fleurs trade union and Kenyan representatives of KFC managed to prevent the introduction of import duties on flowers has been of great importance. It would have been disastrous otherwise, especially in combination with the lower exchange rate of the British Pound after Brexit”, Brockhoff and Marcel Zandvliet of Dutch Flower Group reflect.
Dekker mentions that the uncertainties following the American elections are an additional challenge for the international trade.
Northern and southern European countries on the rise
Most of the European sales markets that Dutch plant and flower wholesalers distribute to, showed an increase in 2016.
Russia continued to lag behind and had to make room for Denmark in the top-10 halfway through the year. The Danish plant segment in particular, showed a strong increase (+23%, reaching € 54 million), leading to a 12.5% increase of the total export value to this Scandinavian country, reaching € 115 million up until November.
Southern European markets are showing more growth as well, with Spain on number 14 showing the most significant rise. Plant exports to the peninsula increased by 10% to a total of € 39 million and flower exports rose by 17% to a total of € 42 million.
The total plant and flower export value up until November has increased by 3.2%, reaching €5.3 billion. “With another month to go, a record turnover of € 5.7 billion is realistic”, says VGB.
Table: The table showing the total export values to the top-10 destinations for Dutch plant and flower sales up until November 2016, in euro, can be found here. (Source: Floridata)
