The Dutch export of flowers and plants to Poland is experiencing high rates of growth. According to Martijn Homan from the Agricultural Council, this should give people in the Netherlands food for thought. ‘More promotion of flowers in Poland could accelerate this growth. Poland is catching up very quickly.’
Is the Polish economy booming?
‘Yes, the Polish economy is definitely booming. Since 2002, the Polish economy’s percentage growth has been on average 2% higher than the EU average. Poland is one of the few countries that hasn’t been through an economic recession in recent years.’
How do you explain this?
‘That has to do with a number of factors. Poland still has its own currency, the zloty, so they still pursue their own monetary policy; this makes a difference to exports, for example. Furthermore, there has been a substantial growth in productivity, employment, and added value. And exports are very strong, growing, and dynamic, just as in the Netherlands. Poland had exported approximately EUR 5 billion in horticultural goods before they joined the EU in 2004; this has now increased to almost EUR 25 billion. Exports are an important pillar that prevented Poland from going under.’
Does Poland get a lot of funding from the EU?
‘Yes, there is a vast influx of EU funds to Poland, which encourages spending as well as the growth of the economy. These funds are attractive to foreign investors and encourage increased productivity. Another factor is the Polish baby boom of the 1980s. This means that there is a lot of available labour. They have to keep the downside in mind though; a lot of people will be retiring in a couple of years. And don’t forget the large domestic market; Poland has a population of 38.5 million people. These factors combine to contribute to the growth of the Polish economy.’
What are the signs that the Polish economy is booming?
‘There is a growing demand for quality, niche products, and products with more added value, which is clearly visible in the food industry, for instance. Polish people love shopping. There is a strong urge to get to the same level of prosperity as the West, which reflects in the spending patterns. Polish people are spending more and more money on higher-end goods of which flowers and plants are a good example.’
Tell me more.
‘People in Poland are spending increasing amounts on flowers and plants. Traditional moments, such as name days and 1 November (All Hallows), have historically been important for the flower industry. Now there is also an increasing tendency for the Polish people to buy flowers and plants for themselves or as presents for other people. Because the average income is higher in urban areas, this development is more noticeable in towns than it is in rural areas, which makes sense. So, for instance, tulips are very popular in the spring. The presentation could be improved though. Florists in the Netherlands really know how to turn flowers into a great gift, a skill that has not been developed yet in Poland; we could do with a Flower Council here.’
No more artificial flowers in Poland?
‘The average wages in Poland are still low. If people want a bit of colour, they look for alternatives. Personally, I don’t think the use of artificial flowers is over the top. When I see them, it’s often close to a cemetery, where you will find several flower stalls.’
The export of flowers and plants from the Netherlands to Poland is increasing. Does that include re-export to Russia?
‘Yes, I think so, but I’m not sure. According to the Dutch Association of Wholesalers in Floriculture Products (VGB), quite a few Polish importers buy directly from Dutch nurseries. This might cancel out some of the re-export. There is no data available on either of these.’
Is Poland politically stable?
‘The current Polish Government consists of one party; in that respect, the political scene is very stable. Poland is a member of the European Union, which offers a high degree of stability with a common set of rules. Poland fills in their own details, so not all new legislation results in an improvement of the investment climate. They have introduced a bank tax and a retail tax, for example. The latter has had an effect on flower sales, an increasing part of which goes via retail channels. Someone has to pay this tax. The consumer might pay a higher price, the retailer might get a lower margin, or the supplier might ask a lower price; probably a combination of all of the above.’
Is there an increased interest for Dutch floriculture in Poland?
‘A few Dutch growers are active in Poland, and a lot of questions are being asked about the Polish market and the development of the flower and plant trade. One specific example is the upcoming Flower Expo Poland, which is being organised by the Dutch Floral Agency (BureauSierteelt.nl) together with a Polish partner and will take place at the end of August 2016. This event links with another event, “Green is Life”, which focuses on perennials, shrubs, and trees. About twenty Dutch companies will take part in Green is Life and Flower Expo. A trade mission for ten companies will be organised alongside the event. In total, fifty companies will come to Poland, which reflects the interest of Dutch companies in the Polish market.’
How is production in Poland?
‘Poland itself is not a big player in flower production. Several experts report that there is a small amount of growth, but there are no recent figures to prove this. That’s why we asked the university to draw up a report about the Polish production.’
Will consumers be visiting the fairs, or are they only for professionals?
‘In Poland, these events are often open to the public on the third day. That’s very important. I can understand that it’s not interesting for foreign participants, but it contributes to the development of the domestic market. Exhibitors can impress visitors with their new varieties and innovations, making it part of the collective promotion of flowers and plants to the Polish public. It’s important to open to the public to stimulate demand. Where else can the Polish people see so many flowers in one go?’
Can the Dutch do something about flower promotion in Poland?
‘The Netherlands tend to focus their marketing campaign in flowers and plants on core countries such as France, Germany, the United Kingdom, and the Netherlands itself. Poland, however, has huge growth rates and has great potential, with a market of 38.5 million consumers. In order to make the most of this, it would be wise to aim for additional marketing of flowers and plants in Poland. Maybe something the sector should consider?’
Here you can find more about the Flower Expo Poland and Bureausierteelt.nl.
