Royal FloraHolland reports on 'exceptionally good year'

In 2021, 11.7 billion flowers and plants changed owners at the world's largest floral trade hub, 3 per cent more than in 2020. Royal FloraHolland's operating income was 15 per cent higher than in 2020, mainly due to an increase in product turnover as a result of higher prices. This contributed to a positive result after tax of € 6.5 million, whereas there was a loss of € 5.8 million in 2020. The good figures for 2021 are overshadowed by concerns about the future of the floriculture industry, partly due to the situation in Ukraine and the high energy prices.

Concerns about the future of the floriculture industry

After a great start in 2022, the demand for flowers and plants fell sharply at the end of February due to the situation in Ukraine. Energy prices were already high at the end of 2021. They rose to extreme heights from late February onwards. CEO Steven van Schilfgaarde: "There is a drop in demand, considerable uncertainty in the market and falling consumer confidence. The necessary energy transition cannot be achieved overnight, while high costs leave growers with little room to invest. The international position of the Dutch floriculture industry is at stake. Without government measures, I foresee lasting damage being caused to our sector".

Exceptional year

Looking back at 2021, it is safe to say that the international demand for flowers and plants remained at a high level in times of coronavirus. This is the main explanation for the good price development. CEO Steven van Schilfgaarde: "The year was also exceptional due to the heated discussions within the cooperative in the first six months about the pace of strategy implementation, the functionality of Floriday and environmental certification. Partly due to clear signals from the Members' Council and based on concerns in the market, we have very deliberately opted for a different approach in the roll-out of our strategy. I can honestly say that never in the history of our cooperative has so much structured dialogue taken place with and between our stakeholders as in the past year. We truly are a different cooperative and company now than we were at the beginning of 2021".

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Photo Courtesy of AIPH

Source: AIPH