Good spring weather and larger product sees garden plant revenues up 10% says Royal FloraHolland

Royal FloraHolland says sales revenue for March (27 February to 26 March) has matched 2016 despite a decline in exports to the UK.

Floridata figures for February show export of flowers and plants grew by 7%, with the export of cut flowers increasing by 9% and that of houseplants by 2%.  Sales to the UK however came under pressure from Brexit and Mother's Day falling outside February and decreased by 13%.

In March, FloraHolland sales of cut flowers declined by 2%. The supply was 6% lower and the average price 7% higher than last year. Bucking the trend were Lisianthus, Freesia and Alstroemeria, which were supplied in much greater quantities. Roses performed well with an average price 15% higher than last year's.

Houseplant revenue was up 2%, with fewer items supplied. The average price was 6% higher than last year. Anthurium sales increased by 22%, while pot narcissus fell 22%. Green plants and spring seasonal products like Primula, Campanula and Hydrangea realised higher prices compared with last year.

Garden plant revenue increased by 10%. The supply declined by 2%, while the average price rose by 12%. The increase in revenue was caused by good spring weather and by the increasing supply of heavier products, supplied in bigger pots, which automatically leads to a higher price.

The most striking result among garden plants was a 16% increase in supply of Primula and an average price that was 18% higher than last year.

In March, International Women's Day and Mother's Day in the UK produced so much demand that the same level of revenue was realised this year as last year at FloraHolland.  In particular, the revenue around International Women's Day was high, with strong demand from Russia.

Last year, International Women's Day, Mother's Day in the UK and Easter all fell in period 3. This year, Mother's Day in the UK and Easter are being celebrated three weeks later, which means the sales peak for Easter falls outside period 3.

In cumulative terms, revenues increased 0.5%, achieved by 6.5% lower supply and an average price lying 7% above last year.

The share of direct trade increased. Among cut flowers, the proportion approached 40% with a growth of 2%-points. More and more cut flowers are being traded via direct channels, with the high-volume products like tulip, chrysanthemum and lily leading the way. Roses are trailing with a revenue of 34%, but that share is also increasing.

Among houseplants, the proportion grew by 2 percentage points to 78%. There is an evident trend of more being sold via direct channels for all products. Among garden plants the increase was just 1 percentage point to 68%. Here, too, more and more products are being sold via direct channels, especially now that the supply of garden plants is increasing.


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