Frequently asked questions about the new supply regulation30 March 2020
This Q&A is for growers, buyers and relations of Royal FloraHolland and is revised daily in response to new information.
- Why a new supply regulation?
- What does the new supply regulation look like?
- How will the numbers I am allowed to supply be calculated?
- Where can I find the numbers that apply to me?
- I do not yet have an account in Floriday. What should I do?
- I don't see any data in my Floriday Dashboard?
- Does the percentage shown in Floriday apply per clock or over all clocks?
- Do I have to create my EAB`s in Floriday?
- I have a new product / how do we deal with growers in a new product group? May I supply them as well?
- What is the difference for a member-supplier and supplier what can be supplied?
- Our nursery changed cultivation last year and had virtually no production. Now I do have production. How should I deal with this?
- In the past weeks/months my nursery has been expanded. As a result, we now have a different production than in 2019. What should I do now?
- In the numbers for 2019, has BVO, Eelde and the Rhein Maas Auction also been taken into account?
- May I complete a trolley?
- The numbers in Floriday are not correct in my opinion / I see different or no numbers. What should I do?
- I do not agree with the specified percentage of my product group
- Are the maximum quantities in the new supply regulation as a total or per location?
- What if I expand my business in 2020 (more ha)?
- Can the percentages be increased if there has been less throughput the previous day?
- Now that RFH regulates the maximum numbers, can I as a grower supply A2 or B trade again?
- Our company processes the trade of various growers. Can we gain insight into Floriday to see what the maximum supply per grower is?
- What does the excess policy entail?
- What costs / penalty will be charged if too much is brought in?
- Are we still dealing with the current throughput costs?
- Can't RFH decide to go to 3 auction days without waiting?
- Will auction clocks or locations be closed?
- How can our emergency measures continue to be sufficient for the future? Isn't support from external specialists desirable in this crisis?
- Is it true that the calculation rules for seasonal growers have changed?
- How do I know when the percentages will be updated and I will therefore be able to supply more or less?
- What will be done with my products if I oversupply?
- The pricing of my product is very good. Can the percentage go up?
- Have the differences in the days of the week been taken into account in the calculation of the numbers?
- How is the FPC involved in the product percentages?
- Is it true that a daily product update at FPC level is sent to growers?
- Will customer service also be open and reachable this weekend?
- I may (rightly) supply less and put more batches on a trolley. Can RFH temporarily waive the batch levy?
- What is growers' general perception of supply regulation?
- What do growers think of the commitment and involvement of RFH?
- Are self producing batches allowed on the clock?
- Is it true that non-members are not allowed to use the RFH member supply numbers to access the RFH platform?
- Is RFH going to increase the membership fee due to reduced revenues?
- Is RFH, just like the Rhein Maas Auction, thinking about fewer auction days?
- Does the corona crisis affect Royal FloraHolland's decision to make environmental registration and certification compulsory for all suppliers on the marketplace?
- I'm a seasonal grower. How can I see how much I'll be able to feed now?
- My question is not here?
At the beginning of this week, all growers were called upon to temporarily supply fewer products as an emergency measure. Since then, we have been monitoring on a daily basis which and how many flowers and plants can be supplied in order to keep the turnaround as limited as possible and to restore price formation. Because Royal FloraHolland assumes that trade will not recover to normal levels in the coming months, a new supply regulation has been drawn up that can evolve in line with demand developments.
For each product group, the percentage of the daily volume that you are allowed to supply will be determined on a daily basis. For a product group in a recovering market, more can be supplied in this way than for a product group where demand has recovered even less. With this we introduce a regulation that we can bridge in the coming months, to a situation in which the market fully recovers. This supply regulation is based on solidarity between members: every grower receives a fair share of the temporarily lower market demand.
If you are a member, the following applies: You may bring in a percentage per day of the trade you brought in during 2019. The rule applies to 'Grower at account level' (= relationship level = highest level). A grower may supply 50% of what a member grower is allowed to supply.
When applying this rule, the following steps are taken:
- Step 1: Determine numbers over 2019 total per product group
- Step 2: Application of weighting percentage: clock 100% and direct 30%
- Step 3: Divide the outcome of the clock by the number of trading days (clock and/or direct) of the grower in 2019.
- Step 4: Auctioneers determine the supply percentage per day (based on market situation), per product group, as an example: 20%.
- Step 5: The outcome number of items that can be auctioned that day by a member grower. If supplier: divide result by 2
Application of new supply regulation rules:
- Step 1: 500,000 clock, 1,000,000 direct
- Step 2: 100% of 500,000 + 30% of 1,000,000 = 800,000 stems total
- Step 3: 800,000 / 200 trading days = 4,000 stems per auction day
- Step 4: For the gerbera product group, after consultation with the auctioneers, we set a supply regulation percentage of 20%.
- Step 5: A member grower may supply 20% of 4,000 = 800 stems on the clock tomorrow.
- Step 6: A member grower may supply 800/2 = 400 stems.
In your Floriday dashboard you can see how much you can feed. That looks like this:
The Floriday support team is ready to show you the way in Floriday. The support team can be reached via chat, email (email@example.com) and by phone at 0174-352070. Login details can be created via: https://www.floriday.io/en.
The Floriday support team is ready to show you the way in Floriday. The support team can be reached via chat, email (firstname.lastname@example.org) and by phone on 0174-352070.
The percentage applies to all clocks. However, you may divide the calculated maximum supply of pieces yourself over the desired clocks/product groups.
No, you do not have to. You can continue to create your EAB's as you previously did. However, you can see the insight of the maximum supply of pieces.
I have a new product / how do we deal with growers in a new product group? May I supply them as well?
Yes, you may supply a new product group. Your maximum supply is calculated and made clear on Floriday. Per product group the maximum percentage has been determined. You can and may also deliver a new product, as long as you do not exceed the maximum supply. If you have not supplied via the clock or directly in 2019, you can contact the auctioneer to make custom agreements, which will then be approved by the ODM team manager and recorded in your account in Floriday.
We use the same method of calculation, but the result of the calculation (what may be auctioned) is 50% less for a (non-member) supplier.
Our nursery changed cultivation last year and had virtually no production. Now I do have production. How should I deal with this?
This is an exception to the rule. For these specific questions, please contact your auctioneer or account manager. They will, in consultation with you, come to a custom-made agreement in which the maximum supply of units will be stated. The team manager of Operations Deal making (auctioning) will check this customized agreement on the basis of established frameworks. After approval, the adjustment will be implemented in Floriday.
In the past weeks/months my nursery has been expanded. As a result, we now have a different production than in 2019. What should I do now?
This is an exception to the rule. For these specific questions, please contact your auctioneer or account manager. They will, in consultation with you, come to a customized agreement that includes the maximum number of units to be supplied. The Team manager of Operations Deal making (auctioning) will check this customized agreement on the basis of established frameworks. After approval, the adjustment will be implemented in Floriday.
The maximum number of units for 2019 has been determined by the clock supply and direct trade that took place at Naaldwijk, Rijnsburg and Aalsmeer. BVO, Eelde and Veiling Rhein Maas are not taken into account.
If a supplier supplies a maximum of 1 trolley, this trolley may be loaded. If a supplier supplies more than 1 trolley, then the maximum number of trolleys is subject to the supply regulation. We allow this in order to accommodate the relatively smaller growers in the supply costs. However, a grower may not apply this on a daily basis at every location and they will have to make a choice per location. So 3 full carts at 3 locations is not allowed.
The numbers in Floriday are not correct in my opinion / I see different or no numbers. What should I do?
For these specific questions you can contact your auctioneer or account manager. They will, in consultation with you, come to a customized agreement that includes the maximum number of units to be supplied. The Team manager of Operations Deal making (auctioning) will check this customized agreement on the basis of established frameworks. After approval, the adjustment will be implemented in Floriday. Don't see any numbers? Please contact the Floriday support team. The support team can be reached via chat, email (email@example.com) and by phone on 0174-352070.
Contact the auctioneer of the product in question.
The maximum numbers of units apply as a total, but are subdivided by product group and not by location. We would still like to give growers the space to do business, as long as this does not lead to supply excesses.
This is an exception to the rule. For these specific questions, please contact the auctioneer or account manager. They will come to a custom-made agreement in which the maximum supply will be stated. The Team manager of Operations Deal making (auctioning) will then have to approve these customized agreements and record them in the grower's account in Floriday.
The auctioneers assess the supply percentages per product group on a daily basis. They do this on the basis of, among other things, the turn-around, the sounds from the market and the pricing. The percentages may vary on a daily basis if the market demands it.
No. A2 and B quality is not permitted in this supply regulation. In addition, over-auctioning is not yet permitted.
Our company processes the trade of various growers. Can we gain insight into Floriday to see what the maximum supply per grower is?
The insight into the maximum supply in Floriday is at grower level. RFH has no knowledge of all the different partnerships that exist and does not share company information with third parties from a privacy point of view. You must contact your growers/relations to ask for the maximum supply.
The excess policy prevents supply excesses from occurring on the clock. Growers who offer considerable quantities on the clock and did not do so on the day(s) before, are covered by the excess policy. The auctioneers then assess whether these quantities are acceptable on the clock or whether this trade is being relocated. If in doubt, we advise growers to contact the auctioneer of the product.
The costs for processing this destruction will be charged to the grower at a rate of 0.53 per cask.
No, the throughput costs have been adjusted. We see that 85% of
the throughput currently consists of A1 trade. And so far A1 trade
has not been charged to the grower.
If a grower brings in more merchandise than the maximum allowed, the grower's entire supply will be removed from the supply and the costs of 0.53 per barrel will be passed on to the grower. If a grower does comply with the maximum supply, but the product continues to run on the clock, these costs will not yet be charged. However, this measure can be applied in a tighter supply regulation, but this will be communicated. The reason is that RFH is trying to reduce costs in the chain and also wants to apply sanctions when the maximum supply is exceeded.
Royal FloraHolland has every conceivable scenario in mind. Fewer days auctioning is not yet an option. However, we will continue to monitor developments and may adopt this measure in the near future. At the moment, this is not yet the case.
Royal FloraHolland has every conceivable scenario in mind. There is currently no question of closing the location. However, due to the decline in volumes, auction clocks are being merged.
How can our emergency measures continue to be sufficient for the future? Isn't support from external specialists desirable in this crisis?
All Royal FloraHolland departments are working together to make the emergency measures future-proof. In this way, we keep a close eye on daily internal and external developments. External specialists are called in if necessary for certain issues.
Yes, that's correct. As of March 25th, we have taken more account of the products of seasonal growers. The calculation takes into account the start and end dates of the relevant seasonal products and the auction days on which these products were offered in 2019. This creates a more realistic picture of the maximum quantities that can be supplied and gives (seasonal) growers more space to supply.
How do I know when the percentages will be updated and I will therefore be able to supply more or less?
If the percentage is adjusted by the auctioneer, you will receive a notification (message) from Floriday. We strive to adjust the percentages before 10.00 am if necessary.
If you exceed the maximum quantities, the auctioneer will remove your entire supply. This supply will unfortunately be destroyed. You no longer have the choice to pick up this trade from the location. If your trade has been removed from the offer by the auctioneer, he/she will contact you.
A logical question. Apparently the market needs this product and appreciates it through good pricing. Please contact the auctioneer to check the possibilities.
Have the differences in the days of the week been taken into account in the calculation of the numbers?
The differences in the days of the week have not been taken into account. A Monday is different from a Thursday. The auctioneer can determine per day whether the market can handle more or less for a product group by adjusting the percentage in Floriday.
The FPC is an important advisory body where coordination on adjustments or choices is very relevant. In collaboration, we can make daily adjustments and determine the product percentages. This collaboration currently differs per FPC, but will be intensified in the coming days.
RFH chooses to regulate the supply by through regulation at the request of its members. This is primarily to improve pricing and to reduce product destruction and unnecessarily high costs in the sector. There is an enormous supply for the coming weeks/months, but considerably less demand. Supply regulation creates a new balance between supply and demand and fair market opportunities for every grower.
That is correct. Every day, the product manager sends an email containing information about pricing, supply and throughput percentages at FPC level. In addition, this email can be used for targeted communication and specific topics. Do you not yet receive this product update? Please contact the product manager or customer service.
Yes, you can reach Customer Service this weekend on 088 789 89 89 and Customer Service will be open from 9 a.m. to 5 p.m. next weekend.
I may (rightly) supply less and put more batches on a trolley. Can RFH temporarily waive the batch levy?
The policy on the batch levy remains unchanged for the time being.
The perception is positively critical. Positive, because growers understand that regulation is necessary to achieve a balance between supply and demand and that RFH reacts quickly to this. Critical, because growers are also allowed to supply considerably less on the clock and the revenue must be evenly distributed. Every day questions are asked and concerns are expressed, which the RFH team gets to work with.
The growers radiate the same image as the rest of the Netherlands: together we get through this. And TOGETHER with growers, buyers and RFH is currently taking good (and necessary) steps. There is consultation with the Crisis Management Team, the Members' Council, the FPCs and specific departments. On behalf of growers, a big compliment is regularly given to all auction staff and specifically to the auctioneers. They work long days, but growers indicate that the auctioneer is almost always available. A compliment that the MT RFH certainly supports!
No. Self producing batches are not allowed to feed on the clock, unless this has been laid down in a contract in the past and the production originates from members.
Is it true that non-members are not allowed to use the RFH member supply numbers to access the RFH platform?
Yes, this is not allowed and RFH does not allow this. Supply numbers are issued on a personal basis and are not transferable or lendable to third parties. This disrupts the marketplace and supply regulation.
No, this is not an issue.
RFH is thinking about all possible scenarios. The scenario of fewer auction days has already been worked out by RFH, but this emergency measure is not yet under consideration. The current supply regulation is currently doing its job and RFH is following developments closely.
Does the corona crisis affect Royal FloraHolland's decision to make environmental registration and certification compulsory for all suppliers on the marketplace?
Like you, we are concerned about the major consequences of the
corona crisis for our sector. Royal FloraHolland is doing
everything it can to support growers and buyers in these difficult
At the moment, it is still too early to make any statements about the possible impact of the corona crisis on the introduction of environmental registration and certification. We are of course monitoring the situation in the sector and its impact on the business operations of our members and other suppliers. When there is more clarity on this subject, we will inform all our members and suppliers.
Are you a seasonal grower and would you like to know what you can feed per day during your season? On your dashboard in Floriday you can select the desired date to view the quantities per day. The auctioneer will adjust the percentages that can be supplied per day. It is therefore possible that these numbers still change as soon as the auctioneer adjusts the percentage. Do you disagree with the numbers or would you like to submit earlier this year? Then contact your auctioneer.
Please contact customer service on +31 (0)88 789 89 89. You can reach Customer Service on weekdays between 5:30 a.m. and 5:00 p.m. (on Fridays until 4:00 p.m.). This Q&A will be reviewed daily.
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