Supply regulation Gerbera, Pot Rose and Pot Chrysanthemum in force for supply from 4th November03 November 2020
From Wednesday 4th November 2020, supply regulation will be temporarily in force for clock supply. The Crisis Management Team (CMT) of Royal FloraHolland came to this decision this Monday, at the proposal of the Operations Dealmaking department and after consultation with the FPC chairmen. Based on the volumes for 2019, the supply regulation provides clarity about the maximum numbers to be supplied for the clock. The supply regulations only apply to the three export locations (Aalsmeer, Naaldwijk and Rijnsburg) and not to the Eelde location.
Update 6 November
This week the supply regulation was put in place for two product groups: Gerbera, Potted Rose and Potted Chrysanthemum. The supply regulation for Potted Rose and Potted Chrysanthemum has already been terminated. The disturbing turnaround figures from last week and the beginning of this week have quickly recovered, as a result of which regulation of the clock supply is no longer necessary at the moment. In the Gerbera product group, regulation will continue. The turnaround rate there has already fallen slightly. The most up-to-date information on supply regulation can be found in the Floriday dashboard.
Why a new supply regulation?
The second corona wave has led to stricter measures in neighbouring countries (such as France, Belgium and Germany). As a result, we have noticed that demand is decreasing and the supply of flowers and plants on the clock is increasing. The unsold rate for some products has already increased and is expected to increase further. In order to keep this as limited as possible, a supply regulation for the Gerbera, Potted Chrysanthemum and Potted Rose product groups will come into force on Wednesday 4th November, which can shift with the development of demand.
Maximum supply available in Floriday
From 10.00 a.m. onwards, the suppliers concerned will find in Floriday a specific overview of what can be supplied on the next auction day. This overview can be found on the Floriday dashboard.
- Do you
already have a Floriday account?
Log in via www.floriday.io and view your maximum supply on the dashboard. Tomorrow (November 3rd after 10.00 a.m. ) you will find the new regulations on the dashboard.
have a Floriday account yet?
Create an account at www.floriday.io/en/sign-up (via MijnRFH you can easily create an account) and log in with your Floriday login details. View your maximum supply on the dashboard.
What does supply regulation look like?
On the basis of
developments in the market, intensive consultation takes place
between the auctioneers and the FPC chairmen. For each product
group, the percentage of the daily volume that the grower is
allowed to supply is determined on a daily basis. For a product
group with declining market demand, this means that less clock
supply can be controlled than for a product group where demand
remains at the same level. With this we introduce a regulation that
we can bridge in the coming period, on the way to a situation in
which the market recovers. A decision tree has been developed to
make a decision about this.
Important points of departure in this new supply regulation (starting for the supply of Gerbera, Potted Rose and Potted Chrysanthemum on Wednesday 4th November):
- Each supplier has a maximum daily volume per product group based on its total volume in 2019 (number of units in direct and clock).
- The maximum daily volume per product group includes both the direct volume and the clock volume. The clock volume counts for 100% and the direct volume for 30%.
- The number of trading days (clock and direct) is also taken into account in determining the maximum daily volume. This gives seasonal growers a proportional daily volume.
- The auctioneer determines per day, per product group, the maximum percentage that growers are allowed to supply from their daily volume for the clock. In this way we limit the unsold products. The grower may round up his maximum supply to a whole trolley so that full trolleys can always be supplied.
- Only A1 quality is is permitted. Supplies of A2 and B quality are not traded, not even after a euro marking placed by the Quality department. In the case of a euro remark, the supply is removed from the offer and the supplier is given the choice of collecting the lot or having it destroyed at cost.
- If growers supply more than permitted, the products will be removed from the supply. The entire supply will be destroyed at a fee.
Advantage and protection for member suppliers
For non-member suppliers, the same calculation is used as was applied earlier this spring to arrive at the maximum daily volume, with an additional reduction of 50%. This underlines the benefits of membership. All non-self-growing suppliers who bring trade for the clock that does not originate from a member of Royal FloraHolland will be banned until further notice. This measure gives members protection against dumping on the clock.
- Do you have questions about the functionality of Floriday? Please contact the Floriday Support Team via firstname.lastname@example.org or via 0174- 352070. Do you have questions about the realization of your maximum supply? Please contact the auctioneer.
- If you have any other questions, please contact your Account Manager or Customer Service via +31 (0)88 - 789 89 89. The Customer Service can also be reached via WhatsApp (+31 (0)88-789 89 89) and email email@example.com .
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