The individual grower minimum prices: 2 growers share their experience

From 1 January 2024, collective minimum prices will expire and individual grower minimum prices will be the standard. How does setting your own minimum price work in the daily business and what benefits does it have? We ask 2 growers about their experiences.

Nursery Mediaverdi participated in the pilot from FPC Carnation in August, Holstein Flowers has already had several years of experience in setting its own minimum price. Read their experiences below.

Johan Buis (nursery Mediaverdi): vary with the price

Mediaverdi is a family business that has been growing snowballs and carnations for five generations. Located in Aalsmeer, the nursery has access to 3400 m2 of greenhouse and 1 hectare
outdoors, for growing Forced shrubs.

Mediaverdi took part in the pilot for setting an individual grower minimum price from FPC Carnation. "In the past, I never did anything with a minimum price, simply because I didn't think
it was necessary," says owner Johan Buis. He runs the business together with his son and wife, and his father also still helps out every day.

"The collective minimum price for carnations was 4 cents, but fortunately we were never on that edge of the market. I set the price seriously higher during the pilot, ranging from 8 to 20
cents, depending on variety and quality. Again, you shouldn't set the price extremely high, otherwise you run the risk of the product being withdrawn. I think one disadvantage is that the minimum prices in Floriday's catalogue are not remembered. So you have to enter them over and over again. However, I have received confirmation that this will be possible from mid-December. That works more pleasantly."

Rigorous selection

Withdrawn products fortunately never actually happens to Johan. "We are at the top end of the market and are strict in our selection. We supply more qualities than you would expect on
average from a company like ours. Only during corona snowballs were withdrawn once in a while, but then that was also quickly restored."

During the pilot, the grower did experience once that a lot ended up at 8 cents, the minimum price, on the auction clock. The auctioneer made another attempt and then they went away for 10 cents.

Vary the price

Does Johan have any tips for other growers? "You should vary the minimum prices for different varieties andqualities. For carnations, for example, you have varieties with a lot of fluff
or little fluff and new introductions, for example. Those have a higher cost price because they involve more labour. Variation in price also keeps buyers on their toes."

Leo van Holstein (Holstein Flowers): buyers' habituation

Holstein Flowers is one of the largest gerbera growers in the world, with 11 hectares spread over two locations. With more than 140 varieties, the De Lier-based family business offers a
particularly wide range of varieties.

Finding balance

Holstein Flowers has been working with an individual minimum price for years, says Leo van Holstein. "The collective minimum price was set at 4 cents at the time, but we couldn't cope with that. It is therefore positive that we could set our own price. After all, we also grow exclusive varieties, for which we want a higher price. In setting your minimum price, you do have to find a balance, because if you set it too high, you price yourself out of the market again."

Flexibility and freedom

"It has also led to a certain habituation among buyers, we notice. They know what the minimum price is. But ultimately it will always be a market of supply and demand: if there is a lot
of supply, the price goes down. That is why it is nice that you can always adapt your price yourself and manoeuvre with it. In the winter period we set it a bit higher and in spring, when there is more supply, we set the price a bit lower. It's good that we can be flexible and have the freedom in that."

Does Leo have any tips for other growers?
"Dare to put your price down, and don't be afraid that your product won't be bought. It will always be a market of supply and demand, but if you think you have a good product, it's okay to make that clear with a slightly higher minimum price."

More information about the minimum prices? Read it all here.