The true value of the floriculture sector
February 21, 2024
This is a column by Public Affairs manager Stefanie Miltenburg. The Public Affairs department represents the interests of Royal FloraHolland, its members and the floriculture sector in society, the media and politics.
Our sector was in the spotlight again recently. From unexpected quarters came strong statements from the Dutch Bank director Klaas Knot. He spoke of our sector as one that costs society more than it produces. Despite a constructive discussion that quickly followed with Glastuinbouw Nederland, much harm had already been done. Newspaper De Volkskrant promptly ran the headline that 'according to experts' a number of sectors would do better to disappear from the Netherlands. This no longer only involved glasshouse horticulture, but also meat processing companies and distribution centers.
Don't just look at production
Refreshing was the report 'The importance of Dutch services in global goods production', which the CPB Netherlands Bureau for Economic Policy Analysis published earlier this month. This is about the earning power of the Netherlands. They indicate that this is often done only by looking at the production of sectors or the export value of products. We too often do that. We claim that the floriculture sector generates some 10 billion billion in export value for the economy annually. In doing so, we look primarily at the sales figures that that volume of product has generated.
CPB argues that when asked the question "How does the Netherlands earn its income? often talk about the 'what' such as exporting flowers and not the 'how'. Then we forget the value delivered by managing a complex cross-border logistics process! Including these activities or services and not just looking at production creates a much more complete picture of the total value of our sector.
Adding up all the benefits: much higher added value
Back to Klaas Knot for a moment. In his interview with Buitenhof, he called for the Netherlands to focus on those sectors that provide the most added value to the Dutch economy. After all, in the long run, that will generate the tax revenue that is so badly needed to maintain our level of social services.
It is up to us to redo the calculations in the manner of the CPB Netherlands Bureau for Economic Policy Analysis. To the production value of floriculture products we must add the benefits the Netherlands derives from all the services that are part of our global network. The services that we as a marketplace provide to the trade in flowers and plants and in which we are unique worldwide. Add to that all the activities of breeders, improvers, suppliers, knowledge suppliers and developers, and a much higher added value will be the result. That number will certainly appeal to the director of the Dutch Bank as well.
Our sector was in the spotlight again recently. From unexpected quarters came strong statements from the Dutch Bank director Klaas Knot. He spoke of our sector as one that costs society more than it produces. Despite a constructive discussion that quickly followed with Glastuinbouw Nederland, much harm had already been done. Newspaper De Volkskrant promptly ran the headline that 'according to experts' a number of sectors would do better to disappear from the Netherlands. This no longer only involved glasshouse horticulture, but also meat processing companies and distribution centers.
Don't just look at production
Refreshing was the report 'The importance of Dutch services in global goods production', which the CPB Netherlands Bureau for Economic Policy Analysis published earlier this month. This is about the earning power of the Netherlands. They indicate that this is often done only by looking at the production of sectors or the export value of products. We too often do that. We claim that the floriculture sector generates some 10 billion billion in export value for the economy annually. In doing so, we look primarily at the sales figures that that volume of product has generated.
CPB argues that when asked the question "How does the Netherlands earn its income? often talk about the 'what' such as exporting flowers and not the 'how'. Then we forget the value delivered by managing a complex cross-border logistics process! Including these activities or services and not just looking at production creates a much more complete picture of the total value of our sector.
Adding up all the benefits: much higher added value
Back to Klaas Knot for a moment. In his interview with Buitenhof, he called for the Netherlands to focus on those sectors that provide the most added value to the Dutch economy. After all, in the long run, that will generate the tax revenue that is so badly needed to maintain our level of social services.
It is up to us to redo the calculations in the manner of the CPB Netherlands Bureau for Economic Policy Analysis. To the production value of floriculture products we must add the benefits the Netherlands derives from all the services that are part of our global network. The services that we as a marketplace provide to the trade in flowers and plants and in which we are unique worldwide. Add to that all the activities of breeders, improvers, suppliers, knowledge suppliers and developers, and a much higher added value will be the result. That number will certainly appeal to the director of the Dutch Bank as well.
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