No further roll-out of Central Auctioning of flowers in its current form

In Central Auctioning, the auction clocks are combined per product group across different locations. In recent years, Royal FloraHolland has gained valuable experience with this method, which is aimed at bringing supply and demand together more efficiently, in collaboration with growers and buyers. Starting with the first central flower clock (C06) in 2022, and after merging all rose clocks in 2023, all plant clocks were transferred to Central Auctioning in 2024. After that, the pause button was pressed for the further roll-out of other flower clocks. Together with growers and buyers, we are working on a new vision and design for Central Auctioning based on practical experience.

Interview with Bloemisterij
Thomas Bugel, CCO Grower Value Management, recently gave an interview to Bloemisterij (trade journal) about the future of Central Auctioning. In it, he explains more about the effects Royal FloraHolland is seeing in practice, the decision not to continue with the current format for flowers, and the new vision for the future. You can read the article here (in Dutch).

Careful transition
Every step in the implementation of Central Auctioning has been carefully prepared, with continuous evaluation and optimisation in consultation with growers and buyers before further expansion took place. This approach will continue to guide us in the future, precisely because Royal FloraHolland does not consider the current form of Central Auctioning to be the final solution. In its current form, Royal FloraHolland still sees various side effects that require attention before Central Auctioning can be introduced on all flower clocks. Therefore following the introduction of Central Auctioning for roses, the further roll-out for flowers has been put on hold.

Current form not optimal
Feedback from growers and buyers, combined with our own analyses, has shown the unintended side effects in the current form of Central Auctioning. At present, the central clocks are not yet delivering all the benefits that Royal FloraHolland had envisaged. There is an impact on the efficiency of our logistics operation and there is still a price difference between the hubs. The latter is because, in its current form, we are not yet auctioning completely location-independently.

This has been discussed recently during member sessions and buyer platforms. No new central clocks will be introduced for flowers until the new design of Central Auctioning is clear. Royal FloraHolland has decided not to implement Central Auctioning in its current form on other flower clocks for the time being. The current central clocks will remain in place in the meantime.

Various adjustments made
In practice, Royal FloraHolland auctions the supply at Naaldwijk, Rijnsburg and Aalsmeer in quick succession on the central clocks. This actually leads to three pricing moments, even though the location order is randomly drawn each day. Buyers can also still see where the supply is located. However, the ultimate goal has always been a completely location-independent auction.

Royal FloraHolland has made various adjustments to the current form of Central Auctioning. We have now implemented multi-transaction auctioning and shorter break times for all central and non-central clocks, which has shortened auction times. This was in response to feedback from buyers that auctions on central clocks were taking longer. Royal FloraHolland has learned a great deal from the Central Auctioning of roses as a major product group. We are now incorporating all the data, knowledge and feedback into various future scenarios for Central Auctioning. It has become clear what needs to change in our approach.

Continuing to work on a vision for the future
The primary focus is on strengthening the clock for all product groups and the various types of growers and buyers at the hubs, as well as offering predictable and reliable logistics services, which will be included in the design of a new vision for the future.

This vision for the future will be developed in collaboration with growers and buyers on our platform. Royal FloraHolland is working on the ultimate form of Central Auctioning. To this end, Royal FloraHolland will conduct a number of experiments in 2025 to determine the most appropriate vision for the future of Central Auctioning. The new design for Central Auctioning must not result in any loss of efficiency in the logistics process or differences in pricing per hub. Exactly what this will look like is not yet clear.

More information?
If you would like to know more about Central Auctioning, please contact the Customer Contact Centre or your account manager.