Management update: September

In this monthly update, our CFO, David van Mechelen, shares the management team's perspective on the past month and a preview of the coming month on behalf of Royal FloraHolland.

The summer holidays are behind us. For many, the holiday period offered a moment of rest and reflection. In the meantime, our cooperative continues to operate as usual, and we would like to share several developments from the past few weeks with you.

First of all, a positive update about our CEO, Pieter Bootsma. The many messages of concern and get-well wishes have done him good. Pieter has completed the first phase of intensive rehabilitation and made great strides towards his recovery. This was intensive and took a lot of energy. In the coming months, he will work from home, focusing mainly on his energy levels and building up his stamina. When the time is right, he looks forward to returning to work step by step.

Crop protection products: what is the situation?

Growers from all over the world want to supply top-quality flowers and plants without damage, diseases, or pests and with a good vase life. They work with an IPM plan: Integrated Pest Management to protect their products. Chemical agents are a last resort and are only used when no other option exists. However, there is still a lot of uncertainty surrounding this topic.

The use of crop protection products is under scrutiny. Facts, myths, and opinions are often intertwined in the public debate. This article, supported by three practical cases, explains the current situation regarding (chemical) crop protection within the European Union and parts of Africa. This concerns authorisation, the authorities, legislation, and the basic principles, so that everyone understands what steps are being taken in the various countries and why.

All growers aim to reduce use further. As a cooperative, we believe it is important to share this knowledge. We do this within our cooperative to our members (members' newsletter) and through news articles on our website. We also communicate this storyline to journalists, both from RFH and from “a voice in floriculture,” in which we work together with many sector parties on issues that affect our sector. This ensures everyone can form an opinion based on the correct context and facts.

Certification

Sustainability is an important priority within the floriculture sector. We see the phased transition to 100% certification according to FSI requirements as an essential step towards transparency based on the responsible cultivation of flowers and plants. That is why, after a long and intensive process involving extensive discussions with our members, growers and other stakeholders, it was decided in March 2024 that members and suppliers who offer, trade and settle flowers and plants via the Royal FloraHolland platform must be certified in accordance with the requirements of the Floriculture Sustainability Initiative (FSI basket of standards). This aligns with the needs of the Sierteeltversnellers, a group of progressive growers, and the FSI Accelerator Group, a group of large buyers committed to purchasing 100% certified products by 2027.

RFH is steadfast in this regard. In response, several members recently took the initiative to object to the obligation. As a cooperative with a wide variety of growers, it is essential to discuss this issue with each other. We had a pleasant and constructive discussion with the initiators, in which sustainability and the steps being taken are paramount for everyone.

Transformation of the Elsengebouw and Aalsmeer-Oost

We are currently busy with further preparations for the renovation of the Elsengebouw at our hub in Naaldwijk. Step by step, the building is being given a new future. We are now working with a specialist company to investigate how mechanisation can contribute to solutions for labour market shortages and cost control. This is a challenging process, but one that we are looking forward to with confidence.

In Aalsmeer Oost, too, the future is visibly being built. Construction of the Sering building started in June. We are investing heavily in sustainability here. This gas-free building, which is heated with heat pumps, aligns with our ambition to make our cooperative more sustainable. The first tenants – Rosa Plaza and VerdNatura – have already been announced. In addition, Fresco Flower will be moving into a new building currently under development: Ficus. And we anticipate news regarding further expansion in the near future. It is wonderful to see how this area develops into a future-proof cluster where we can meet our customers' needs and strengthen the Royal FloraHolland platform.

Update on 2026 tariffs and development of new rate systems

As in previous years, we are working closely with the Members' Council on developing the tariffs. The first proposals were shared in July and have since been refined into a draft. It is essential to achieve a structural net result of 2% from 2027 onwards so that RFH remains robustly financed. For 2026, we are taking the first step in this direction with a relatively limited rate adjustment, more or less in line with inflation and previous agreements. We expect to be able to communicate the indicative tariffs for 2026 for members at the end of September.

In addition to this adjustment, we are taking a broader look at the further development of member packs and tariffs for services such as logistics, resources and real estate. Care is crucial in this regard: we want to provide clear insight into the effects for all members, work with transparent calculation models and guard against an unbalanced distribution of costs and benefits. We are also investigating the sleeve, how new tariff systems can better align with the value that RFH brings to different types of suppliers and their needs, and how these can strengthen the connection with the cooperative.

We are carefully navigating this process with the Members' Council and the Supervisory Board. The Pricing & Portfolio team within Strategy & Transformation plays an essential role in this, both in terms of content, with its expertise in pricing and models, and in terms of process guidance for this complex project.

AI Lab

We are also making progress in the digital arena. With the launch of the RFH AI Lab, we are bringing together internal initiatives and knowledge related to artificial intelligence. The aim is to inspire and support employees in using new technology, including generative AI and tools such as Copilot. In this way, we want to increase the effectiveness of our cooperative.

David van Mechelen, CFO, on behalf of the Royal FloraHolland management team