Management column: Strong together – the power of the clock

Recently, I spoke with many of you again about the value and future of our sector. This took place during the Trade Fair in Aalsmeer, as well as during the member sessions, which are held in Kenya, Ethiopia, and the Netherlands. A recurring theme is the power of the clock. Questions such as: Why do you communicate more about Floriday than about the clock? Is the clock still important to RFH?

The simple answer is yes. Our clock is the basis of our cooperative existence and is unique. So we should not take it for granted. The clock, the auctioning, the bidding, what we do here on this scale is exceptional. We can be proud of that. In all honesty, we do communicate more about Floriday than about the clock. This is primarily due to the numerous developments and new requirements that are emerging in this area. Floriday continues to evolve because our sector is constantly changing. New requirements arise, and RFH responds to them. This allows us to continue to collaborate in a future-oriented and efficient manner.

The clock is strong together

I have been working in the floriculture sector at RFH for more than seven years. During that time, I have often seen how brilliant the auction system is. Worldwide, it is even known as “Dutch auctioning”, famous for its transparent pricing and efficiency. The price goes from high to low, which protects growers from a “race to the bottom”. For more than 100 years, the clock has been at the heart of our sector, trading around €2 billion worth of flowers and plants annually.

The clock fits perfectly with the cooperative idea: strong together. The clock and the cooperative model reinforce each other. We offer a broad and deep range on the auction clock. Buyers have a lot of choice, and it is efficient for growers to supply their flowers and plants. The larger the auction, the more efficient the system. This is good for pricing and for efficient logistics.

An attractive clock

The clock is an integral part of our RFH strategy and will continue to be so. Direct trade is also essential. This channel has experienced significant growth in recent years. Each channel has its own advantages and disadvantages, and users consider these factors when choosing a channel. It is up to RFH to keep the clock attractive, and it is up to the growers to work together to keep the clock strong. The more supply there is via the clock, the more powerful the system and the better the pricing will be. An efficient system is also attractive to buyers. Provided, of course, that RFH continues to develop the appropriate services around it, that goes without saying.

Auctioning is a platform

At RFH, we talk about our platform strategy. It is essential to emphasise and reiterate that RFH has always had a platform, a platform avant la lettre, in the form of auctioning. Only then was it referred to as The Auction. Because what is a platform? A place where supply and demand are brought together. With services in the areas of deal-making, finance and logistics. Such a platform, which offers an auctioning system, provides equal opportunities for growers and buyers, requiring minimal time for negotiation. Where you work with clear rules, so that growers and buyers agree on the terms of trade. Clear and efficient.

We are now working with Floriday to build the digital platform for the entire sector. Initially, Floriday was mainly for direct trade, but now there will be one central place for all purchases: direct trade, auction presales, clock preparation and soon the clock itself. This is important for continuity. Technological developments are happening fast, so we are working on a future-proof digital clock that is easy to use via Floriday. The new clock is called ‘RFH Auction’. The clock remains a crucial purchasing and sales method for many customers.

Finally – the market decides

I would like to take this opportunity to once again explicitly focus on the clock, the auction that has made RFH great, with a unique tool for growers and buyers. Thanks to our strong cluster of growers, buyers, and other stakeholders, the clock remains significant and relevant. RFH remains committed to the clock and other trading channels. With input from the market, we continue to develop the clock. RFH facilitates the wishes as best it can, but ultimately the market – the suppliers and buyers – determines how and where trading takes place. We remain in close contact with our members and other stakeholders on this matter.