Management update: April

In this update, our interim CEO, David van Mechelen, looks back on the past month and looks ahead on behalf of the Royal FloraHolland (RFH) management team.

Market update
We are right in the middle of the peak season, which means it is busy across the board for our sector. Unfortunately, the first few months of the year saw somewhat lower results, mainly due to changeable and colder spring weather. Things picked up in March, and we are seeing better results, especially now that spring weather has arrived. This improvement is expected to continue in the coming period in the run-up to Mother’s Day, both nationally and internationally.

To ensure everything runs smoothly during this busy period, our logistics colleagues are doing a fantastic job of making sure everyone receives their purchased flowers and plants on time. It’s wonderful to see so many colleagues from the office stepping in to help with logistics. Their commitment is not only useful and welcome, but also educational, bringing us closer together.

International members & geopolitical tensions
The impact of the war in the Middle East is deeply affecting our international members on a daily basis, both personally and professionally. In Africa, we see how geopolitical unrest, extreme weather, the high cost of air freight and logistical disruptions are converging to create an exceptionally difficult situation: in some cases, part of the supply cannot be sold and must be redirected. This combination is putting margins under severe pressure and demands great resilience from our members.

For our Israeli members, the reality is even more acute: they find themselves literally in a war situation, resulting in significant personal and business uncertainty. Even though we cannot solve everything, it is important that we, as a cooperative, remain strong together and continue to see, acknowledge, and support them – even from a distance.

Member sessions
In April, member sessions were held again at various locations in the Netherlands and Germany, during which many members actively engaged with us in discussions about the cooperative and our tariff system. Due to the busy spring period at our members’ businesses, attendance was slightly lower than during the autumn sessions, but the appreciation for the meetings was comparable.

The dilemma game on the renewal of the fee structure was well received, as it helped to explore different perspectives and deepen the discussion. The question ‘how do you distribute the costs fairly among our members?’ was central. The answer is complex due to the wide variety of members’ needs, but we have one thing in common: we want to stand strong together with a future-proof international platform based on a broad range of products and sufficient scale. We will take the insights and input provided by our members with us as we move towards the renewal of our system. In early May, I will continue this discussion together with André van der Linden (CIO), Leo Keijzer (Cooperative Affairs) and our local teams during the member sessions in Kenya and Ethiopia.

Auctions via Floriday
Behind the scenes, we are currently working intensively on the next step in our digital transformation: making auctioning via Floriday future-proof. Moving away from the outdated ‘remote buying’ system is necessary to reduce continuity risks and create scope for further innovation. At the same time, we are well aware that this is a radical change, both technologically and, above all, because it will take some getting used to for many of the clock users. That is why we have deliberately opted for a step-by-step and controlled approach, with clear phases and a strong focus on preparation and support.

It remains an exciting time – that is to be expected with changes of this magnitude – but our ambition remains undiminished: to work together towards a reliable auction solution via Floriday by the end of this year. Only by doing this carefully and together can we ensure that trade continues to run smoothly and reliably in the future.

Cybersecurity
In recent weeks, it has become painfully clear just how close the digital threat has come. Cyberattacks no longer occur far away; they affect our sector, our growers, and, consequently, the entire supply chain. What strikes me most about this is that the success of an attack rarely comes down to ‘silly mistakes’, but rather to how professionally and sophisticatedly cybercriminals operate. At the same time, we still too often see a reluctance to share incidents, out of shame or uncertainty. That makes us vulnerable. Cyber resilience is not an individual task, but a shared responsibility. Only by being open, sharing signals with one another and joining forces can we make the sector truly resilient. Read more about this in André’s column.

Collective agreement negotiation outcome
Last month, RFH once again held intensive consultations with the trade unions regarding a new collective agreement. During the seventh round of talks on 8 April, a negotiation outcome was reached that is viewed by all parties as balanced: it does justice to the commitment and contribution of our employees and, at the same time, is responsible with a view to the future of the cooperative in challenging circumstances. This negotiation outcome is not yet a final agreement; it will be put to the trade unions’ members for approval in the coming period.

Royal FloraHolland Sustainability Award
This month, registration opened for Register now for the Royal FloraHolland Sustainability Awardthe Royal FloraHolland Sustainability Award, the premier prize for member-suppliers who contribute to a future-proof floriculture sector through sustainable product or business innovations. With this award, we recognise and encourage entrepreneurs who, with vision and drive, work on solutions for societal issues such as the environment, social conditions, business operations and technological innovation. The award fits in with our broader commitment to promoting, valuing and raising the profile of sustainability throughout the entire supply chain.

Previous winners demonstrate that this approach works: from organic pest control and circular waste streams to smart production lines that reduce the use of chemicals. Members can submit their initiatives until 15 August; a panel of experts and a public vote will ultimately determine the winners, who, in addition to a trophy, will also receive support to further promote their sustainable innovation.