12 A sea of flowers at 2011 Pack Trials - Floraculture International

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Floral wholesale are mainly targeting Europe, but Florimex Ecuador, in addition to their trade flows to Europe, has kept strong business relations with the USA and Canada.” Challenges All floral wholesale companies are more or less facing the same challenges, says Mr Falk. “Florimex’ follows a customer-driven strategy. It’s the customer’s wish to see where the product originates from. The same customer decides which intermediary will take care of storage and transport. Margins are under pressure; new competitors are entering the market with lower cost structures. The economic crisis has caused a significant drop in flower and plant sales over the last years.” According to Florimex’ CFO, the future belongs to companies which are able to professionalise and to meet the growing customer demand for guiding and advice as many large retail chains are not really familiar with the flower and plant business. “This means you need to have very reliable and open contact with your customers and only then will they allow you to take care of this specific type of business. When new retail chain such as DIY stores set up a flowers and plants sales division, we can teach them a lot. What you really need is a team of professional employees in a professional wholesale company.” In search of the necessary product information, an increasing number of supermarkets are contacting the grower directly. “They want to speak with the product specialist of the nursery level.” Germany as economic engine The year 2010 showed improving sales especially in Germany. “We experienced a strong growth in the beginning of this year and we expect further growth for the rest of 2011. Germany is considered as the economic engine for floral consumption in Europe. Nobody can tell if the reported growth in Germany will be structural. Germany has a strong tradition in manufacturing, providing a strong base for the present growth.” When asked about the future, Falk foresees a further diminishing in the number of flower and plant wholesalers. “Luckily, we have witnessed only few bankruptcies. Blumex was the first really huge floral wholesaler to collapse I expect further consolidation of the business, with more increased cooperation and mergers. Something of which we should be more aware is that our industry hasn’t gained a good reputation amongst bankers. They often consider the risks too high and banks are extremely careful. Cash flow in our industry represents a problem. On the sales side, we have to take enormous debtor’s risks and on the purchasing side, the auction forces us to pay at once. Wholesalers are the biggest clients at the auction, but our mutual relation needs to change. In future, we would like to become a real partner of the auction and not just one of their many clients. While the auction should remain focused on sourcing, the wholesale business has to concentrate on sales. At Veiling Holambra in Brazil,the auction started in banking to finance trade and give support to their customers. Perhaps, also here in Holland, the auction should step into these activities to keep a strong network of sales companies.” Moderately optimistic Falk is moderately optimistic about the future “I hope we can achieve a more structural growth in the years to come.” Consolidation of the business is set to be an ongoing process, both on the growers and the traders’side. Falk concludes, “No more than a hand full of large trading houses will survive along with some smaller-sizes companies specialised in niche markets. Also Ciccolella is on its way to become an important player in the market. For Florimex too, a good future lies ahead. Our major shareholder, however, at some point will exit and therefore, there will always remain uncertainty about who comes next!” ||| June 2011 | www.FloraCultureInternational.com 23
Page 1 and 2: ‘Concordia res parvae crescunt’
Page 3 and 4: IPM DUBAI INTERNATIONAL PLANTS EXPO
Page 5 and 6: Table of Contents June 2011 Volume
Page 7 and 8: Editorial & Administration Offices
Page 9: The media can be made to meet the d
Page 12 and 13: Trials The 2011 European Spring Pac
Page 14 and 15: Research/breeding Financially backe
Page 16 and 17: World News WITH US Sion Young Plant
Page 18 and 19: SPECIALIST POT PLANT & CUT FLOWER V
Page 20 and 21: Floral wholesale Statistics publish
Page 24 and 25: Events OFA Plug & Cutting Conferenc
Page 26 and 27: Auctions (II) Established in 1972,
Page 28 and 29: Auctions (II) ing wholesale compani
Page 30 and 31: Braam Youngplants.pdf 1 29-03-11 16
Page 32 and 33: Auctions (II) Veiling Holambra offi
Page 34 and 35: Get easy-to-implement solutions!
Page 36 and 37: owerCents_54x124.indd 1 22-01-2009
Page 39 and 40: World News United States White Hous
Page 41 and 42: Certifiable in California by John I
Page 43 and 44: Science Monthly Your source for the
Page 45 and 46: Prize winners of the 2011 Keukenhof
Page 47 and 48: Cees Hageman, sales manager De Ruit
Page 49 and 50: Classifieds HELP WANTED Florasearch
Page 52: PINDSTRUP SUBSTRATES for Profession

12 A sea of flowers at 2011 Pack Trials - Floraculture International

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