Demand is there but supply lags behind, explains Jan Renting of Optimal Connection, a Dutch unpacking company for Kenyan and Israeli farms. According to him, the high air freight rates are the bottleneck, resulting in farms shipping less flowers.
At Optimal Connection at the Aalsmeer flower auction.
High flight rates
"This morning, we had 1,300 to 1,400 trolleys out of Kenya and usually, the amount is more than double, around 3,000 to 4,000." The reason for the low supply are the high flight rates, which have more than doubled. "Usually, there are more passenger flights flying between Kenya and the Netherlands with flowers in the belly of the airplane. However, as these flights are now cancelled, and no cargo out of the Netherlands is shipped to Kenya, they make a roundtrip, flying first from the Netherlands to South Africa, then to Kenya and then back to the Netherlands again. All in all, it results in higher costs." So, even though Royal FloraHolland's supply regulation has been phased out on April 29, there is no good increase in supply.
Fulfilling Mother's Day Orders
On May 10, in less than 2 weeks, Mother's Day will be celebrated in many European countries and fortunately, even with the pandemic, flowers are in higher demand. However, due to the lower supply, fulfilling the orders will become more of a challenge. "We have a large client in Germany, and as all flower shops are open in the country we have quite large orders to fulfil. As the supply is low, I am working around the clock to get as many flowers here as needed."
What after Mother's Day?
But what will happen after Mother's Day, celebrated on May 10? It is the final large holiday before the 'low season' of cut flowers. "Afterwards flower demand will only lift for Mother Day's in Poland (May 26) and a little in France (June 7). But how will the situation be at that point? Will the cost of airfreight be lower or not? Current flight costs per kilo are high and when a grower supplies to the clock, it all gets risky as he does know what it costs to get his product there, but not what he will get for his products. Many will decide to lower the supply or even stop supplying."
![](https://www.floraldaily.com/remote/https/agfstorage.blob.core.windows.net/misc/BP_nl/nieuws/2016/optimal.jpg?preset=ContentCustom)
Jan Renting, Sales Manager
M: +31 631639122
T: +31 297392200
E: [email protected]
www.optimal-connection.com