Despite a persistently difficult market environment in the green sector and many macroeconomic challenges, Veiling Rhein-Maas has succeeded in increasing its product sales to EUR 424 million in the 2023 financial year.
This corresponds to an increase of three percent compared to the previous year. This positive development is primarily based on good demand and high average prices combined with lower volumes. "We look back on 2023 with satisfaction and are pleased with the positive development of our product sales. Irrespective of this, 2023 was also a difficult year, as we also had to and continue to have to react to price increases in many areas such as labor costs and energy," said Günther Esser and Cees Hoekstra, Managing Directors of Veiling Rhein-Maas. The physical clock was once again Veiling Rhein-Maas' most important marketing channel last year, while Veiling Rhein-Maas' digital marketing channels are also very important for customers. A record was set in May: With 30,000 stacking trolleys and more than 167,000 CC-containers, Veiling RheinMaas marketed more load carriers than ever before.
Volumes and weather conditions have an impact on marketing
Sales of cut flowers were stable for almost the entire year, and sales to customers were also good. Despite a slight decline in delivery volumes compared to the previous year, sales of cut flowers in 2023 were cumulatively higher than in the previous year and significantly higher than planned. The trend in potted plants was also positive in 2023, and cumulative sales at the end of the year were higher than planned. However, volumes were significantly below plan, particularly for garden plants. Similar to 2021, this was due to consistently good demand across the industry, which meant that the quantities were not always available for auction as planned.
Sales were also stable in the past Christmas period and were up in the previous year. The price level remained constant until the end of the year thanks to good demand and was significantly higher than the previous year, particularly for cut flowers and garden plants, and slightly lower for houseplants. As in the previous year, gerberas, euphorbia fulgens, and exclusive products were in particularly high demand for cut flowers. However, amaryllis and roses were also purchased more frequently and significantly better than in the previous year. In the potted plants segment, demand for orchids, Christmas plant bowls, and arrangements remained particularly good. Only euphorbias and green plants did not quite reach the previous year's level.
There are several reasons for the lower delivery volumes in 2023. Even though the impact of the energy crisis on the procurement of goods was fortunately much less than feared, greenhouses were often heated less or not at all at the beginning of the year - with the corresponding consequences for the available quantities of chrysanthemums and lisianthus, for example. In addition, the energy situation over the course of the year also led to the closure and reorganization of businesses, which also had an impact on volumes. The largely wet and dark weather also had and continues to have an impact on harvest volumes. For example, the persistently cool weather in April and May led to a delayed start to outdoor production of cut flowers and a decline in volumes. For potted plants, production volumes were lower in July and August, in particular, due to the lack of late and follow-up sets for many bedding plant products.
Digital sales channels are popular
Even though sales of physical auctions continue to be higher, the digital marketing channels - distance selling, watch presales, and web shops - were once again used intensively. In 2023, distance sales accounted for around 40 percent of auction watch sales and thus remained stable at the previous year's high level. A good 50 percent of Veiling Rhein-Maas' customers now take part in the online auction and, therefore, are from outside the region. The webshop is also becoming increasingly popular and is used more frequently by customers and suppliers. Cumulative sales in clock presales in 2023 were 30 percent higher than in the previous year. For potted plants, the cumulative increase in sales in clock presales was as high as 60 percent, while for cut flowers, it was 10 percent. The layout of the clock presales will soon be modernized and converted to the layout of the webshop.
Current projects
As part of the strategic "STandort 2025" project, Veiling Rhein-Maas and Landgard took the first important step in July with the opening of the new Logistical Means Centre (LMC) in building T on the company premises in Straelen-Herongen. The project aims to make the marketplace attractive in the future. Since July, Veiling Rhein-Maas and Landgard Obst & Gemüse have been jointly handling the receipt and distribution of load carriers and packaging of all kinds - for flowers and plants as well as fruit and vegetables - in the new LMC, which has around 3,800 square meters of hall space and 1,500 square meters of outdoor storage space. The further development of existing areas is also part of the "Standort 2025" project. This includes, for example, the conversion to LED lighting in the halls and at the hubs, as well as the replacement of the flooring in the connecting axes, the third and final phase of which will begin shortly. In addition, many small individual measures were implemented last year under the leadership of Veiling Rhein-Maas, which are intended to contribute to traffic calming and greater traffic safety. The high demand from Veiling Rhein-Maas customers for vacant rental space on the company premises shows that there is great potential for the further development of the site.
The customer portal was expanded with numerous new functions in further project steps in 2023. For example, customers can now also submit quantity and quality complaints online in the customer portal. In addition, customers of the Service Centre can now also book their services digitally via the customer portal. Current services include the storage of non-refrigerated/refrigerated goods, order picking, outgoing goods inspection, compaction, and final price labeling. Overall, the new online functionalities of the
customer portal for complaints and booking services are very convenient enhancements. In 2024, the portal previously reserved for customers will be developed into the VRM portal, which can then also be used by suppliers.
Trade fair activities in 2023 and initial highlights in 2024
After a two-year break due to the coronavirus, 2023 was the first year in which Veiling Rhein-Maas was able to present itself again in its usual form as Germany's only flower and plant auction at trade fairs in Germany and abroad. After the International Plant Fair (IPM) in Essen in January and the Dutch trade fairs HortiContact in Gorinchem and Vaktentoonstelling in Zwaagdijk in February, the Veiling Rhein-Maas trade fair calendar also included Florall in Waregem, Belgium, in August. The trade fair year ended in November with a presence at the Trade Fair Aalsmeer. Veiling Rhein-Maas used all the trade fairs to present the auction on-site and to hold many interesting discussions with potential and existing partners.
The first highlight of the new year was the Veiling Rhein-Maas customer and supplier day on 9 January, which took place for the first time since the coronavirus break. The main topic was "Artificial intelligence and its effects and opportunities for the green sector." Shortly afterward, from 23 to 26 January, Veiling Rhein-Maas will once again present itself to the public at IPM 2024 in Essen as part of the Landgard trade fair stand.
Expectations for 2024
As the overall economic situation is very likely to remain tense in the coming months, it is impossible to predict its impact on the green sector and Veiling Rhein-Maas' business. Irrespective of this, Veiling Rhein-Maas is optimistic about the spring and assumes that the good demand will remain stable. However, the heavy rainfall in recent weeks could lead to problems with sowing because the fields are too wet. For bulb plants and bulb flowers such as tulips, slightly lower quantities are expected to be available for sale than in previous years. Deliveries of products from third countries should be normal according to current information. Overall, Veiling Rhein-Maas is therefore expecting a very stable supply at the marketplace in Straelen-Herongen.
For more information:
Veiling Rhein-Maas
[email protected]
www.veilingrheinmaas.com