Every fortnight, Royal FloraHolland's auctioneers give an update on the current situation on the clock. In it, they discuss the influence of various factors on sales and prices, such as the weather and the season. Today, Erik Boland looks back at the role of the weather and the influence of salary payments.
Weather
Weather plays a major role in the flower and plant trade. In warm summer weather, supply often increases while demand falls, bringing prices down. In cool, gloomy weather, flowers and plants grow more slowly and demand remains more stable, often resulting in better prices. We see this pattern throughout the year.
This spring, for instance, was cold and stormy. As a result, consumers bought fewer spring products, and prices came under pressure. When the weather improved, demand increased and prices rose. Holidays such as Valentine's Day, Women's Day, and Mother's Day always bring high demand and good prices, but weather plays a big role there too.
Plant consumers remain very traditional
Besides the weather, the season also affects demand. In autumn, products such as Chrysanthemums, Pumpkins and Calluna sell well. Other products, such as pot roses and pot gerberas do not do as well at this time of year. Consumers remain traditional in what they buy, and it is important for traders to respond accordingly.
The role of the auctioneer
The auctioneer plays a vital role in getting the best price for a grower. One strategy we use is to set a minimum purchase. This means buyers have to buy a minimum number of barrels. If supply is high and demand is low, the auctioneer sells larger quantities at a time. If supply is low and demand high, smaller quantities are offered to optimize the price.
The influence of salary payments
Besides weather and season, salary payments also play an important role in the demand for flowers and plants. Towards the end of the month, when consumers have received their salaries, we often see an increase in demand. Buyers anticipate this and make sure their shops and garden centers are well stocked.
For more information:
Royal FloraHolland
Tel: 088 789 89 89
www.royalfloraholland.com