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Brexit, lower Sterling puts pressure on Dutch flower sales

22-02-2017

2017-02-22

Dutch flower sales are being adversely affected by Brexit and the lower euro/sterling exchange rate, the Financieele Dagblad reported on Wednesday.

One trader Dutch Flower Group said sales of tulips, roses and chrysanthemums to British supermarkets have fallen so sharply that the company has put its plan to expand storage capacity in England on hold. DFG financial director Harry Brockhoff said earnings were under extreme pressure as a result, the paper said.

The Dutch flower growing sector exports an annual €5.75bn in flowers, plants and bulbs. After Germany, the UK is the second largest export market, good for €900m a year. In January, sales to the UK fell back by 6% while overall exports rose by 12%.

DFG is the largest flower broker in the world, with global exports put at €1.4bn a year and €300m to British supermarkets alone.

Other flower brokers also noted the British market is shrinking. Intergreen’s commercial director Jan-Paul Rijke said: ‘Dutch flowers are more expensive’.

Brockhoff said British supermarkets want to maintain their selling price. ‘That means either small bouquets or more green and fewer flowers,’ he said.

Read more at DutchNews.nl: Brexit, lower sterling pressure Dutch flower sales http://www.dutchnews.nl/news/archives/2017/02/brexit-lower-sterling-pressure-dutch-flower-sales/

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