FloraCulture International combines this May report with its online information to bring together the “flower auctions around the world”, including: Aalsmeer, Amstelveen, Auckland, Bemmel, Bleiswijk, Brussels, Christchurch, Eelde, Herongen, Holambra, d’Hyeres, Istanbul, Kunming, Lüllingen, Marsala, Montreal, Naaldwijk, Rijnsburg, Taipei, Tokyo, Toronto, Vancouver, Venlo, Vleuten and Wellington.

by Anabel Evans

FloraHolland, The Netherlands
The FloraHolland Auction in the Netherlands has five auction locations (export-oriented auctions in Naaldwijk and Rijnsburg, and regional auctions in Bleiswijk, Venlo and Eelde), 26 auction clocks, a nationally operating Intermediary Office handling (direct) sales away from the clocks and 3,000 employees. Since large-scale chain stores are winning ground at the expense of the traditional retail trade, a demand arises for scale increases in both production and trade. FloraHolland supports initiatives in this direction. For example, in 2005, turnover reached €2,005 million: sales at the clocks rose by 3.5% to achieve total sales of more than €1,400 million; sales via the Intermediary Office rose by 8.8%, leading to total sales that passed the €600 million mark for the first time. The total number of supplier growers is 6,900 (of which 3,100 are auction members). The number of buyers registered by FloraHolland is 2,200. Naaldwijk is FloraHolland's largest branch location. Ten auction clocks and the logistical system target quick transfer of products to the shop shelves. Export companies have permanent establishments on site and in 2005, the position of the clocks was strengthened by the introduction of a Remote Purchasing system. (www.floraholland.nl)

Merger news: It is the development in large-scale production and trade that also brought FloraHolland and Bloemenveiling Aalsmeer together to discuss a possible merger. The boards of both cooperatives signed a declaration of intent on Thursday 26 October 2006. December 2006, the Bloemenveiling Aalsmeer and FloraHolland officially reported their intention to merge to the Netherlands Competition Authority (NMa). February 2007, the NMa requested additional information and is proceeding to investigate the sector and the market in more detail; the auctions applied for official permission. Spring 2007, depending on the NMa’s decision, the draft merger report will be published. September 2007, the final merger report will be presented and the members of both cooperatives will be asked to vote on the proposed merger.

• It is the plan to achieve the merger by 1 January 2008.

• A marketing cooperation will hence start with a turnover of €4 billion.

• The new merger combination will proceed under the name FloraHolland in combination with the recognisable red tulip of the Aalsmeer Flower Auction.

• There will be six individual market places: Aalsmeer, Naaldwijk, Rijnsburg, Bleiswijk, Venlo and Eelde.

• There will be one intermediary organisation operating in several locations.

• There will be one company division focused on international sourcing (imports).

• In the transitional phase the Board and Management will consist of eleven members. Ultimately the board will consist of nine members. Gerrit Ravensbergen is the proposed chairman and Bernard Oosterom is the proposed vice-chairman. The management of the new organisation will consist of four persons whereby the general director will carry the ultimate responsibility. Timo Huges (Aalsmeer Flower Auction) is the proposed general director. For the remaining managerial positions, Rens Buchwaldt (Aalsmeer), Arnold Hordijk (FloraHolland) and Erik Leeuwaarden (FloraHolland) are the proposed candidates.

Gerrit Ravensbergen, proposed chairman: "Bloemenveiling Aalsmeer and FloraHolland are convinced that they are stronger together, and that they have to work together. The merger offers a unique opportunity in a playing field where the global competition is increasing. Our greatest service to the sector is showing what is available. We are not afraid to be a monopolist in servicing. Our know-how in logistics provides a strong link for the supply chain. We will never own products. The merger is a decision to continue strengthening our position on a global level. This is extremely important since otherwise we will stand still and allow foreign trade centres to grow around us. Here we can think of the developments in Dubai, Tel Aviv and Moscow. Our competitors are not restricted to these foreign locations, however. They are also our neighbours, who have preferences for direct trade systems. I remind that our service is in showing what is available and we do not discriminate between large or small.

“If the NMa says no, then I am sure that over a year we will sit here again, the same question will be raised and the go ahead will be given; a scenario reflecting the speed at which the world is changing. The position we find ourselves in with the NMa is due to our combined market share of over 90%. In this respect, we are the victims of our own success. It is a fact, however, that our market is primarily outside of the Netherlands and this is an area that the NMa is further investigating. With the Bloemenveiling Aalsmeer and FloraHolland combination we can realise an unequivocal and high-quality international position. And, on the basis thereof, the cooperative of growers can maintain their national and international share in the marketing of flowers and plants."


Landgard, Germany
Landgard is Germany´s leading horticultural marketing organisation. The company is wholly owned by the members of the Landgard organization. Over 3,000 German, European and international growers market their products via auctions, a brokerage system (direct to trade), distributors and Landgard Cash & Carry markets. Horticultural sales total €1,150 million (€848 million in flowers and plants). The marketing is undertaken by two operative companies: Landgard Blumen & Pflanzen, based in Straelen-Herongen and Landgard Obst & Gemüse, located in Bornheim-Roisdorf. The group operates four auctions as well as marketing the produce to the specialist retail trade via 29 Cash & Carry stores in Germany, one in Vienna, Austria and one in Prague, Czech Republic.

Covering a total area of 200,000 m² with over 300 docking stations, Herongen is the major focal point for customers in the Rhine-Maas region for marketing cut flowers and pot plants in Germany. Up to 450 customers can take part in the auctions at six clocks. The largest share of sales by Landgard Blumen & Pflanzen is from marketing pot plants (€674 million) with a specialist pot plant auction and distribution centre in Lüllingen near Geldern. Auction comment: “Increasing numbers of Landgard’s pot plant customers are demanding a standard identification system for pot plants across Europe. The Association of Horticulture system used until now in Germany employs four-figure grade numbers. It is only possible to differentiate between varieties, size of pots and other parameters to a very limited extent. As there is little to distinguish between individual items in the current system it no longer meets the demands of our customers. Plus, it hardly provides horticultural businesses with suitable recommendations for production purposes. Landgard has recognised and responded to this and on 1 January 2006 introduced Europe’s leading coding system developed by the Dutch Flower Auctions Association (VBN).” (www.landgard.de)

Ota Floriculture Auction Co., Ltd., Japan
Established in 1989, sales in 2006 reached Yen 27,726 million (€177 million). The Ota Floriculture Auction is licensed to operate one of Japan’s central wholesale markets for floriculture products. This market is the largest in Japan in scope and volume. Ota Floriculture Auction coordinates shipping and handling of merchandise from the producers, organizes auctions and facilitates trans-shipments to the purchasers, charging a commission to the producers for this service. In a field where product freshness and accuracy are key, a logistics network utilizing state-of-the-art computerized auction and information processing systems is continually being refined. Auction comment: “To date, industry growth has been driven by the enthusiastic embrace by consumers of flowers as a casual decoration as well as by the introduction of flowers into mass merchandisers, such as large home centres. With a maturing industry, proactive measures are now required. We have launched several initiatives, including the Flower Testing Laboratory and New Product Development project, to gain customers' loyalty and assist producers. Other promotional activities involve the use of our producer and wholesaler network to propose new products that will meet consumer expectations and carve out new niche markets.” (www.otakaki.co.jp)

Bird’s eye view of a flower trading centre in São Paulo state, the Veiling Holambra.

Veiling Holambra, Brazil
The Veiling Holambra, located in São Paulo state, is a major flower trading centre in Brazil; products and services reach the whole of Brazil (the cooperative is responsible for 45% of the national market), the USA and Europe. There are two Dutch-style kloks, one for cut flowers and one for ornamentals; on a yearly average, a plant lot is sold in 1.5 second during sessions. Around 40% of traded products are sold through direct sales, where clients and suppliers close deals daily, as well as short, medium and long term future sales on production contracts and pre-set values. Pot plants correspond to 56% of all sales, cut flowers 30% and ornamental/gardening plants 14%. Most of the volume comes from the town of Holambra itself, but with an increasing share coming from a 100 to 200 km radius around the Veiling. The state of São Paulo is by far the main supplier. The Veiling Holambra offers loading and unloading ramps, cold storage with different temperatures and acclimated product show room. Plus, trained staff to handle product from grower through dispatching to buyer, and quality control team to assure quality standards are followed. Most major clients are located inside the coop, for ease of access to market information. The Klok Bid is an additional purchasing tool for clients that can not attend the auction. The system allows clients to pre-set their bids, while establishing all other routine decisions such as quality, amount and so on. During the auction, in case the chosen product is not sold, as it reaches the set price via internet, the sale is automatically closed. The gross revenue of US$ 88.8 million (€66.5 million) in 2006 was 9% above 2005. Employees is 330 with 400 associated members and 550 registered buyers. The new Veiling director, Robert van Arnhem comments: “Our main challenge for the coming years is to conclude the first phase of the New Veiling, which will have a 55,000 m2 built area. That will allow the whole operation to move to the new site (a 10-min. drive from the present location), where there will be more space for both products and clients’ space needs. The New Veiling is situated in an 80 ha lot and the master plan calls for 270,000 m2 of built area during the next 40 years. The move to new the site should happen in late 2008, or early 2009, where there is already a distribution centre.” (www.veiling.com.br)

Taipei Flowers Auction Co. Ltd., Taiwan
In Taipei there are five flower auctions with the Taipei Flowers Auction Co. Ltd. having the largest share of the national market (45-50%) with an annual turnover of NT$1.8 billion (€40.7 million). The 5,000 member growers supply to 300 registered buyers in front of four clocks, based on the Dutch system, running six days a week. Around 10% of products are imported; wholesalers supply primarily to the domestic market, but some buyers do export to Singapore and Hong Kong.

Ontario Flower Growers Co-operative, Canada
Jouke Sypkes, general manager of the Ontario Flower Growers Co-operative, established in 1972 and located in Mississauga near Toronto, Ontario, Canada: “Currently, we have 75 Ontario member growers and an additional 40 non-member suppliers. Seventy percent of product sold on auction is cut flowers, 30% potted plants. The share of cut flowers imported is 23%; 77% grown in Ontario. The gallery seats 308 buyers of which 80% are reserved seats where customers can purchase the seat for the year. The buyers are made up of wholesalers (27% of sales), full service retail florist (41% of sales), flower sellers-not full service (26% of sales), garden centres (5%). Annual turnover is just over $25 million (€16 million) on the auction. Total sold lots is 850,000 at about $29.50 (€19) per lot. We have seen this annual sales number decline for the past three years by 1 to 2% each year. This is a result of the reduction in market share for the independent retailers who are the primary buyers at the auction. The local market demand has also not grown in the last few years. Non auction business, however, has picked these lost sales up and overall sales have increased by about 3% per year. A new website, which allows growers to post availability into the future and buyers the option of purchasing, is showing good results. Branding the local product to consumers is also required in order to differentiate locally grown from imported product at retail. We have five auctions per week (Monday to Friday). All start at 6.00 am with the exception of Wednesdays which start at 10.00 am; initiated several years ago in response to potential customers claiming the early start times kept them away. Tuesday and Thursday auctions sell at least two-thirds of the weekly volume. The total surface area is 15,000 m2, which includes 1,700 m2 cooler space, and 4,200 m2 drive through garage for indoor loading. (www.ontarioflowers.com)

FloraMax Flower Auctions, New Zealand
FloraMax is the largest specialist flower auction company in New Zealand with auctions in Auckland, Wellington, and Christchurch (buildings covering in total 6,000 m2). FloraMax Auckland has used an electronic Dutch auction system since May 2000. FloraMax is a division of Turners & Growers Fresh Ltd., which has traded in flowers for 70 years or more. Starting in Auckland, floral sales rapidly expanded around New Zealand. Auction comment: “The past 10 years have seen a major change to greater professionalism in the industry on the back of developments around the world. The auction’s annual turnover today is NZD 23 million (€12.4 million).” FloraMax receives a wide range of products consigned to its auction floors from a variety of suppliers (approx. 450) ranging from large production units down to the smaller specialist unit. Seasonal crops are sourced from both north and south islands to extend the periods of supply. FloraMax imports a range of tropical floral products and offers these for sale through partners to the domestic flower industry. Registered buyers total around 800. (www.floramax.co.nz)

FloraBella, Italy
A new auction house was opened on the 1st March 2007 by the FloraBella auction in Marsala, the Province of Trapani in Sicily. Two clocks (one dedicated especially for roses and the second for other flowers) run twice a week on a Monday and Wednesday. Annual turnover is €4.3 million with the categories of products sold dominated by cut flowers (98%) sourced from West Sicily (80%), East Sicily (8%), Campania (3%, particularly lilium and gladioli in the summer) and imported flowers (9%) from Holland and Thailand. Products sold are primarily for the Sicilian market (99%) and Rome (1%). The number of grower suppliers is 120 (42 members) with 300 registered buyers. (www.florabella.it)

Online: Flower Auctions around the World

Euroveiling Flower Trade Centre, Belgium
The Euroveiling Flower Trade Centre in Brussels is equipped with five computerized clocks on a 3 ha site. The broad range of flowers and plants are supplied by 400-450 growers, of which 309 are members. Registered buyers number 450-500 with the salesroom having a capacity for 550. The clock sales are complemented by the option to conduct online sales. Annual turnover is €33.6 million. (www.euroveiling.be)

United Flower Growers Co-operative Association, Canada
The United Flower Growers Co-operative Association located in Burnaby near Vancouver, British Columbia is the largest and oldest flower auction operating in North America. Every Monday, Tuesday and Thursday morning at 6.00 a.m., typically up to 100 growers sell to up to 550 buyers during three hours. Four electronic auction clocks can handle 4,000 individual transactions an hour. Over the course of a year, more than 80,000 wagons move through the gallery. The 4.2 ha site has 26 loading bays connected to a 16,000 m2 building. Remote auction testing and development is in progress. (www.ufgca.com)
Top selling crops at UFG in 2006:
Cut Flowers
Gerbera $5,880,239
Lilies $5,096,059
Roses $4,513,534
Chrysanthemum $4,019,874
Tulips $3,639,340
Alstroemeria $1,707,918
Total $24,856,964
Potted Plants
Orchids $2,029,365
Pot Mums $893,935
Poinsettias $889,225
Gerbera $759,902
Kalanchoe $715,103
Begonias $502,851
Total $5,790,380

Interprovincial Flower Market, Canada
The Interprovincial Flower Market in Pierrefonds near Montreal, Quebec, Canada has an auction system that incorporates the original electronic clock, installed in 1983, and a second new electronic clock with 250 bidding stations.

Kunming International Flora Auction Trading Co Ltd, China
Yunnan province is China’s biggest cut flower production base. To raise the circulation efficiency, the Kunming International Flora Auction Trading Co Ltd (KIFA) was founded and is located next to the Dounan Wholesale Flower Market. By starting the KIFA, the provincial government aimed at creating a market place, where supply and demand can meet each other. The KIFA auctioning system is based on the Aalsmeer Flower Auction (VBA). During the feasibility phase, VBA had an advisory role. KIFA is focusing on the top quality market and distinguish themselves from the Dounan Wholesale Flower Market with a large volume, guaranteed high quality and a full pre- and after sales service. Investment in KIFA totalled 125 million RMB (€11.87 million) with the auction building on an 11.87 ha site being equipped with two auction clocks and 300 seats for buyers. (www.kifa.net.cn)
The Dounan Wholesale Flower Market in Chenggong County has around 327 registered traders. The average daily trading volume amounts to almost 3 million stems of cut flowers and 12 tons of cut greenery. An average of 4,000 traders participates in the trading on a daily basis. During the peak period, the daily transaction volume can reach almost 4 million stems of cut flowers and 18 tons of cut greenery, with over 6,000 traders participating.

SICA aux Fleurs Hyères, France
The Hyères flower market has existed since 1984, situated in Hyères (Var Region) on the Mediterranean coast of France. Established under a SICA status, it is owned 80% by the growers and 20% by the traders. The market sells mostly cut flowers (95%) and cut foliage (5%), the main species being roses (87 million stems). The market has been encouraging diversification towards the Mediterranean range to meet a raising market demand. Amongst these products are peonies, ranunculus (25 million stems), anemones (24 million stems) and the big-headed tulip of the Var.
The market has two trading systems: auction sales, through three clocks, and contract sales. There is no remote auctioning system. 80% of products come from local growers (20 km around Hyères), 15% from the Mediterranean coast. Some foliage is imported from the North of Italy. Flowers are sold on the French market: Paris Rungis as well as all the big cities in the southern half of France. Between 15 and 20% are exported to the Netherlands, Switzerland and the North of Italy. The market has introduced a quality hallmark HORTISUD, which will progressively be extended to the whole supply chain.
Annual turnover is €45 million. Grower suppliers totals around 600, of which 450 are regular suppliers and 400 are members of the SICA. There are 350 registered buyers, of which 40 have premises on or around the market. The area of covered buildings is 20,000 m². (Gilles Rus, development manager: This e-mail address is being protected from spambots. You need JavaScript enabled to view it www.hyeresfleurs.com)

Bloemenveiling Oost Nederland, Bemmel
Bloemenveiling Oost Nederland (VON) in Bemmel is a modern trading centre offering cut flowers, indoor plants and garden plants. The auction is located at the heart of the (greenhouse) market gardening area between Arnhem and Nijmegen and the new market gardening centre of Bergerden. Some 600 growers from the Netherlands and abroad deliver their fresh products every day. Customers are retailers, garden centres, wholesalers, exporters and buyers’ organisations for chain stores. The auction site is also home to a cash & carry centre, Florissant. The customers come from across the entire Eastern Netherlands and the German border area. The auction has a modern auctioning room with three clocks. Three days a week, on Monday, Wednesday and Friday, the three auction clocks run from 6 a.m. Flowers and plants are auctioned together. Both flowers and plants are auctioned in product and quality groups. The bidding room operates a system for multi-transaction auctioning. With this system, at a single clock stop, several buyers can conclude a transaction simultaneously. This ensures a faster and more even selling process, and more balanced prices.
The brokerage office for plants specialises above all in the sale of larger lots of indoor and garden plants, exclusively for the export and wholesale markets. VON also brokers cut flowers and greenery. Important products are roses, tulips, sunflowers and seasonal flowers such as amaryllis. These flowers are not all grown in the Netherlands, but also come from other important production countries such as Israel and various countries in Africa. The cluster not only mediates for large lots for promotional campaigns, but also smaller lots for daily trade. VON also offers a bouquet service in collaboration with a number of specialist bouquet suppliers whereby (semi) machine-packed and hand-wrapped bouquets are provided. The Electronic Delivery Note (EAB) can be used for both clock deliveries and for deliveries via the brokerage office. (www.von.nl)

Veiling Vleuten, The Netherlands
The ornamentals auction Veiling Vleuten was started by a growers’ cooperative in 1917, the Cooperative Utrecht & Region UA, which currently has a membership of 175 growers. Over the years the auction has become a registered company with shares held by the Bloemenveiling Aalsmeer Cooperative Utrecht & Region UA, wholesale centre NOVA and the buyers association Vleuten. Since 2004 the Bloemenveiling Aalsmeer is a majority shareholder. Veiling Vleuten is open 5 days a week and specialises in supplies to domestic retail outlets. The combination of the auction, the wholesale centre NOVA and the green centre Horta provides buyers with a one-stop shopping centre. The cooperation with Bloemenveiling Aalsmeer has also led to a broader assortment and simpler administration for both suppliers and buyers, and includes the electronic consignment note (EAB). Total turnover in 2005 was €26.013 million. (www.bvv.nl)

Tele Flower Auction, The Netherlands
Products supplied through the remote cut flower auction, Tele Flower Auction (TFA) located in Amstelveen, the Netherlands are sourced primarily from Kenya, Tanzania, Uganda, Zambia and the Netherlands. The majority of grower suppliers have been certified by official accreditation boards, such as MPS, Max Havelaar and KFC (Kenya Flower Council) or they are in the process of being certified. In general TFA operates according to the same rules as applied in the traditional auctions. Different is the way the actual auction process can be separated from the logistics. Buyers must be able to trust the accuracy of the information provided by the TFA quality controllers. To ensure cool chain supply and fast delivery TFA has its own forwarding agent in Nairobi, called Airflo. (www.tfa.nl)

United Flower Auctions, New Zealand
The United Flower Auctions (UFA) was established in November 1987 as an independent, industry-owned company. Owned and managed by a collective of 27 commercial flower growers, UFA has established guidelines committed to the long-term survival of the auction clock system as the best and fairest method of flower marketing. Services are designed to provide effective and efficient marketing support to the supplier growers (400+ non-members), who produce for the domestic marketplace. The UFA Wholesale Trading Division provides flowers and foliages, supplied either direct from grower, or purchased from the UFA auction floor where 100+ buyers are registered. The UFA building area is 3,000 m2. (www.ufa.co.nz)

Turkey
Information from the Flower Production Marketing Cooperation coming soon.