Veiling Rhein-Maas, a prominent player in the Dutch horticulture industry, has announced its remarkable performance for the third quarter of 2023, posting a product turnover of €334 million. This figure represents a noticeable increase compared to the same period in 2022, despite a few notable challenges.
The key driver behind this positive development has been the surge in demand coupled with high average prices. Nevertheless, the floricultural sector faced dampened volumes due to the wet and cool weather experienced in July and August, primarily impacting outdoor products. Board members Günther Esser and Cees Hoekstra acknowledged the challenging landscape and recognized the need for prudent management of increasing costs in various areas, such as energy and labor.
In their statement, Esser and Hoekstra stated, “We are satisfied with the current development, especially as this is not a foregone conclusion given the market conditions. Veiling Rhein-Maas, like companies in almost all sectors, will have to continue to anticipate price increases in many areas, such as energy and labor costs, in the near future. This also means that we will have to regularly scrutinize and optimize our revenue and cost structures.”
Examining specific market conditions, the cut flower auction’s turnover slightly exceeded last year’s figures at the close of September. This success can be attributed to robust sales throughout the year and higher average prices, partly driven by the unique cool weather patterns in July and August. However, quantities delivered were marginally below last year due to the weather’s impact on flowering and harvesting.
Pot plant sales also thrived, characterized by strong demand and elevated average prices compared to the previous year. Lower quantities in July and August were primarily a result of the absence of a second or third production round in bedding plants. The sale of typical autumn products, like callunas, high-quality chrysanthemum bushes, and outdoor arrangements, picked up pace only in mid-September, aligning with the return of summer temperatures.
Notably, Veiling Rhein-Maas witnessed a stable digital presence, with over 50% of their customer base participating in online auctions. Turnover in clock sales for cut flowers increased by one-third compared to the same period the previous year, while potted plants saw a staggering two-thirds growth.
In the third quarter, Veiling Rhein-Maas continued their ‘Location 2025’ project, which included the establishment of a new Logistics Resource Centre (LMC) in July. This project is indicative of the company’s commitment to expansion and efficiency, with strategic moves to accommodate new tenants and minimize traffic congestion.
The company also introduced an online complaints system in late September, simplifying the process and enhancing transparency for customers. Additionally, supply letter requirements have been reduced, halving paper consumption in the workflow.
Moreover, Veiling Rhein-Maas announced the revival of their Customer and Supplier Day, scheduled for January 9, 2024, focusing on the theme of ‘Artificial intelligence and the impact and opportunities for the green sector.’
Trade fair participation has been a focus for the company, with events attended in Waregem, Belgium, and upcoming participation in Trade Fair Aalsmeer and the International Floriculture Trade Fair (IFTF) in the Netherlands. These efforts aim to strengthen Veiling Rhein-Maas’ international presence in the ornamental plants and nursery products sector.