With a volume decrease from 12.5 to 12.4 billion units of flowers and plants bought and sold, the increase in turnover was primarily due to an increase in average price. The growing turnover in 2013 is credit to the strength of the cooperation. General Manager Lucas Vos comments, "In 2013, European consumers stayed loyal to our product in what was a difficult year. I am fully aware that there was not such good news in all areas. Our individual members saw varying results and many companies in this sector have been struggling for a while. While the Netherlands' floriculture sector has a solid structure, we need to continue to respond to developments in the market from this strong basis."
One-off lose
While the turnover for flower and plant sales increased, the FloraHolland company booked a loss of €7.4 million in 2013. This loss was the result of the sudden change in the sales method. With growers increasingly opting for direct sales rather than clock sales, the auction revenue dropped. Regular business operations were unable to sufficiently absorb this loss and FloraHolland has therefore taken measures to bring the operating results back to the desired level in the foreseeable future. In October, FloraHolland implemented a reorganization, the costs of which were approximately €22 million. An appeal was made to the members of FloraHolland to cover these costs and the company is maintaining its financial health in this way. Meanwhile, the bankruptcies of two large traders early 2013 had a negative impact on the results and land was devalued by €10 million.Changes
Kompas is the name given to the current reorganization underway at FloraHolland. In order to cater to a market that is changing drastically, it includes changes to costs, services and organization, and prioritizes efficient customer-oriented operations more than ever. FloraHolland's customers are its members' customers. As such, the best way to serve the customers' interests is to ensure that their customers are satisfied. Alongside the financial impact for members, Kompas has above all impacted FloraHolland's staff, with the measures under Kompas resulting in 200 FTE being made redundant.FloraHolland 2020
FloraHolland is in great flux and is implementing Kompas to cater to a changing market. It is, however, unclear to customers and members where the changes are heading and a need has been expressed for greater clarity regarding strategy. In response, 'FloraHolland 2020' has been launched to lay down the strategy and provide more clarity and direction for both the sector and those within the company. General Manager Lucas Vos comments, "Strategy starts with one question: 'Why?' In our case the question is, 'Why are members loyal to FloraHolland?' The second questions is, 'What are the specific areas in which we need to excel in the changing market to ensure that we earn and even increase their loyalty in 2020 too?' We will be answering these questions under FloraHolland 2020 over the next few months."Source: FloraHolland
