African competition threathens Dutch rose growers

Last week it was announced that Dutch rose grower Zuurbier & Co is facing financial difficulties. In an article on www.fd.nl, it is explained that the company was mainly focused on the Russian market. The nursery in Heerhugowaard produces roses with long stems, which were popular in Eastern Europe. According to sources, the demand for these roses decreased sharply, which resulted in financial problems for Zuurbier & Co.

Zuurbier & Co is owned by two families, Zuurbier and Oudhuis. According to the Dutch newspaper Financieel Dagblad, the company employed 600 employees at nurseries in the Netherlands and Kenya, last year. Due to disappointing results, 40 employees had to be fired in Heerhugowaard, in 2013. This fall, the remaining employees in the Netherlands were fired.

In the article is stated that more Dutch rose growers are facing difficulties at the moment. Due to high energy costs, decreasing demand and increasing competition from countries like Kenia, Ethiopia and Tanzania it are difficult times for Dutch rose growers.

Over the past few years, the number of rose growers decreased drastically in the Netherlands and increased sharply in Kenya. Kenya is known as a country with a profitable climate, low wages and good connections. As a result, Kenya became the largest producer. It is remarkable that many Dutch growers have an establishment in an African country as well. Also Zuurbier has an advances production greenhouse in Kenya.

According to fd.nl, Zuurbier & Co already suffered from financial loses in 2011 and 2012.

Source: Financieel Dagblad.