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FloraHolland auction rates 2010

FloraHolland is budgeting a small decrease in turnover of 1.5 per cent for 2010. “By being thrifty we can ensure that the auction does not become more expensive while modernizing sufficiently at the same time,” said Financial Director Erik Leeuwaarden at the recently held general meeting. The rates for members will remain largely the same in 2010.The basic commission will be 1.4 per cent.

Sales via FloraHolland Connect will be 0.1 per cent cheaper for members. The clock commission will stay at 2.3 per cent. The auction is working towards further harmonization of the various rates. Lot charge will be decreased at Naaldwijk and Rijnsburg.

Surcharges for contract suppliers
FloraHolland is currently implementing the strategic vision “joint forces in an open market”. The cooperative strength and capabilities has proven itself in recent difficult market circumstances and the interest from suppliers worldwide in participating in the cooperative is increasing. An increasing number of suppliers has made the choice of becoming a member of the cooperative FloraHolland in thepast year. Access to and availability of a market, services, financial security and relative low sales and distribution costs are the driving motivators.

The strength of a cooperative market is depending on the commitment of its suppliers and in particular its members. In return the cooperative has to reassure that members do have an advanced benefit. Reinforcing the cooperative means in practise that FloraHolland has the ambition to invite more (international) suppliers to become member. In order to make membership a more attractive option, benefits of membership will be increased.

Not only the availability and costs of services but also the costs of sales will become more favourable for members. The lowest costs possible for members require also a strong financial position & minimal finance costs. Until now only membership required a compulsory contribution to the capital position. However, both member and non-members are enjoying the benefits. The board of FloraHolland is of the opinion that both members and nonmembers should equally contribute to the equity position of the cooperative.

In order to achieve the best results for its members the board of FloraHolland has decided that all suppliers have to contribute to the equity position of FloraHolland, including the contract suppliers. All suppliers will be informed by personal letter.

Source: FloraHolland Newsletter (December 2009)