Keeping an unshakable belief in Dutch roses

Most green professionals are aware that the heydays of the Dutch rose industry are long gone. While the home production of cut roses in the Netherlands continues to decline, Kenyan and Ethiopian output has risen dramatically over the past decades. Even so, Marc de Baan, market manager for roses at Royal FloraHolland, has an unshakable belief in the resilience of Dutch rose growers who managed to keep quality high while weathering themselves against the vagaries of a volatile energy market and global uncertainty.

Marc de Baan is the first to admit that Dutch-grown roses have endured turbulent times for many years. He says, “Many Dutch rose growers have ceased operations altogether or chose to diversify and swap roses for another crop.”

The energy crisis – representing 20-30 per cent of costs – heavily weighs on Dutch rose growers; some opted for a period of dormancy, and others chose to heat and light their greenhouses less.
De Baan adds, “With fewer Dutch rose blooms available, wholesale customers increasingly sought alternatives from Africa and South America. And Dutch rose growers are still grappling with this switch in trade flows. Nevertheless, we see plenty of future for them while further globalisation of the rose industry is a fait accompli.”

Kylie Minogue wowed crowds at the internationally renowned Glastonbury music festival a few years ago. When performing an intimate version of ‘Where the Wild Roses Grow’ with Nick Cave, the Australian singer handed out hundreds of Red Naomi roses as the quintessential symbol of love.

Moderately positive

For about two years, clock pre-sales in roses have been stable at more than five per cent, but De Baan sees room for improvement. “Because within the total range of cut flowers, pre-sales account for more than nine per cent. Pre-sales is a tool that Dutch rose growers mostly use with percentages nearing 15 per cent in some cases.”

Suppliers from Kenya and Ethiopia often make different choices than pre-sales, mainly guided by the auction-based companies that handle their consignments, unpacking and selling their roses through the clock.

Over the past year, the clock percentage in roses has increased slightly to 57 per cent. Asked about this year’s outlook for Valentine’s Day, De Baan notes, “Expectations for Valentine’s Day and International Women’s Day are moderately positive, while direct trade modelling on long-term supply contracts indicates a slower pre-order uptake. This situation can either benefit or put pressure on clock prizes.”

Decline in production area

With energy costs spiralling out of control over the past two years, Dutch rose production fell sharply. De Baan elaborates, “The glasshouse area down to roses in the Netherlands has fallen from 800ha to less than 130ha over the last 22 years. In 2023, the volume of Dutch production passing through Royal FloraHolland fell to below 496 million stems, approximately 16 per cent of total sales volume.

Five years ago, this percentage was still close to 25 per cent. De Baan continues, “This dramatic drop in sales volumes is partially due to a difficult start of the year 2023. However, the outlook is more rosy now, with a larger number of Dutch rose stems anticipated to be traded at Royal FloraHolland in 2024. The energy market finds itself in less rocky waters, and growers are now going full steam ahead and have found the right balance between keeping quality high and energy consumption acceptable.”

Red Naomi’s strong brand awareness helps foster trust in the supply chain.

There is work to do

At the same time, Baan admits that major rose-producing countries such as Kenya and Ethiopia are vital for the Royal FloraHolland cooperative, while he quickly adds that Dutch roses are equally unmissable. De Baan says, “Eventually, it is the market, in-time delivery, a broad assortment, the cost versus price, well-oiled logistics and cold chain that dictate where flowers will be sourced from. More recently, we have increasingly seen more South American and African-grown roses in flower shops in Southern Europe. Still, also in, for example, Poland, these markets previously bought relatively more Dutch roses. So, there is work to be done for Dutch rose growers to regain market share or find new sales markets and areas.”

Surprisingly pink

A rose is a rose is a rose, but not always a red one. The German schlager ‘Rote Rosen’ (red roses) from Freddy Breck in the 1970s may have to be renamed ‘Pink Roses’.

Anyone who thinks that red is still the most prominent colour in the rose trade will be disappointed. In 2024, at Royal FloraHolland, pink has become the most popular colour in roses, followed by red and white. Yellow, orange, purple and mixed colours (in a bouquet) follow at an appropriate distance. There is no single best explanation for the dominating pink colour, but it is safe to say that the much higher number of pink varieties compared to their red counterparts plays a role.

Valentine’s Day and International Women’s Day naturally fuel a boom in red and white roses. De Baan explains, “Rose is and remains the absolute top favourite within Royal FloraHolland’s cut flowers, followed by Chrysanthemum and Tulip. The varieties ‘Red Naomi’ and ‘Avalanche+’ are among the best-selling Dutch roses, while ‘Athena’, ‘Madame Red’ and ‘Ever Red’ dominate the Top Three import roses.

“Regarding market segments, retail sales show some decline and there is a slight shift towards traditional wholesalers and florists. Germany is the major buyer of Dutch roses while exports to Eastern Europe continue to increase.”

Excess policy

Rose growers supplying at Royal FloraHolland are united in the Rose Product Group, an alliance striving for a more regulated and regular clock supply of blooms. The measures to avoid oversupply seem to pay off. De Baan elaborates, “This requires constant monitoring of the market and an ongoing debate within international suppliers. Sometimes, action is required, leading to a difficult but necessary message. These stricter rules compensate for better pricing. In addition, sustainability, CO2 footprint and certification are key points no rose grower can ignore anymore.”

Marc de Baan, market manager, roses at Royal FloraHolland.

Together, we are strong

De Baan believes that investments are needed to fund rose campaigns. “Unfortunately, no joint rose promotion is being undertaken, but the subject is being discussed and is a work in progress.

Meanwhile, promotional efforts have proven to be worthwhile. One good example is the campaign built around spray roses, prominently present at international trade shows. There are also some smaller grower collectives doing brand building, including Avalanche+, and you see marketing activities emerging from rose handlers on social media, which is fine. However, it would be wise for Dutch rose growers to focus on the positive brand image of their product. I think ‘Red Naomi’ could use some promotional support; its brand awareness is already strong, and this red rose has so much to offer and holds a strong future. I am also a strong advocate for industry collaboration in addition to many individual efforts. After all, together, you stand strong and go further.”

Keukenhof anniversary rose show

It is safe to say that the queen of flowers will shine during the 75th-anniversary edition of the world-famous spring garden Keukenhof. Its forthcoming rose show will surely steal the show and coincide with a grower meeting on 4 April and a rose competition. De Baan adds, “It goes without saying that we want to make this even more extensive in the Roses Product Group than last year and invite many growers, buyers and breeders. We are already working on an interesting program in close collaboration with the Keukenhof Rose committee.”

Central Auction

In conclusion, De Baan reports that Royal FloraHolland has started phased Centralised Auctioning. He says, “On 30 November 2023, Centralised Auctioning went live for the first time with all roses being auctioned through central clocks. Using Centralised Auctioning, we digitally and physically bring the supply and demand of flowers and plants together at a large international flower marketplace. This will lead to optimal pricing while introducing new services and ensure efficient and bundled logistics and transportation. This results in a seamless connection to business processes, cost reduction and sustainability of the floriculture chain.”

This article was first published in the February 2024 issue of FloraCulture International.