Royal FloraHolland gives Flower Council of Holland ultimatum over levy collection new style

AALSMEER, Netherlands: The Members’ Council of Royal FloraHolland has given Flower Council of Holland, the marketing arm of the Dutch floriculture sector, an additional two years to agree with all sector parties on a new levy collection model.

As soon as the new model is ready, but no later than the end of 2023, the Council of Members will assess the situation and take a formal decision. Both the Council of Members and the Management Board of Royal FloraHolland prefer a sector-wide solution in the form of a Binding Declaration (VV) approved by the minister.

Unequal playing field

The Members’ Council and management of Royal FloraHolland endorse the importance of the generic promotional activities of the Flower Council of Holland. Royal FloraHolland currently collects the annual promotional levy from its growers and buyers. The collection of the BBH levy through Royal FloraHolland is no longer tenable. The reason for this is that the current method of levying leads to an uneven playing field for the co-operative and this puts Royal FloraHolland’s competitive position under pressure. The collection will therefore have to be organised differently in the foreseeable future.

Unambiguous sector-wide solution

The BBH Foundation itself is responsible for finding a broadly supported solution for the financing and is in the lead in this. Royal FloraHolland, together with other sector parties, will play a supporting role in developing a new model for levying the Flower Council of Holland monies. Both the Members’ Council and the Management Board of Royal FloraHolland prefer an unequivocal sector-wide solution in the form of a binding declaration (VV) approved by the minister. In addition, the Flower Council of Holland will be working in parallel with the sector parties on a plan B.

The current BBH levy is a decision taken by the ALV of Royal FloraHolland at the time and should be changed by the Members’ Council. The Council of Members has taken over all the powers of the ALV. The Council of Members will be informed periodically of the progress of the possible solutions. BBH will be asked to report periodically on the progress to the sector parties involved and interested, including Royal FloraHolland.