UNION FLEURS STATEMENT: 

 

 The international floriculture industry has for the last three decades been an outstanding success-story of a highly integrated and interconnected global supply-chain making an immense positive contribution to both developed and developing economies around the world. In particular it has significantly enhanced the livelihoods of thousands of people in Africa (Kenya and Ethiopia) and South America (Colombia and Ecuador) who directly or indirectly derive an income and valuable socio-economic prospects from the outstanding performance of these countries on the world market. Increased globalisation and interdependence have also fostered  greater efficiency in the supply-chain and in the sustainable use of resources, and have positively stimulated  coordinated efforts across the floriculture industry to ensure it operates their businesses in a  socially and environmentally responsible manner in response to the demand for sustainably produced and traded floriculture products.

The modern floriculture industry is a global web of businesses comprising breeders, propagators, growers, exporters, shippers, importers, wholesalers, distributors, specialised and non-specialised retailers that operate in an inter-dependent manner to bring  all-year round colourful and natural products to destination markets for the ultimate delight and well-being of billions of consumers around the world. It is testimony to the efficiency of this entire supply chain that it can deliver highly perishable flowers within 48 hours of them being picked into the home of customers anywhere in the world.

But it is precisely because of this interdependence that the worldwide floriculture industry has been one to feel the greatest impact with the escalation of the COVID-19 crisis since mid-March.  An unprecedented and massive ‘domino effect’ is now in progress throughout the floriculture industry across the globe.

The downturn was initiated by the general closure of all non-essential shops in key destination markets and the restrictions placed on consumers in making their customary purchases in those countries where the virus struck. The immediate result was a sudden drop in demand, spectacularly illustrated by the sudden sales and price collapse at the Dutch auctions mid-March. Production and supplying capacity being at its peak at this period of the year, the impact has been particularly brutal on the flower industry around the world. Market prospects for Spring flower-related traditional celebrations such as the upcoming Mother’s days across Europe and in the USA are still more than uncertain. Production costs in producing countries cannot be covered by limited sales, and the planning of the future production cycles is on hold.

The specific challenges of managing the pandemic are now reaching full effect in the major producing areas in Africa and South America. It adds to the current complexity of the overall situation for the flower industry in these countries to continue to supply key markets and respond to the first signs of demand recovery in weeks. Globally, almost all international scheduled airlines have currently ceased to operate and the increased worldwide demand for airfreight has resulted in rates escalating to levels that the industry cannot sustain. Under these circumstances the traditional airbridges to key destination markets have limited availability and at a price level that is largely unsustainable for flower-suppliers from the Southern hemisphere.  For example, freight availability for flowers out of Kenya is currently less than 25% of what would normally be available at this time of the year.  The drop in European demand has forced air cargo operators to look elsewhere and coupled with the reduction of freight availability from scheduled airlines, and an increased worldwide demand for COVID-19 health and food related supplies, means that more lucrative opportunities became readily available.

The floriculture industry is a major employer in the many key countries around the world involved in the production, trade and distribution of floricultural products. Hard decisions are having to be made everywhere. In the major production areas in Africa and South America, growers are having to balance the cost of securing the livelihoods of their employees while maintaining the productive capacity of plants in the ground for the future, all from significantly reduced income. Elsewhere in Europe, Northern America and beyond, businesses across the supply-chain (growers, wholesale, import and export, distribution channels and retail shops) are faced with similar challenges from the downturn in sales with many at risk of financial collapse.

UNION FLEURS – International Flower Trade Association, on behalf of its international membership and businesses active in the floriculture trade and value-chain, calls on all Governments, the European Union, international institutions, other associations of the floriculture sector, related economic operators and its global network of long -term partners of the international floriculture industry, to support and strongly promote  a number of essential  elements that are key to ensure the  viability and survival of the international floriculture industry, and all related jobs and businesses now at stake across the world, – and allow it to re-start and recover after the current COVID-19 crisis:

KEEP TRADE GOING:

• Essential conditions of international, regional and domestic trade must continue to be guaranteed: functioning of airports, airline crew, ports, trade routes, customs, phytosanitary inspections, availability and space on cargo freight at sustainable prices (air, sea, land)
• Procedures in the export, import, customs and phytosanitary control areas should be made as fast and lean as possible to ensure a swift and efficient clearance and preserve as much as possible the quality of these highly perishable products.
• Activate trade facilitation tools e.g. digital processes and documents as much as possible

MITIGATE THE DOMINO EFFECTS ACROSS THE SUPPLY-CHAIN AS MUCH AS POSSIBLE:

• Support floriculture companies involved in the production, trade and distribution wherever possible in addressing cash flow and liquidity issues
• Additional transport and handling costs should be borne across the supply chain including customers
• Government support should be enabled to help businesses throughout the supply chain, including wholesale, distribution, florists and garden centres, to continue or resume business when it is deemed safe to do so.
• Demand and sales channels in destination markets should be sustained wherever still possible during this crisis, be it in supermarkets or online deliveries at the moment.
• Keep exposing consumers to floriculture products as much as possible and in whatever possible channels, so they don’t forget about their positive contribution to quality of life and a healthy lifestyle and buy again via their usual channels when the crisis will be over.
• Production in non-European producing areas should be sustained through facilitation of affordable freight rates and associated logistics arrangements.

The entrepreneurial and innovative capabilities of all industry players across the floriculture value-chain are being tested as we move through this crisis and will continue to be challenged going forward. But while this industry is currently in an extremely vulnerable position throughout the world, we are confident that the interdependence and partnership that define our industry will be our strength in overcoming the immense challenges ahead.

Download here: FULL STATEMENT IN PDF VERSION

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This statement is fully endorsed and promoted by the UNION FLEURS Board of Directors on behalf of the membership of UNION FLEURS and of their respective national organisations:

Richard Fox                                                                         Frank Zeiler
UNION FLEURS President                                           UNION FLEURS Vice-President
Kenya Flower Council – Kenya                                  BGI – Germany

Matthijs Mesken                                                               Augusto Solano
UNION FLEURS Board member                                UNION FLEURS Board member
VGB – the Netherlands                                                  Asocolflores – Colombia

Paolo di Massa                                                                    Peter Larsen-Ledet
UNION FLEURS Board member                                 UNION FLEURS Board member
ANCEF – Italy                                                                       Floradania – Denmark

 

Press release – 10 April 2020

JOINT CALL FOR EXTRAORDINARY AND URGENT SUPPORT TO THE EUROPEAN FLOWER & LIVE PLANTS SECTOR TO SURVIVE THE COVID-19 CRISIS

In an unprecedented move, a united  coalition of 9 European-based organizations, representing all segments and sub-sectors of the flower & live plants sector in the EU and altogether a very significant voice for the thousands of companies across the EU sustaining a total estimated market value of 48 billion EUR and employing 760.000 people, have joined forces to urge the European Commission to activate as soon as possible extraordinary and temporary support measures that are urgently needed across the EU to help the sector survive the brutal impact of the COVID-19 crisis. Preliminary estimations suggest that the overall demand for flower & live plants has decreased by 80% across the EU with the introduction of lockdown measures and the immediate closure of non-essential specialised retail shops in most European countries. These unfortunate circumstances and the massive domino effect that has ensued have placed all businesses, segments and sub-sectors of the flower & live plants sector in an extremely vulnerable position as it was just entering its peak season during which 50 to 80% of its yearly turnover is realised.

In a joint letter addressed on 10 April to the European Commissioner for Agriculture and Rural Development Janusz Wojciechowski, the signatory organisations call for:

• Urgent and temporary extraordinary EU tailor-made support measures to help producers and all operators from the sector across the EU simply survive the crisis until activity can re-start; 

• A strong and concrete signal from the European Commission that flower & live plants do matter and are a major contributor to the well-being and quality of life of European citizens and to the climate change mitigation efforts and biodiversity protection; 

• And a clear recognition at EU level that investing now in this sector to help it stay afloat will avoid further long-lasting and irremediable effects on the economic and employment activity remarkably created and sustained by the wide range of operators in this sector for decades without any intervention or support from the EU.

“Extraordinary circumstances do require extraordinary measures. This sector is a remarkably healthy and high-performing economic sector that brings joy, colour, hope, nature and well-being to all citizens across the EU and beyond. Failing to support it now as it faces a dramatic collapse across the EU would be a major and irremediable failure from the EU. We call on the European Commission to do its utmost to act swiftly and pragmatically and help this sector survive until the adequate conditions are there again for it to re-start its essential activities. “ urged the signatories to this letter in a united voice.

 

The signatories to the letter are: UNION FLEURS (International Flower Trade Association), ENA (European Nurserystock Association), ARELFH (Assembly of European Horticultural Regions), VBN (Association of Dutch Flower auctions), VAL’HOR – French inter-branch organisation for ornamental horticulture (growers, nurseries, seeds companies, garden centres, wholesalers, florists, agro-shops, landscape contractors and landscape architects), ANTHOS (Royal Trade Association for Flower Bulbs), CIOPORA (International Association of Breeders of Asexually Reproduced Horticultural Varieties), FLEUROSELECT (International Association of breeders, producers and distributors of propagation material of ornamental plants) and ELCA (European Landscape Contractors Association)