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)

 

 

The ornamental sector (cut flowers and ornamental plants, trees and bulbs) is undoubtedly the agriculture sector impacted the most by the exceptional crisis derived from COVID-19, suffering since mid-March a dramatic and direct collapse of demand and consumption in most EU Member States and at international level with the large-range closure of all shops, drop out of sales channels and distribution disruption. The ‘domino’ effect that has ensued in the past 2 weeks on the overall supply-chain is bringing the whole sector to the brink of a total collapse across the EU and beyond, with immense ramifications in terms of bankruptcy of businesses and related employment across the supply-chain (production, wholesale, trade, distribution channels and retail shops).  This crisis could not have come at a worst time of the year as Spring (March to May) is the period when most of the turnover is being realised within the sector. These highly perishable and seasonal products rely on a natural plant cycle that cannot be interrupted during the ongoing crisis; this is now triggering the inevitable destruction of production and stocks to a massive scale across the EU and beyond.

We herewith call on the European Commission and all EU Member States to give a special attention to this sector and help identify and activate support mechanisms to:

•  Help growers and all companies from the ornamental sector to face the immediate consequences of the ongoing COVID-19 crisis in the form of emergency financial crisis support (financial mechanisms to support and compensate growers and supply-chain for the dramatic loss in income, stocks and economic activity and face the pressure on liquidity);
  
•  Help find ways to support the overall supply-chain and existing market structures (wholesale, trade and distribution) in the mid to longer-term to secure a (minimum) viability and re-start of the ornamental sector across the EU and beyond after the COVID-19 crisis.

 

The viability and survival of the complete ornamental sector in the EU and beyond, and all related jobs and businesses, is now at stake. This sector has never benefited from any kind of support from the CAP and has always functioned as a purely market-driven sector under the most competitive terms. Its socio-economic contribution in the EU and at international level is immense. Ornamental products also positively contribute to the quality of life and a healthy lifestyle for EU citizens, including mental health, and to the social coherence across generations. Their immense potential in being part of the solution for the overall EU Green Deal ambitions by greening cities and offsetting the effects of climate change at various levels are outstanding and should not be ignored by the European Commission and all EU Member States.

Key figures about the ornamental sector in the EU:

• The EU is traditionally a large producer, trader and consumer of flowers and ornamental plants: total production value across the EU amounts to 20 billion EUR (approximately 44% of the total world flower and pot plant production with the highest density per hectare) and the sector generate 335 000 FTE jobs in production and 427 000 FTE in wholesale and retail trade (762 000 FTE in total).
• Consumption value in the EU amounts up to 48 billion EUR (which is more than for example the total EU organic agricultural sector)
• The sector has always operated without any support from the CAP and is therefore purely market-driven and extremely competitive.
• The supply-chain is very globalised, interdependent and integrated and markets function along very dynamic flows on a worldwide scale, where the EU plays a major role. Well-managed and efficient just-on-time logistics are also key elements for the growth and competitiveness of the sector.
• The EU trade balance has been consistently positive since 2002 both in volume and value terms. Developing countries in Africa (Kenya, Ethiopia) and South America (Colombia, Ecuador) have become essential key players in the cut flower supply-chain in direct inter-dependence with the EU supply-chain and with immense ramifications in terms of socio-economic benefits and employment in these countries.
• Consumption of ornamental products produced within the EU is for 85% within the EU internal market.
• The most important EU production countries are:

1. Netherlands
2. Italy
3. Germany
4. France
5. Spain

 

	Production	Trade & Wholesale	Retail	TOTAL
Turnover	18 bn €	30 bn €	48 bn €	48 bn €
Area	210.000 ha
Employment (FTE)	335.000	95.000	332.000	762.000

 

 Inputs collected across Europe  in close cooperation between Union Fleurs (International Flower Trade Association), VBN (the Association of Dutch Flower Auctions) and the Working party Flowers & Plants of COPA-COGECA