From Tuesday 24 March 2020 a new supply regulation is in force for the clock supply. Based on the volumes for 2019, this regulation provides clarity about the maximum daily volume that may be supplied to the clock.
Why a new supply regulation?
At the beginning of this week, all growers were called upon to temporarily supply fewer products as an emergency measure. Since then, it has been monitored on a daily basis which and how many flowers and plants may be supplied in order to keep the turnaround as limited as possible and to restore price formation. Because Royal FloraHolland assumes that trade will not recover to normal levels in the coming months, a new supply regulation has been drawn up that can evolve in line with demand developments.
What does the new supply regulation look
For each product group, the percentage of the daily volume that the grower is allowed to supply will be determined on a daily basis. In this way more can be supplied to a product group in a recovering market than to a product group where demand has recovered even less. With this we introduce a regulation that we can bridge in the coming months to a situation in which the market fully recovers. This supply regulation is based on solidarity between members: every grower receives a fair share of the temporarily lower market demand.
Important principles in this new supply regulation:
- Each supplier will have a maximum daily volume per product group based on its total volume in 2019 (number of units in direct and clock).
- Both the direct volume and the clock volume of 2019 count towards the maximum daily volume per product group. The clock volume counts for 100% and the direct volume for 30%.
- The number of trading days in 2019 (clock and direct) will also be taken into account in determining the maximum daily volume. This will give seasonal growers a proportional daily volume.
- The auctioneer determines per day, per product group, the maximum percentage that growers are allowed to supply from their daily volume for the clock. The auctioneer uses this to steer the auctioneer to set a good price and to limit turnarounds. Supply and demand are thus attuned to each other.
- The grower has a voluntary minimum of 1 whole cart. After the first full cart, the supply regulation applies.
- Growers who supply more than permitted will be removed from the supply. The entire supply will be destroyed and charged.
Advantage and protection for member
For non-member suppliers, the same calculation is used to arrive at the maximum daily volume, with an additional reduction of 50%. This emphasizes the advantages of membership. All non-self-growing suppliers who bring trade for the clock that does not originate from a member of Royal FloraHolland will be banned until further notice. This measure gives members protection against dumping on the clock.
Maximum supply soon in Floriday
To help determine the maximum daily supply, Floriday provides a specific overview of what can be supplied the next day. This overview can be found in the Floriday dashboard.
- Do you already have a Floriday account?
Log in via www.floriday.io and view your maximum supply on the dashboard. Today based on the current regulations. From Sunday you will find the new regulations on the dashboard.
- Don't have a Floriday account yet?
Create an account at www.floriday.io/login Log in with your login details and see your maximum supply on the dashboard. Floriday's support team is ready to support you. The support team can be reached via chat, email (email@example.com) and by phone (0174-352070).