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"We can look back on 2023 with satisfaction and are pleased with the positive development of our product sales. Despite this, however, 2023 was also a difficult year for us as we had to, and continue to have to, deal with price increases in many areas such as with labour and energy costs, for example," said Günther Esser and Cees Hoekstra, Managing Directors of Veiling Rhein-Maas. The physical clock auction was once again Veiling Rhein-Maas' most important sales channel last year, even though digital sales channels were also widely used customers. In addition, a new record was set in May. With 30,000 stacking trolleys and more than 167,000 CC-containers, Veiling Rhein-Maas sold more load carriers than ever before.
Volumes and weather conditions have an impact on marketing
Sales of cut flowers were stable for almost the entire year and sales to customers were also good. Despite a slight decline in delivery volumes compared to the previous year, sales of cut flowers in 2023 were cumulatively higher than in the previous year and significantly higher than expected. The trend for potted plants was also positive in 2023 and cumulative sales at the end of the year were higher than expected. However, volumes were significantly below expectations, particularly for garden plants. Similar to 2021, this was due to consistently high demand across the sector, which meant that the quantities were not always available for auction as planned.
Sales were also stable over the Christmas period and were up on the previous year. Price levels remained constant until the end of the year thanks to good demand and were significantly higher than the previous year, particularly for cut flowers and garden plants, however they were slightly lower for houseplants. Like in the previous year, gerberas, euphorbia fulgens and exclusive products were in particularly high demand when it came to cut flowers. Amaryllis and roses were also purchased more frequently than in the previous year. In the potted plants segment, demand for orchids, Christmas plant bowls and arrangements remained particularly good. Only sales of euphorbias and green plants did not quite reach the previous year's level.
There were several reasons for the lower delivery volumes in 2023. Even though the impact of the energy crisis on the procurement of goods was fortunately not as significant as we feared, greenhouses were often heated less or not at all at the beginning of the year which had a knock-on effect on the available quantities of plants like chrysanthemums and lisianthus for example. In addition, the energy situation over the course of the year also led to the closure and reorganisation of several companies which also had an impact on available volumes. The largely wet and gloomy weather also impacted, and continues to impact, harvested volumes. For example, the persistently cool weather in April and May resulted in a delayed start in the outdoor production of cut flowers and a drop in harvested volumes. For potted plants, production volumes were lower in July and August. This was due to the lack of late and follow-up sets for many bedding plant products.
Digital sales channels are popular
Even though sales at the physical auction continued to grow, Veiling Rhein-Maas’ digital sales channels - distance purchasing, clock pre sales and the web shop – were once again used intensively. In 2023, distance purchasing accounted for around 40 per cent of auction clock sales and thus remained at the previous year's high level. A good 50 per cent of Veiling Rhein-Maas' customers now take part in the auction online and therefore from outside of the region. The web shop is also becoming increasingly popular and was used more frequently by both customers and suppliers. Cumulative sales in clock pre sales in 2023 were 30 per cent higher than in the previous year. For potted plants, the cumulative increase in sales in clock pre sales was 60 per cent, while for cut flowers it was 10 per cent. The layout of the clock pre sales page will soon be modernised and adjusted to match the layout of the web shop.
Current projects
Veiling Rhein-Maas and Landgard took the first major step forward in their strategic “Standort 2025” project in July with the opening of the new Logistical Means Centre (LMC) in Building T on the company premises in Straelen-Herongen. The aim of this project is to make the marketplace a more attractive site for the future. Since July, Veiling Rhein-Maas and Landgard Obst & Gemüse have been jointly handling the receipt and distribution of load carriers and the packaging of all products - flowers and plants, as well as fruit and vegetables - in the new LMC, which has around 3,800 square metres of hall space and 1,500 square metres of outdoor storage space. The further development of existing areas on the premises is also part of the "Standort 2025" project. This includes, for example, the switch to LED lighting in the halls and at the hubs as well as the replacement of the flooring in the connecting axes, the third and final phase of which will begin shortly. In addition, many smaller individual measures to help with traffic calming and to increase traffic safety were implemented last year under the leadership of Veiling Rhein-Maas. The high demand from Veiling Rhein-Maas customers for vacant rental space on the company premises shows that there is great potential for the further development of the site in the future.
The customer portal was expanded with numerous new functions in other project steps in 2023. Customers can now also submit quantity and quality complaints online through the customer portal and Service Center customers can use it to book their services digitally. Current services offered include the storage of non-refrigerated/refrigerated goods, order picking, outgoing goods inspection, compaction and final price labelling. Overall, the new online functionalities of the customer portal for complaints and booking services are very convenient additions. In 2024, the portal, which until now has been reserved for customer use, will be developed into the VRM portal and will also be opened up to suppliers.
Trade fair activities in 2023 and initial highlights of 2024
After a two-year break due to the coronavirus pandemic, 2023 was the first year in which Veiling Rhein-Maas was able to present itself again as Germany's only flower and plant auction at trade fairs in Germany and abroad. After IPM in Essen in January and the Dutch trade fairs HortiContact in Gorinchem and Vaktentoonstelling in Zwaagdijk in February, Veiling Rhein-Maas were also present at Florall in Waregem, Belgium, in August. The trade fair year wrapped up in November with Trade Fair Aalsmeer. Veiling Rhein-Maas used all the trade fairs to present the auction and to talk to both potential and existing partners.
The first highlight of the new year was the Veiling Rhein-Maas customer and supplier day on 9 January 2024 which took place for the first time since the coronavirus pandemic. The main topic was "Artificial intelligence and its impact and opportunities for the green sector". From 23 to 26 January, Veiling Rhein-Maas will once again present itself to the public at IPM 2024 in Essen as part of the Landgard trade fair stand.
Expectations for 2024
As it is highly likely that the overall economic situation will remain tense in the coming months, it is impossible to predict the impacts on the green sector and Veiling Rhein-Maas' business. Despite this, Veiling Rhein-Maas is optimistic about the upcoming spring season and expects demand to remain stable. However, the heavy rainfall in recent weeks could lead to problems with sowing because the fields are too wet. Slightly lower quantities of bulb plants and bulb flowers, such as tulips, are expected to be available for sale than in previous years. According to current information, deliveries of products from other countries should be normal. Overall, Veiling Rhein-Maas is expecting to see a very stable supply of goods at the marketplace in Straelen-Herongen.
