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SAP 2.64/WP.120

The Dutch flower sector:
Structure, trends and employment

Paul Elshof
Food World Research and Consultancy

Part 3

Growers

Growers may be subdivided into three categories -- growers of flower bulbs, growers of flowers in open soil, and growers in glasshouses. Altogether they totalled 13,600 in 1995 -- 3,089 bulb growers; 3,089 open-soil growers; and 7,398 glasshouse growers. Their development has been uneven over the last 15 years (table 1), with a slow but steady increase in concentration. In the bulb-growing sector the number of firms has declined, whereas the acreage has expanded. Thus the average size of firms is increasing. In the non-bulb sector (flowers grown both open air as well as in glasshouses) the number of firms increased between 1985 and 1990, but then a gradual decline set in. In the meantime, the acreage was expanding continually, again pointing to an increase in farm size.

Table 1. Number of flower-growing firms and acreage

	1975	1980	1990	1993	1994	1995
Numbers
Bulb growers	n.a.	4 916	3 691	3 294	3 160	3 089
Flowers, open soil	n.a.	3 007	3 257	3 159	3 129	3 089
Flowers, glasshouses	n.a.	7 923	8 004	7 632	7 669	7 398
Acreage (ha)
Bulbs	13 010	n.a.	16 319	16 830	17 106	18 086
Flowers, open soil	1 059	n.a.	2 013	2 322	2 432	2 499
Flowers, glasshouses	3 060	n.a.	5 140	5 377	5 519	5 518

Growth noticed in all parts is influenced by two main factors: the flower-growing sector is an economically attractive sector and it is attractive for farmers to diversify into flower production or intensify their concentration on this sector because of the much more insecure future developments for many other agricultural crops due to the changes in the Common Agricultural Policy of the EU and GATT. It is interesting to note that flower production in glasshouses covered in 1995 a little less than 70 per cent of total acreage for flower cultivation. In 1975 this percentage was 75 per cent. Glasshouse acreage under flower production grew much faster and partly at the expense of vegetable/fruit production in glasshouses (table 2).

Table 2. Acreage of horticultural production under glass (hectares)

	Flowers	Vegetables/fruit	Trees	Total
1985	4 275	4 598	95	8 968
1990	5 140	4 486	143	9 769
1993	5 377	4 716	171	10 264
1994	5 519	4 472	180	10 171
1995	5 518	4 461	197	10 182

The total output of the Dutch floricultural industry grew faster than the acreage over the last 15 years, which was in contrast to the trend until 1980 when increasing production came mainly from increasing acreage. The productivity growth since the early 1980s has been attributed to cultivation on substrate and to improved greenhouses, better methods of cultivation, controlled lighting, and automation of vital processes to regulate climate and humidity.

There have been important changes in the size of firms (table 3): a gradual expansion of average size; a fast decline in the number of firms with the smallest sizes; and a fast growth of the largest firms. In the flower-bulbs subsector, all size categories except firms above 5 ha experienced declines, the largest (nearly 30 per cent) being for the under-2 ha category. The number of firms in the category 2-5 ha fell by 30 per cent, while the 5+ ha category increased by a quarter. The number of firms growing flowers in open soil peaked in 1990, and then declined. In the 15 years 1980-95 acreage doubled. The category that contributed most to this were firms above 2 ha; the number of smaller firms declined by one-third or so. Similarly in the glasshouse category the number of firms has been decreasing since 1990, all the decline being confined to the categories under 1 ha. The strongest increase was in the categories above 1.5 ha.

It is inevitable that the process of concentration will continue, driven by economies of scale. The Government is stimulating this process by contributing Dfl.300 million over a period of ten years, land consolidation being considered imperative to make the sector more competitive worldwide. Land consolidation often entails physical restructuring because of the layout of dispersed parcels and this in turn requires coordination between growers and local authorities.

At the lower end of the size spectrum, firms rely on family members for most operations except at peak times, while at the opposite end the larger firms rely completely on hired labour, five firms having over 100 employees. Middle-sized firms (1-2 ha) employ between 20-50 workers. Official statistics indicate total employment of around 25,000, but interviews with trade union officials point to a slightly higher number -- 30,000-35,000.

Table 3. Firms, acreage, and size: Flower bulbs, flowers in open soil, flowers in glasshouses

	1980	1990	1994	1995
Flower bulbs
No. of firms	4 916	3 691	3 160	3 089
Total acreage (ha)	14 307	16 319	17 106	18 086
Size distribution (ha)
0.01-0.25	553	324	258	243
0.25-0.50	545	315	234	219
0.50-1.00	769	428	332	320
1-2	1 031	660	510	468
2-3	600	449	395	346
3-4	375	292	236	250
4-5	237	226	188	186
5+	806	997	994	1 057
Flowers in open soil
No. of firms	3 007	3 257	3 129	3 089
Total acreage (ha)	1 204	2 103	2 432	2 499
Size distribution (ha)
0.01-0.25	1 585	1 212	1 067	1 015
0.25-0.50	669	695	647	648
0.50-1.00	478	694	650	651
1-2	208	444	473	475
2-3	39	112	143	153
3-4	14	50	70	56
4-5	6	21	29	34
5+	8	29	50	57
Flowers in glasshouses
No. of firms	7 923	8 004	7 669	7 398
Total acreage (ha)	3 976	5 140	5 519	5 518
Size distribution
0.01-0.10	1 769	1 433	1 231	1 116
0.10-0.25	1 497	1 349	1 188	1 128
0.25-0.50	1 548	1 350	1 251	1 212
0.50-0.75	1 287	1 269	1 179	1 103
0.75-1.00	788	934	921	911
1-1.50	612	951	1 024	1 032
1.50-2	231	352	418	418
2+	191	366	457	478

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