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Anthos, KAVB, CNB, Hobaho and IGH are appealing to all market participants to maintain a sense of calm in the procurement market for spring-flowering bulbs10 April 2020
By now, the Coronavirus has also cast its shadow on the upcoming purchasing season for spring-flowering bulbs. What will the harvest yield? What will happen to prices? What kind of effect will the outbreak of the Coronavirus have worldwide on the demand for flower bulbs and bulb flowers, and how will this affect purchasing? No one can predict the answers to these questions but it is clear that the turmoil among market participants is not only great but also increasing. This can be concluded from the many questions received by Anthos, KAVB, CNB, IGH and Hobaho. These organisations unanimously agree to the standpoint that a sense of calm has to be maintained to the greatest degree possible. They are asking sales personnel, purchasing agents and commission agents not to make any decisions that could have far-reaching consequences for the purchasing and sales positions of market participants. In addition, they are asking everyone to respect existing purchasing agreements. For their part, the trading companies are indicating that their buyers are in a very precarious situation due to the outbreak of the virus. It is now impossible for them to estimate what the effects will be on their future business operations and their demand for flower bulbs this autumn. (This applies to both sales of bulbs for forcing operations and dry sales.) Due to the very precarious situation being faced by their buyers as well as the high default risk, the trading companies are not purchasing any more of the conventional assortment at this time, another reason for this being that many of them have already committed themselves to more than 60 to 75%. Market participants are being called upon to keep each other properly informed about the developments regarding harvest and sales. It cannot be excluded that the trade will be confronted with a huge loss of demand due to the Coronavirus crisis. Although the trade itself is having to assume the highest risks for this, it could also have serious financial consequences for growers. In view of this, buyers believe it to be important in such cases for sellers to wish to cooperate with them in making changes to agreements signed before 15 March 2020. In this respect, the trade is considering agreeing to the delivery of fewer items, adjusting prices, or supplying a different variety. Anthos, KAVB, CNB, Hobaho and IGH are asking all market participants to consider each other’s position and to act together in seeking solutions for problems that could develop during this purchasing season for spring-flowering bulbs.
Over the past few days, we at CNB have answered all your questions with respect to the Corona crisis as much as possible. We have collected and summarized the different questions and answers for you and will adjust this list daily, if necessary. Click here for the Q & A. The Corona crisis brings you but also CNB to an unknown territory. Taken into account all the uncertainties resulting from the Corona crisis, we cannot give a clear answer to any question. The answers were firstly motivated by how CNB would act under normal circumstances. To these answers any additions as a result of the Corona crisis are added. The Corona crisis and payment risks An important activity of CNB is the assessment of payment risks. Customers who buy via CNB, are assessed whether they can pay (in time). We do this, among other things, by maintaining contact and requesting documentation. The crisis now caused by the Coronavirus gives a completely new dimension to the assessment of risks. As it stands, various buyers are having problems paying their bills on time. Buyers will have to make every effort to meet their obligations. One of the main questions you have, is whether CNB will pay the upcoming payment dates. At the moment we are doing everything we can to get that done. More information You can find information about this on various websites (Anthos, KAVB). We advise you to do everything possible to claim the arrangements intended for you.
The Coronavirus hits our flower bulb and perennial sector hard. Companies that are now fully in production cannot sell their products. Stringent measures are being taken worldwide to contain Corona. Risk & uncertainty One of the main services of CNB is mediation and financial settlement of your transactions. Assessing the associated risks is an important part of the work we perform for you. The risks and uncertainty are currently high. It takes a lot from all market parties to deal with these uncertainties in an adequate manner. We will do the utmost to make a contribution to this within our possibilities. Measures CNB At CNB we have now taken the necessary measures to allow employees to work from home as much as possible. In Bovenkarspel we keep the services of CNB Cooling and preparation running. This is done with minimal staffing and all kinds of adjustments. We are in close contact with Dutch branch organisations KAVB and Anthos to assist them where necessary in the activities they carry out to keep our sector going and to limit the damage as much as possible. Contact Our main focus is on maintaining contact with you in order to make a good estimate about the upcoming payment dates. We can imagine that you have questions. Do not hesitate to ask. We are working on a question and answer list. You will be able to consult this list on our website as soon as possible.