These are financially difficult times for many flower growers in West Friesland. Causes: rising gas prices and the war in Ukraine, which means that energy tariffs are up to three times higher than a year ago. “These companies will continue to the bitter end.”
As director of LTO West-Friesland, Trude Buysman knows the stories of companies with sky-high energy bills. “I understood that there are about 8 companies in West Friesland that say: ‘We are stopping it’. This will partly be due to the high gas prices.”
That sounds intense, but the nuance is not far away. “There are always companies that stop, for example because there is no successor. Often those types of companies have already stopped investing. Then such a high gas price can be just the last straw to stop a little earlier. really going wrong.”
Chrysanthemums
One of the growers who suffers from the high gas price is Fred van Paassen from Wervershoof. Together with his son Jan, he has been growing chrysanthemums, a cut flower, for 25 years at two locations in Andijk and Wervershoof. Although De Andijker knows how to keep a cool head, he is also affected by the high gas price and the situation in Ukraine.
Until recently, about 50 percent of the annual production of spray chrysanthemums that Van Paassen grows on his farm went to Ukraine and other countries in Eastern Europe. “Left or right, we’re going to feel it in our wallets. You have to have deep pockets.”
Three times as high
Because gas prices are shooting through the roof. “If we travel a year back in time, the price is already three times as high. It used to be a quarter per cubic meter of gas, now a euro. A big shock.”
Buysman recognizes the story of Van Paassen and of other entrepreneurs, who – if things go wrong – have lost thousands of euros more. But she doesn’t expect a collapse. “These companies are used to tightening their belts, just as tight so that they can still make it. The company has often been in the family for generations, often on native soil. It is their pride. So they will carry on until the bitter end. “
Besides the fact that gas prices are high, there is another danger lurking. Because the war in Ukraine has turned the sales market upside down. Van Paassen: “The sales market for chrysanthemums is disrupted. Although our flowers always find a way. They now end up on the European market. But the supply there is so high that prices fluctuate.”
Deep breath
Many growers have to plan six months in advance. Something that gives you tension. “If prices remain so high this winter, it will be a squeeze,” admits Van Paassen. “And as an entrepreneur that is difficult, you have to be able to deal with it. First corona, now this. That requires a lot from entrepreneurs. But we continue to grow.”
“It always keeps switching”, says Buysman. “There is always something. If there is no corona or new government rules, then again high gas prices and inflation. It does lead to higher costs. It is becoming increasingly difficult to get fat on the bones in good times.”
Over soon
Despite the financial setbacks, Van Paassen remains positive. “Well, what are you supposed to do? Don’t worry? No. All we can do now is hope it’s all over soon.”
Van Paassen is therefore in attack mode. “In recent years, we have been working on making it more sustainable. A line that we want to continue. Our new greenhouse is equipped with double screens, LED lighting and air handling units. And that is useful, especially in these times.”