Once there were more than a thousand rose growers in the Netherlands. Now there are less than 20. How do you future-proof a rose business in the Netherlands? “It comes down to scale and an exclusive assortment,” says Arie van den Berg of Berg RoseS in Delfgauw. “That has always worked for us so far.”
For Berg Roses, economies of scale combined with an exclusive assortment work well. In doing so, Berg RoseS has acquired a unique position for itself: there is a location in Delfgauw and also a location in Kenya. There was a business in China for a very long time, which Arie is still involved in as a shareholder. A project was recently started in Colombia. In short, Berg RoseS is a grower based in the Netherlands and active on almost all continents.
“Many growers are either only in the Netherlands or only abroad,” Arie explains. “We were in the position of being able to produce from both the Netherlands and abroad. That’s complex, but we got it done. That means that now you also look into all those markets, and have more knobs to turn.”
Exclusive varieties
Roses are the most widely grown cut flower worldwide. “It is one of the most iconic flowers in the world and they fetch a good price per kilogram, making air freight profitable,” Arie outlines the international rose market. “That means you see a lot of growers around the equator, because the labor costs and energy costs are relatively low, while you can still sell all over the world. That is also where the biggest growers are, with hundreds to over 1,000 hectares of roses and other cut flowers and sometimes more than USD 300 million in turnover.”
How can you compete with that in the Netherlands? “Yes, we have seen labor and energy as major challenges for decades, and at the same time the growing impact of technology and sustainability on the production process,” says Arie. “You can differentiate yourself in the Netherlands with exclusive high-quality varieties grown in the most sustainable way.”
Relevant and profitable
“We always have the focus on the future,” Arie continues. “We have made the right investments in time, I think. Whether it’s opening companies in Kenya or China, scaling up the business in the Netherlands, or investing in far-reaching sustainability measures such as full LED and connecting to geothermal heat, it ensures that we remain relevant and profitable. Each step was manageable, so you didn’t take too much unnecessary risk either.”
Automation and sustainability
“Also in automation, I see some small steps we can take. Some growers have gone over the top because they tried to implement a completely automated growing system in one go. I think we are going to automate more and more, but certainly in the beginning mainly to make the work for people lighter and easier.”
“You can also see it in the investment we made in full LED,” says Arie. “We really had to learn to grow again. Each type of rose reacts differently to LED. But we save enormously on energy. With roses, you make a big turnover, but you also have big costs. If you can use LED to become more sustainable and reduce the cost price per rose, you make strides.”
High-end, low footprint
Labor and energy also seem to be the challenges rose growers in the Netherlands will have to deal with in the coming years. “But there are still many gains to be made throughout the chain,” Arie points out. “Logistics can be smarter, by reducing the time of transport and handling, for example. But there is also plenty to do on the marketing and sales side; further cooperation between growers, in combination with the auction can ensure a stronger market position. With exclusive varieties that are high-end and at the same time have a low footprint, you then remain very interesting for florists and wholesalers.”
“If you then also know how to tell the story of the high-end and low footprint well to the consumer, we can definitely maintain an interesting market position for Europe from the Netherlands,” Arie said. “That’s where Royal FloraHolland can play a role, for example by becoming a safe haven for flowers with a sustainability label. Be good, and tell it.”
The future of the Dutch rose
“I think roses will certainly still be grown in the Netherlands ten years from now, although the relative share from the Netherlands will continue to shrink compared to the total market,” concludes Arie. “It is also now still a difficult crop to sell or transfer a business in; you see that success is often more dependent on the entrepreneur than on the business. That is a battle that many companies still have to face. In the Netherlands, you still have real growers, but abroad you often see companies with investors who see roses as just one of the products in which it is good to invest. That’s where we can really still make a difference.”
Arie van den Berg left school in 1992 and entered his father’s business. Cultivation has been in the family since 1900. As the fourth generation, Arie took over the business from his father Matthijs and uncle Martien in 2007 and has built the company into the multinational that it is today.
In 1975, the Van den Berg family’s nursery switched to roses. In the Netherlands, it grows in a high-quality greenhouse on 16 hectares. It also has a 55-hectare site in Kenya and started a site in Colombia, collaborating with a chrysanthemum grower on logistics to Europe. The company is known for its high-quality, exclusive roses.
Source: YEALD