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The Flower Council of Holland (FCH) is facing a severe reorganization once more, now that the Association of Wholesale Trade in Horticultural Products (VGB) has reassessed its decision to co-finance the promotional organization.

The VGB’s withdrawal left only flower auction FloraHolland to finance the promotional organization for the Dutch floriculture sector. The FCH’s budget will decrease by roughly 40 percent as a result, from about 14.5 million euros (approx. $19.3 million) to around 8 million ($10.7 million). That has left the FCH in a state “resembling a vacuum,” the organization states on its website.

FCH management is left with little else to do but to draft another reorganization plan, but a budget reduction of this size virtually guarantees that employees will be laid off.

FloraHolland and the flower traders involved in VGB agreed to share the funding of the Flower Council in 2011. However, animosity between the two parties developed during the last year, eventually resulting in the VGB withdrawing its support.

This reorganization will be the fourth reform for the FCH in as many years.

Sources: Flower Council of Holland, FloraHollandand Association of Wholesale Trade in Horticultural Products (VGB).

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WildFlower Media Inc.