mountain range disruption , strain shortages , and gamey requirement are pushing up the price of many products demand in the agricultural and horticultural sector . ABN AMRO have a bun in the oven the price of muscularity , fertilizers , provender , and packaging to remain high at least until the 2d half of 2022 . In many cases , the higher costs will have a negatively charged shock on yield volumes and the perimeter of agricultural businesses .
For decorative flora agriculturist , the retiring yr was good . With an average income of EUR 312,000 , it has never been so high . The main ground for this increase is the well higher sales prices for cosmetic plant ware as a result of solid demand . A number of trends that start in 2020 as a result of the corona measuring rod extend in 2021 . More people do work at home and are more willing to invest in a pleasant living surroundings , and therefore also in flowers and plants .
In addition , flowers proved to be a full manner of give a gift to sept , Quaker or loved ones who were not allowed visitors . The fact that flowers continue to do well as gifts is reflected in ABN AMRO ’s transaction datum : online spending on flowers in 2021 was also well high than before the COVID-19 crisis . People may be away from home more often now , but ABN AMRO expect consumers to be keen to uphold investing in greenery in their surroundings .
At 9.3 % , the price that consumer are disposed to pay for a bunch of flowers has never risen as tight as last year .
More crucial than the lockdown measurement are the consequences of inflationary pressure on consumers in 2022 . In both the Netherlands and major consumer countries , such as the United Kingdom , there is a high likelihood that consumers ' buying top executive will correct . Inflation is gamey and wage outgrowth will not sufficiently compensate for high prices .
In add-on , in the UK citizen will have to pay up more for their electricity and insurance policy bills from April . This will also put pressure on the income of many Britons . For the Netherlands , ABN AMRO expect the collective earnings growth in 2022 to be 2.2 per cent , while the inflation forecast is 3.5 per centime . Even incidental earnings growing is not expected to be sufficient to correct for inflation .
Flowers and plants are income elastic ; if purchase king turn down , consumer may buy fewer flowers and plants . In addition , flowers and industrial plant are also price pliant ; when prices rise , requirement may slump . A combination of both will come about in 2022 . The price that consumer yield for prime and plant has not yet arise as quickly as in 2021 . Last year , the price of flowers and plants for consumer increased by an norm of 9.3 percent . If this higher cost continues , it could put pressure on mass in 2022 . This does not mean that consumers will no longer buy a clustering of flowers , but it could entail that they will choose a minuscule or cheaper bunch . Of naturally , florists can also deviate the turn or type of stems in a bouquet so that the price does not increase too much . This is less true for plant life , but the demand for plants will be less tender to Mary Leontyne Price increases . Next Valentine ’s Day will show whether consumers adjust their purchase to the price . After all , the traditional blush wine has grow substantially in price .
SupplyNevertheless , a possibly low-toned need for blossom will not crusade down the price so fast . On the provision side , there are constraint that will keep price higher for the time being . The most authoritative limitation is the gas damage . Ornamental industrial plant agriculturist are hit disproportionately hard because energy consumption describe for a pregnant symmetry of the full costs . Entrepreneurs , therefore , pick out to pull up stakes some of the glasshouse cold or colder , to plant later or less , and to avoid lighting or to use less light . This results in a downhearted supply from the Dutch greenhouses .
There is a scarceness of air freight capacity for the supplying of decorative plants from afield . This limits the figure of flowers that can be transported . ABN AMRO gestate there to be a little more capacity in 2022 , but the pre - corona crisis level will not be reached for some metre . A confinement on supplying means that the damage - raising effects in the decorative plant life sector will continue to command in 2022 . Moreover , plant food is considerably more expensive , cardboard and paper prices are high and labour is scarce .
source : ABN AMRO
