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Date: 09/29/2008
The Dutch auction system allows growers to keep their production and sales activities separate. The price of the products is decided at the auction, eliminating competition. This method allows growers to exchange information on challenges and successes.

In the early days of the 20th century growers normally sold their flowers and plants at market or door to door. As towns grew, space was created for the middle man. These new traders gained increasing influence and demanded serious discounts. And of course, they were not overly concerned with the interests of the growers. This put pressure on incomes. This resulted in lower product quality.

Breeding ground for partnership
The growers got together and set up cooperative auctions throughout the country. By using these auctions for the joint sale of their products, the growers were able to achieve better prices. This mode of cooperative growth made Holland, the land of flowers, a breeding place for openness and partnership. This resulted in improved quality and an increase in the depth of the product assortment.

Quality assurance
Day fresh products are supplied to the Dutch auctions. Each shipment from a grower to the auction is accompanied by an auction note containing all the details of the shipment, i.e. volume, quality and, when appropriate, the grower’s own quality control data. The quality supervisor at the auction subsequently checks all shipments and may add additional comments to the auction note. If the shipment has already been checked for quality by the grower, it is subjected to further random checking.

Auction clocks
The 40 auction clocks in the Netherlands are the heart of the auction system. Every day hundreds of buyers gather before them to monitor the prices of the products being sold. The clock races down to increasingly low prices per pot or stem. Different products are sold at each clock. An auction official takes a bunch of flowers or a plant from the trolley and shows it to the buyers who are present. Large computer screens next to the clock provide information such as, number, variety, color and the name of the grower. The buyer can stop the clock at the desired price and decide how many units he wishes to buy. In just a few hours the auction sells millions of flowers and plants. Day in day out.

Facts and figures

- The 40 auction clocks are good for 125,000 transactions a day or 12 billion cut flowers and more than half a billion plants a year
- More than 60% of the world trade in flowers and plants is handled by the Dutch auctions
- Currently there is also the option to buy online: Remote Buying. A customer no longer needs to come to the auction but can follow the movements of the clock on his computer
- Image the auction in the future: photographs of the products are shown at the auctions. This has the advantage that the flowers and plants can be moved from the refrigeration area directly to the customer’s facilities.
- Growers who do not live in the Netherlands can also sell their products via the Dutch auctions. The flowers and plants are flown to the Netherlands, put into water at the auction and auctioned the next day. Imported flowers generally come from warm countries such as Kenya, Israel, Zimbabwe, Spain and Ecuador.





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