“French growers must find another way, and that other way is export”

The French floriculture sector is facing increasing pressure from rising input costs, shrinking margins and a highly concentrated distribution market. At the same time, the country has strong production capabilities and a wide range of locally adapted plants. According to horticultural analyst Brand Wagenaar, these strengths could eventually create opportunities for French growers to expand into export markets.

Brand has been active in horticulture since 1968 and has extensive experience in both the French and Dutch sectors. Born in France, he worked in the Netherlands earlier in his career and later ran a company importing Dutch products for French growers. Today, he advises organizations in the French horticultural sector and remains closely connected to both French and Dutch industry contacts.

Shrinking margins and fewer growers
Brand describes the current situation in France as challenging, particularly because input prices are increasing while selling prices remain under pressure. “An important reason is that the economy is not so favorable for growers. The prices of inputs are going up, while prices are under pressure on the other side. So the margin is really shrinking.”

The French ornamental sector consists of production, distribution and landscaping. Brand estimates that production involves around 2,750 growers and more than 15,000 employees, with a value of approximately €1.8 billion. Distribution, including garden centers, florists and large retailers, represents around 45,000 employees, approximately 9,500 points of sale and €5.4 billion in value. Landscaping represents roughly 144,000 employees, almost 35,000 companies and €8.9 billion.

The number of growers is declining, but Brand does not expect production itself to fall significantly. Instead, he sees increasing concentration within the sector, with companies taking over production when another grower closes. At the same time, productivity is improving through technology. “Production remains the same despite the fact that the number of growers is decreasing,” he explains. “With all the technology, we can produce more on the same hectare.”

Distribution holds significant power
One of Brand’s biggest concerns is the growing concentration of garden center distribution in France. A large share of sales points is connected to major companies or cooperatives, giving distribution considerable influence over prices. “That is really the problem for France, in my opinion,” he says. “The power of distribution is very big, and it has a real influence on the price.”

This is particularly problematic at a time when growers are already dealing with rising costs for young plants, peat and energy. Brand argues that growers and distributors should work more closely together to share the remaining margin. “The best solution is that distribution really sits at the table with production to share the margin. But they don’t do that. They simply tell the grower the price they are willing to pay.”

He warns that this could ultimately become a problem for distributors as well. “If they don’t have production anymore, what are they going to buy?”

Export as an alternative
Another defining characteristic of the French market is its dependence on imports. Brand estimates that France currently imports around 60% of the ornamental products it needs, mainly from countries including the Netherlands, Belgium, Italy and Spain.

Historically, France did not have the same need to export as countries such as the Netherlands. Its large territory and varied climates allowed it to produce a wide range of plants for domestic consumption. “Everything that was produced was consumed locally,” Brand explains. “France was self-sufficient in the consumption of its own products, so there was no need to export.”

However, he believes this could change. The growing power of distribution may force French growers to look for alternative markets, and Brand sees export as one possible route. “Growers must find another way, and that other way is export. The products are there.”

Quality could become an export advantage
Brand believes French growers have a strong product to offer internationally. Compared with intensive Dutch production, he says French plants are often grown more slowly, resulting in sturdy, well-rooted plants. “The French product is grown much more slowly, with a slightly harder growing medium. It is sturdy and well rooted,” he says, adding that this could be particularly relevant in the context of climate change.

France also has a broad range of climates, from Mediterranean conditions in the south to the Atlantic coast and mountainous regions in the east. This supports a wide diversity of plant material adapted to different growing conditions. Perennials are currently performing particularly well, while trees with greater heat resistance are also gaining attention. France has relatively little cut flower production, although Brand points to products such as ranunculus and peonies as areas in which French growers perform well.

The main obstacle to exporting, however, is not the product itself but organization. Brand points to the lack of a nationwide French cooperative comparable to the large Dutch horticultural organizations and to the highly developed logistics network available from the Netherlands. “If we can use the Dutch logistics lines as return freight, for example, then there are possibilities,” he says.

For Brand, the potential is therefore clear, but whether France makes the transition from import market to export player remains to be seen. “We have the products. They are good, and they are high quality. I hope we will see more French products worldwide.”

For more information:
Brand Wagenaar
[email protected]
https://www.linkedin.com/in/brand-wagenaar-9a47721a/

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