BREXIT: AN ONGOING CONCERN

GERMANY

In pandemic times, Germans embrace flowers and plants

Recent Co Concept research commissioned by IPM ESSEN uncovers that 2021 was another very strong year for flowers and plant sales in Germany.

After many years of stagnation, the German market volume in 2020 was €9.4 billion; at the time, this was a record high, then last year, this figure was surpassed. However, it remains to be seen whether the German demand for flowers and plants brought about by the pandemic will continue to grow or whether it will prove to be merely a one-off effect. There is a lot of evidence to suggest that flowers and plants will be a crucial quality of life factor in the future. At the pandemic’s beginning, it was impossible to anticipate the coronavirus protection measures’ positive effects on the horticulture sector. As sentiment swayed between hope and fear, there was a great deal of uncertainty as to whether the sales channels for “living” horticultural products would even be open. On the other hand, whether the consumers would want to spend money on flowers and plants during such financially uncertain times or decrease their willingness to spend. Nearly two years on, the conclusion is that aside from Germany’s first lockdown, the seasonal selling times for green products went out the window, as green products and flowers established themselves as symbols of normality and a pleasant environment. Because consumers had fewer opportunities to spend money on travelling, eating out and cars, they increasingly focused on their own homes and gardens in recent times. According to market analyst Agrarmarkt Information Company (AMI), consumer spending increased significantly in 2020. There were unprecedented growth levels between 2019 – i.e. before the pandemic – and 2020, with a rate of growth of 5.1 per cent. 2021 saw a nine per cent increase in the market volume compared to the previous year. Per-capita expenditure for flowers and plants increased from €108 in 2019 to €113 in 2020 and €124 in 2021. In 2020, the sharp rise in novice gardeners boosted growth across the various segments. Experts estimate that the number of customers in the specialist retail sector increased by between 10 and 20 per cent. Together with the existing customer base, the influx of first-time customers resulted in increased spending in the various segments. In 2020, consumers in each segment spent one euro more per capita on perennials, deciduous shrubs, green houseplants, bedding plants and balcony plants than they did the previous year. According to industry experts, there has been a general increase in shopping on the whole. When translated to around 83.2 million German citizens, this represents a guaranteed increase in market volume. 2021 also showed that customers in the horticultural retail sector are willing to pay slightly more for plants. An analysis of 2021 till receipts shows that customers spent up to 20 per cent more per purchase than in 2020. According to experts, the average purchase amount per receipt increased by 10 per cent. However, 2020 was a peak year for customer numbers, which meant no significant increase in 2021.

TWO YEARS ON... BREXIT IS AN ONGOING CONCERN

Bruce Harnett is Managing Director of Kernock Park Plants, Cornwall - a grower and distributor of young ornamental plants. Kernock offers a wide range comprising over 1,200 different varieties of seasonal and perennial plants. Kernock is the UK headquarters of Proven Winners. In 2020, Harnett wrote a column about the uncertainty of Brexit and how this would impact our sector. At the time, he expressed his “feelings of dread that we might not understand the true situation until the eleventh hour”. Two years on, we ask Harnett how he feels about the new requirements post Brexit.

The challenges of importing and exporting into and from the UK continue. Some shipments will almost certainly be delayed following the next phase of implementing customs inspections. Importers are simply not aware of the paperwork required, and when elements are missed or misinterpreted, it can cause excessive administration and delay.

The migration over to Import of Products, Animals, Food and Feed System (IPAFFS) from the Procedure for Electronic Application for Certificates from the Horticultural Marketing Inspectorate (PEACH) should be manageable. We hope we will have some benefits to the new system.

However, the more significant concern is the change to the border operating model for July 2022. The suggestion that 100% propagation material will be inspected from that point at the border control posts or control points is simply unimaginable. The magnitude of the task is not workable. Consider the hundreds of artic loads with mixed consignments of plants alone that enter the UK every day with many exporters destined for multiple importers and a wide variety of commodities. Some items need inspections that are not accessible without unloading the whole lorry. Unloading, inspection and re-loading will not be acceptable for the hauliers, and there are simply not enough hours in the day to consider this approach. I have written to our plant health, and I understand that they are considering the facts.

For more than a year, I have urged them to physically run through the intended process for a few days at a border control post in spring, even just to grasp the scale of the task before implementation in July. I would be very interested to know if they still believe that this is possible without causing untenable delays that will cause chaos and unthinkable loss to the industry.