Dutch Flower Auctions

Dutch Flower Auctions have played an important part in the history of the flower market since the mid 1970s. The production and distribution of cut flowers in Netherlands has burgeoned since then and Dutch flower growers produce over 8 billion blooms.

Collectively the Dutch flower growers and the flower auctions collectively trade more than USD 3.2 billion in cut flowers and potted plants. The Dutch balance of trade depends on a good flower season from Dutch growers and growers from other countries in order to facilitate successful flower auctions.

The Dutch flower auctions are key institutions in the Kenyan flower industry and a base for the Kenyan flower traders in the Netherlands. They provide a setting where price is determined and where the growers´ supply of flowers meets the buyers´ demand. Buyers for various wholesalers and retailers participate daily in the Dutch flower auctions to purchase flowers which are then repackaged and resold to end-consumers or retail stores.

The Dutch auction is very efficient. It frees growers from the price determination process and the task of bidding and allows them to focus on production. The auction provides a central location for buyers to meet suppliers, allowing for efficiencies in the logistics of product redistribution and quality control. Aalsmeer, the largest of the seven Dutch Auctions, owned by a cooperative of about 5,000 growers, is the world's biggest flower auction. Aalsmer is spread across an area equivalent to 100 soccer fields and provides space for 2,000 buyers.