Together with growers and buyers, we started working towards a workable solution on adaptive weekly pricing in the plant trade. Growers want to be more responsive to current market conditions and buyers want more security of supply.
In a previous article, we described how we worked together to find the right ground rules for this (Moving towards real-time pricing in Floriday, Next step in real-time pricing for weekly lists). In this article, we provide an update on the outcomes of the November joint session.
Meetings with growers and buyers
In several sessions, we discussed with the market the usefulness and necessity of adaptive weekly prices and what rules of the game should apply. The last joint session was in late November, where various issues were addressed and we jointly arrived at a draft of ground rules. The session concluded that both buyers and growers seek stable prices. For growers, it is nice to have the ability to adapt prices if the market demands it. For buyers, it is important not to have too many price changes in quick succession during the week. This created the solution of adaptive weekly prices.
Adaptive weekly prices from 1 June 2024
The market's current practice of setting prices by 10am on Thursday for the following week will continue. In the last session, it was discussed to allow growers to change the price once per 24 hours. The price is processed immediately. This creates more opportunities for growers to change the price, but prevents it from happening too much. This is the first step towards the new rules of the game that will take effect from 1 June 2024. In a follow-up meeting, this will be further discussed and, if possible, decided.
Software vendors are also aware of the proposed changes. Do you have a specific question about working in a proprietary software package? Then you can ask them this question.
Continued process
We will meet again in January to agree together on set ground rules and an effective date and set out the final details. After this consultation, we will provide another update through a news release.