The Dutch Flower

Cluster
Maxine Jianna Nathalie B. Magdangal
Today's Discussion
Origins

The Current Landscape

Area of Endowments

Competitive Advantages

Value Chain

Cluster Linkages

Strategies Employed by Competitors

Strategies Employed by the Dutch Flower Cluster

References
ORIGINS
origin of Dutch flower cultivation:

tulips from Turkey, 1570

exports began during the 17th

century

1610-1637: tulips became a form of

currency; traded at 3 times the

value of a prime Amsterdam

residence

1850: greenhouses for flowers

early 1900s: greenhouses made out

of glass which made year-round

cultivation possible
ORIGINS
1908: first flower trade

organization, the Dutch

Horticultural Council was

founded

1912: two auctions were

established by

cooperatives of growers

1993: an environmental

sustainability

certification program

was introduced
 DUTCH COMMERCIAL HORTICULTURE TOOK SHAPE IN SEVERAL

CONTEXTS, AND EACH HELPS TO ESTABLISH THE SORTS OF

RELATIONSHIPS, VALUES, AND PRACTICES THAT ALSO

DISTINGUISH THE INDUSTRY TODAY. THESE SEVENTEENTH-

CENTURY CONTEXTS INVOLVE TULIPS, THE BEGINNING OF

PLEASURE GARDENS, NEW MANAGEMENT TECHNIQUES FOR LAND

AND WATER, THE FORMULATION OF ENTERPRISES, THE RAPID

EXPANSION OF SCIENTIFIC KNOWLEDGE, INCLUDING BOTANY,

AND A DISTINCTIVE AESTHETIC COMMERCIAL SENSE.

Gebhardt, Andrew. Holland Flowering : How the Dutch

Flower Industry Conquered the World.
The Current
Landscape
Dutch flowers accounted for 60%

of global flower exports in 2009

6 billion stems were produced in

the Netherlands which is 50% of

world export volumes

tulips and anthodium from the

Netherlands is 100% of world

export volumes
The Current
Landscape
Dutch flowers breeding companies

registered and protected new

varieties through the Community

Plant Variety Office

programs to improve sustainable

agricultural and horticultural

practices

capital-intensive harvesting

technologies

Rabobank - a specialized

agricultural cooperative bank

Strategic Location

Fertile soil for flower

cultivation

Area of
endowments
Trade and logistics center of

Europe
 COMPARATIVE ADVANTAGE

Differential existence of highly specialized research

Advantage
organizations in flower cultivation

packaging and shipping

- freshness
a strong home demand

a highly efficient infrastructure in flower

- quality
handling and

air freight

- variety active domestic rivalry on certain focused

places and specialized home-based

suppliers

relatively small companies specialized in

a few elements of the value chain are

working together
Value Chain
Value Chain
Cluster Linkages
Cluster Linkages
 Strategies
COLOMBIA
employed by
lesser transport costs because of 3-

hour flight to Miami

competitors
internet
KENYA

daily airfreight departures to key

ECUADOR export destinations

alternative markets
tariff-free exports to the US as a

result of a trade act

ships higher varieties to Europe

CHINA

straddling

copying
How does the Dutch Flower
Cluster keep up?
INTERNATIONALIZATION
 Strategies
employed by the
Dutch Flower
Cluster
relocating  parts of their value

chain to foreign locations where

there is potential competition (this

is supported by the auction houses

and growers)

more bouquets
What is the future of
the Dutch Flower
Industry?
 References

Gebhardt, A. (2014). Holland Flowering : How the Dutch Flower Industry Conquered

the World. Amsterdam: Amsterdam University Press.

Van Hemert, N. (2005). E-businnes and the Dutch flower industry. Chicago: IAMA.

Van Eenennaam, F. & Soesman, R. (2008). The Dutch flower cluster. Netherlands:

Nyenrode Strategy Center.