Brexit is still causing a stir in Great- Britain, including among growers, who have been talking a lot about the UK’s upcoming departure from the EU the last couple of months. The structure, distribution channels and staffing needs of a company seem to play an important role in the entrepreneur’s opinion about Brexit.
“I’m really disappointed that the majority of the population voted in favour of leaving the EU”, says Matthew Smith of Brighter Blooms in Preston. “My preference was to stay; operating alone isn’t good for our economy. International business is going to be more complex without a doubt, it’s going to involve more paperwork for example. And we may have to start paying import duties on products from abroad.”
Smith grows calla, dahlias, lavender and tulips and he also trades bulbs. He imports a lot of plant material, especially from the Netherlands. “This has already become 10-15 percent more expensive, because of the depreciation of the British pound. That puts a lot of pressure on my pricing. If I want to maintain a healthy margin, I’ll have to increase my prices. But you have to ask yourself what’s reasonable. I hope that my customers – mainly consumers, traders and garden centres – are willing to pay for some of the costs. It’s going to be problematic for us if the exchange rate of the British pound remains this low. Everybody’s talking about Brexit all the time now, but I try not to worry too much. There’s nothing we can do about it now, anyway. And it’s going to take a long, very long, time before everything is finalised.
Import more expensive
Clowance Wood Nurseries in Camborne is also feeling the impact of Brexit. James Cock grows dahlias, daffodils and alstroemeria and he also purchases cut flowers from other growers in Cornwall and in the Netherlands. “We sell them to florists throughout Great- Britain and to flower markets as well. In addition, we do lots of flower arrangements for weddings. The low exchange rate of the British pound means that cut flowers from the Netherlands have become ten to fifteen percent more expensive the last couple of months. At some stage, we’ll have to start passing on those costs to our customers, otherwise we’re just going to lose out.”
Businesses that don’t import a lot aren’t affected by the low exchange rates to the same extent. Like Beth Hillyard of Cornish Blooms in Praze-An-Beeble, who grows mostly daffodils, carnation and seasonal flowers. “Supermarket prices are also going up though, that’s a trend which will probably continue the coming years. I suspect that this is going to have an impact on our company, too. Even if we buy most of our cultivation supplies in Great Britain, lots of raw materials are still coming from abroad. Indirectly, this will result in price increases. Not surprisingly, I voted to stay in the EU, I have always feared the financial and economic consequences of Brexit.”
Staffing concerns
In addition to growers’ concerns about the low exchange rate of the British pound, many of them are concerned about staffing once Brexit has become reality. Cock feels it may become more difficult to get Eastern European workers over to England. “They’re very important for us, especially during the busy times. It’s going to be a big problem for us if they can’t come over any more. Most British people aren’t too keen on getting their hands dirty and on doing hard physical work.”
Hillyard says she’s lucky that she doesn’t need any Eastern European seasonal workers. “My husband and I can manage almost all the work together; we employ only one part time worker.
It’s tough at the moment for growers who depend on Eastern European workers. And all they can do is wait and see how things are going to develop.”
Local for local
On the positive side, growers believe that Brexit could bring opportunities and a boost for British floriculture. “If flowers from the Netherlands become a lot more expensive (because of the low British pound and because of potential import duties), more and more parties will turn to British products”, says James Cock. “So, Brexit could be an opportunity for British growers to get a better price for their produce and it might lead to a growth of British floriculture. I already see a growing demand for English flowers anyway; we get at least ten requests per week from florists who are specifically looking for English cut flowers. They want more sustainable and fresher flowers. ‘Local for local’ is a growing trend and Brexit will only strengthen it.”
Beth Hillyard confirms this; she says that more and more British people are aware of the origin of things they buy. “For food items, there’s already a strong preference for ‘British produce’ and the idea is slowly entering the flower industry too. This trend might mean that we’ll be able to expand our business a little in the future. We send our flowers – mostly daffodils, carnations and seasonal flowers – by mail to consumers throughout Great Britain.”
Hillyard believes that traditional English florists are also going to have a hard time when imported products – including flowers – become more expensive. “If they had to close down, consumers might come to us.
During the last twenty years, almost all the family businesses disappeared from the British floricultural scene. Brexit might help to bridge the gap that currently exists between the large companies and the very small nurseries. On the other hand, there is a good chance that Brexit will lead to a recession. When people have less to spend, flowers are typically not at the top of their shopping lists. We might have to adjust our strategy, like selling our flowers for lower prices maybe. All in all, a lot remains to be seen.”