Friday, 9 March 2012

Perishability forms High Cooperation

The success of Cooperatives have been highlighted and scaled with perishability. The flower industry in Holland is 95 percent owned by one Company FloraHolland, which provide a sales and storage service to its producers and controls and manages the overall logististics of the industry. They handle 600million Plants per year, 20000 varieties and a turnover of 4.1 billion Euro from 8000 suppliers and 3000 wholesalers and exporters.  This is a very disciplined industry as the perishability of the flowers limit the flexibility of the producer, the flower industry is all greenhoused with gelatine based nutrients systems. At FloraHolland they sell 21 million plants a day in a Dutch Auction system. The discipline extends to management in that the core view is management should not outlast 3-4 years. Their innovation has contributed to creating technology responsible for 29kilograms of tomatoes from 34 litres of water.

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