Q&A: Introduction of General Binding Declaration (GBD)

The GBD for collective consumer communications will take effect on 1 January 2025. The Flower Council of Holland is implementing the GBD on behalf of the horticultural sector organisation. The following overview contains the answers to the most frequently asked questions.

Don’t see your question here? Send it to avv@bloemenbureauholland.nl.

Want to learn more about the GBD application and various steps of the process? See the timeline for a complete overview.

Q&A: Introduction of General Binding Declaration 

What was going on before?

• 1. How has the funding of the Flower Council of Holland been organised until 1 January 2025? >>
  Until 1/1/2025, The Flower Council of Holland will be funded by domestic and international growers who are members of Royal FloraHolland (RFH), as well as by trading companies that are customers of RFH. A small percentage (0.2% of growers’ product sales and a sliding scale from 0.19% to 0.06% of traders’ product sales) will be collected and used by the Flower Council for collective communications on behalf of the sector.
• 2. Do horticultural professionals support a GBD? >>To determine this, two support tests were carried out in 2023 and 2024 – using an online survey by independent research firm Motivaction – in which growers and traders could express their opinion about a GBD as the new method for organising collectivity in the field of sector communications. The vast majority (78% and 74%, respectively) voted in favour of a GBD.

What changes are taking place and why?

• 3. Why is Royal FloraHolland no longer collecting contributions? >>
  Since not all growers are members of the auction company and not all traders purchase through the auction company, not everyone contributes to our collective communications. This results in an uneven playing field. That is why Royal FloraHolland will stop collecting for our activities as of 1 January 2025.
• 4. What is the horticultural sector organisation (B.O. Sierteelt)? >>Brancheorganisatie Sierteeltproducten. This horticultural sector organisation was established in 2015. Royal Flora Holland, VGB, KAVB, Glastuinbouw Nederland and LTO Vakgroep Bomen en Vaste Planten participate in this organisation. The sector organisation is officially recognised by the Ministry of Economic Affairs and the Minister of Agriculture, Fisheries, Food Security and Nature (LVNN) has been asked to declare this measure generally binding (GBD) for the sector.

  What will change?
   

• 5. What is a GBD? >>
  In a nutshell: The General Binding Declaration is an appropriate, tried-and-tested collection method. It legally establishes that all market participants must help to pay for the collective activities performed on behalf of the concerned sector. The support required for the GBD makes the collective larger and stronger. It is a proven and effective measure organised by the Dutch government, and enables us to control collections from the entire horticulture sector.
• 6. Why has a General Binding Declaration (GBD) been selected? >>Collective communication requires a contribution from all business professionals in the horticultural sector. Everyone benefits and everyone contributes. One of the most effective ways to organise this is a General Binding Declaration (GBD). The GBD is an appropriate, tried-and-tested collection method that makes the collective larger and stronger.
• 7. Which alternative funding options were considered besides the GBD? >>We fully focused on a GBD because it is the most logical approach to collectivity for communications, but behind the scenes, we also prepared other forms of funding for the Flower Council of Holland to make sure that we could continue to pursue the same goals.
• 8. How long will the GBD last? >>The GBD has been approved for a period of three years from 1-1-2025 to 31-12-2027. A new GBD can be requested after this period.
• 9. How do I know whether a GBD will be effective in practice? >> Various other sector organisations in the Netherlands operate based on a GBD, especially for collective research. In other countries, such as Belgium and France, collective marketing, communications and research within the horticultural and other sectors is organised in the same way – and to the satisfaction of their members.
• 10. Will all product groups be taking part? >>The GBD covers the product groups of cut flowers (both greenhouse and outdoor) and house plants. Trees, bulbs and outdoor plants are not participating because a large percentage of these groups do not sell to consumers. Since the Flower Council of Holland takes care of communications aimed at consumers, this category was not included in the application. See the GBD for more information (in Dutch).

• What does the Flower Council of Holland do and why is that important?

• 11. What does the management board of the Flower Council of Holland look like? >>See the management board.
• 12. What does the Flower Council of Holland do for the sector? >>The Flower Council of Holland performs international consumer-oriented marketing and communication about flowers and plants. The strategy of the Flower Council of Holland has two focus areas. The first goal is to continuously stimulate demand by strengthening the image of flowers and plants. The key theme here is ‘well-being’ and includes communicating the positive effects of flowers and plants on physical and mental well-being.
  
  Another goal is to strengthen the image of the horticultural sector using communications that focus on things like the sector's economic and social contribution in the Netherlands. For both goals, knowledge serves as the basis for all activities, and research and data play an essential role.
  
  We also explicitly focus on positively influencing public opinion of the Dutch horticultural sector. This is done in close cooperation with business professionals in the horticultural sector, growers, traders and domestic and international network partners. Building a strong horticultural sector together!
• 13. Why is collective marketing and communication important for the sector? >>The horticultural sector is undergoing a transition that will continue for the foreseeable future. This transition presents both risks and opportunities. We can only continue to stimulate demand for our products if we respond to developments collectively. This also applies when it comes to strengthening the image and reputation of our products and the sector.
• 14. What does the Flower Council do for me? >>*We have performed research to acquire knowledge about consumer needs and behaviour, and share this knowledge with growers, traders and network partners. We translate this knowledge into usable insights, such as the sustainability monitor in Europe, and research into well-being associations and the image of the sector in the Netherlands. We help horticultural professionals to apply this knowledge, so that we can work together to build a strong horticultural sector.
  *We create inspiring companies that focus on products and themes like well-being, sector innovation and sustainability. This is done through content, PR and other communication tools.
  *We develop our activities based on a national or regional approach in Europe, which includes providing growers and traders with various packages of easy-to-share content, images and knowledge.
• 15. How will the GBD affect the Flower Council of Holland budget? >> It will be smaller than the current budget. But our agenda for the future shows that we want and need to do more, which means we must focus on doing things differently and taking a smarter approach. That is the focus of our strategy.

What will change for me?

• 16. What will change for growers and traders on 1 January 2025? >>Whereas only RFH growers and buyers currently contribute to collective communications, from 2025, all growers and buyers who meet the conditions stated in the GBD (see GBD) will contribute to collective communications. Payment will no longer be collected via Royal FloraHolland, but directly by the Flower Council of Holland.
• 17. What is the new contribution of growers for 2025-2027? >>The contribution of growers will be 0.20% - 0.15% = 0.17% of recorded product sales.
• 18. What is the new contribution of trading companies? >> The amount paid by trading companies will be based on total sales turnover (i.e. no longer on purchase value) at holding company level (where relevant) for trading companies established in the Netherlands. Traders and wholesalers will contribute if over 50 percent of their total sales comes from trade in flowers and house plants.
• 19. What are the payment percentages for tradition companies? >> •    0.06% up to €33 million in total sales turnover
  •    0.05% between €33 and €150 million in total sales turnover
  •    0.03% if total turnover is more than €150 million
• 20. Will all wholesalers contribute? >> Wholesalers will contribute if over 50 percent of their total sales comes from trade in flowers and house plants. This means they pay based on total company turnover. Traders that focus solely on outdoor plants, trees and dry bulbs will not contribute. This is because the activities carried out by the Flower Council of Holland focus primarily on cut flowers and house plants.
• 21. How will the Flower Council of Holland know how much I should pay? >>According to the GBD, all market participants (both members and non-members of RFH, Plantion or VGB) are required to register their product purchases and/or sales. Growers and buyers must provide their expected sales totals and, at the end of the year, the final recorded turnover. The Flower Council has the right to demand that these numbers be specified in more detail by providing a copy of the audit report and accountant-verified turnover figures in relation to total product sales.
• 22. How will Flower Council of Holland manage the collection process? >>Over the past year, we have worked on setting up the process and automating the collection system. We are ready. We are currently assessing how to organize this as effectively and efficiently as possible, taking the needs of our paying stakeholders into account as much as we can.

• What if I have a question?
   

• 22. What should I do if my question is not answered here? >>Any other questions or requests for additional information can be sent to avv@bloemenbureauholland.nl.
• 23. I have a complaint. What should I do? >>The complaint procedure is currently being developed and an objections committee is being established. More information will be provided on this page as soon as it becomes available.

Read more?

Back to the overview.