Q&A: Implementation of the GBD (General Binding Declaration)

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.

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.

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.

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.

The GBD covers the product groups of cut flowers (both greenhouse and outdoor) and houseplants. Trees, bulbs and outdoor plants are not participating because a large percentage of these groups do not sell to consumers. Since Plants & Flowers Foundation Holland takes care of communications aimed at consumers, this category was not included in the application. See the GBD for more information.

Whereas only RFH growers and buyers contributed to collective communications until 1 January 2025, with effect from 1 January 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 Plants & Flowers Foundation Holland.

The definite financial contribution is based on the measured annual product turnover. The contribution of growers amounts to 0.20%, although a 15% discount is applied. This makes the contribution 0.17% of the measured product turnover of cut flowers and houseplants.

The amount paid by trading companies will be based on total sales turnover (i.e. no longer on purchase value) at holding company level (wherever relevant) for trading companies established in the Netherlands. To clearly determine the basis, the levy applies to total turnover. Traders and wholesalers will contribute if over 50 percent of their total sales comes from trade in flowers and houseplants.

Yes. It has already been incorporated into the new payment percentages for trading companies.

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

Wholesalers will contribute if over 50 percent of their total sales comes from trade in flowers and houseplants. This means they pay based on total company turnover. Traders focussing solely on outdoor plants, trees or dry bulbs will not contribute. This is because the activities carried out by Plants & Flowers Foundation Holland focus primarily on consumers in relation to cut flowers and houseplants.

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. Plants & Flowers Foundation Holland 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.

During the past year, we worked on setting up the process and automation to collect. Plants & Flowers Foundation Holland will start invoicing from June 2025.

Until 1 January 2025, Plants & Flowers Foundation Holland was 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 Plants & Flowers Foundation for collective communications on behalf of the sector.

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.

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 the activities of Plants & Flowers Foundation Holland from 1 January 2025.

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.

See our website.

Plants & Flowers Foundation Holland takes care of international marketing and communications about plants and flowers to consumers on behalf of growers and traders. Our goals? To stimulate demand by using our communications to highlight the positive effects of plants and flowers on everyone's well-being and to increase Top of Mind Awareness. In addition, we conduct a lot of consumer research, and share the accompanying knowledge and help to implement it. Finally, our sector communication aims to positively influence the image of the sector. We do this together with growers, traders and network partners. Building a strong horticultural sector together!

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.

Until the summer, we will work on the registration process. In accordance with the GBD regulation on mandatory registration and data supply, all growers and traders covered by this regulation must register. We will start invoicing as of June 2025. As of this moment, all growers and wholesalers covered by the regulation will receive an invoice based on the expected turnover for 2025. Growers or Wholesalers who run a company from the start of the GBD, namely 1/1/2025, are obliged to pay the financial contribution for the full year. (GBD Annex C, section 2 subsection 1.)

In accordance with the GBD regulation, all growers and traders who are subject to the GBD must register. The registration form is available here and we ask organisations to register as soon as possible. It takes approx. 10 minutes to complete the form. If you have questions when filling in the registration form, please contact us via avv@plantsandflowersfoundationholland.org.

Pursuant to the binding declaration, all growers of cut flowers or houseplants as well as all wholesalers with a turnover of over 50% associated with flowers and plants are obliged to register and share data among other things. For detailed information, please refer to the GBD.

We will start invoicing as of June 2025. As of this moment, all growers and wholesalers covered by the regulation will receive an invoice based on the expected turnover for 2025.

Ask your question via avv@plantsandflowersfoundationholland.org.