Planting Material: Legal Risks and Market Opportunities
While the first part of this article focused on quality, origin, and the true cost of young planting material, we now turn to another crucial aspect: legal protection and market opportunities.
Behind every batch of planting material lies not only a cultivation story, but also a legal framework of plant plant breeders’ rights, licenses, and certificates. Mistakes in this area can have serious consequences—from financial claims to reputational damage. At the same time, professional buyers such as governments and retail chains are setting increasingly strict requirements regarding origin and sustainability. In this second part, we zoom in on the risks and opportunities concerning legal protection, certification, and supply reliability.
What about genetic rights and licenses for foreign planting material?
One often overlooked aspect of cheap foreign plant material is the legal ownership of the variety. In the Netherlands, growers are used to working with varieties protected by plant breeders' rights or license agreements, under the supervision of breeders and licensors. Abroad, different standards may apply, and enforcement is often more difficult. This leads to risks such as illegal propagation, brand dilution, and even legal claims. For Dutch growers working with exclusive varieties or who distinguish themselves through innovation, clarity about rights is essential. Peter Kroes, Managing Director of Van Vliet New Plants, puts it plainly: “A cheap batch may seem attractive in the short term, but can still lead to high costs or reputational damage later on.”
Legal risks of cheap plant material
GGP.news: In your view, what are the biggest legal risks for growers working with non-certified foreign planting material?
Peter Kroes: “The danger is that an enforcement raid takes place and your nursery gets shut down. If you don’t have contracts with breeders, you must always purchase plant material with the license included. My advice: always request an invoice that specifies the license fees separately. That way, you're legally covered.”
Illegal propagation still widespread
GGP.news: To what extent do you still see cases of illegal propagation or trade in protected varieties across Europe?
Peter Kroes: “Unfortunately, it still happens on a large scale. Sometimes it’s minor violations, but now and then we see truly serious cases. This month, for example, a major raid is taking place in Poland at a nursery with 100,000 illegally propagated plants. We’re carrying out that operation together with Breederplants and Kolster BV. This month, a raid on a grower with 100,000 illegal plants takes place in Poland."
How do you check legal purity?
GGP.news: What can growers do to make sure the plant material they buy is genetically and legally sound?
Peter Kroes: "Always ask for an itemised invoice with separate mention of the licence. In addition, check the websites of the licensing agencies. There you can check which species can be grown by whom. And in doubt? Then raise the alarm with the licensing agency immediately."
Price pressure leads to risk
GGP.news: Do you see price pressure leading to some growers deliberately taking risks with licences or breeders' rights?
Peter Kroes: "Yes, absolutely. But it's like stealing in the supermarket or filling up without paying: sooner or later you get caught. And then it often costs you three to four times what the licence would have cost. In addition, you get blacklisted and your reputation is permanently damaged. "The fine is often three to four times higher than the licence. And your reputation? You lose that."
Breeders and agencies must enforce
GGP.news: What responsibility do breeders and licensees have to keep the chain transparent and legally clean?
Peter Kroes: "It is a shared responsibility. We do this not only to protect the breeder's investment, but also to ensure fair competition. We monitor nurseries, auctions, the internet and even physical points of sale. Our staff are out and about 150 days a year and also visit garden centres, supermarkets and florists to see what's on the market - and who supplied it."
What does all this mean for marketing opportunities?
Not only quality, but also reliability of supply determines the sales potential of young plant material. Anyone selling to professional parties such as governments, exporters or retail chains must be able to deliver what is promised - in the right species, size and quantity, and at the right time. Sebastiaan Hoogenraad of Hoogenraad Boomkwekerijen puts it aptly: "What you order in spring, you have to get delivered in autumn exactly according to specification." His company exports to more than 20 countries every week and knows from experience how crucial tight logistics and reliable stock are. "That's where many foreign suppliers leave stitches," he says. The risk of misplacing or discrepancies is higher when importing young planting material, especially from fast-growing, price-oriented suppliers. Growers who buy cheap planting material often have to sort or correct as a result. And then you have already lost your price advantage. In that sense, the Dutch planting material we supply is very reliable and our customers appreciate that. At the same time, the sales channel is becoming increasingly critical. Retail chains, municipalities and foreign clients are setting stricter requirements when it comes to certificates of origin and autochthonous labels. The demand for climate-resistant varieties is also growing. For growers focusing on sales to professional customers - from State Forestry Commission to German cities - questionable or non-certified material is becoming an increasing obstacle. Phytosanitary issues then also quickly become a problem. More and more companies are therefore deliberately choosing certified Dutch planting material with proven performance and clear provenance. In addition, customers' order lists often consist of 10 or so different types of crops. Surely that is inconvenient if they have to source all that from different addresses at home and abroad, more convenient if it comes from one address with one set of papers, origin and phytocertificates."
Certification is not a must (yet) - but it is coming
GGP.news: How important are hallmarks and certifications - for your sales to professional clients such as governments and green contractors?
Sebastiaan Hoogenraad: "The demand is there, certainly from retail and government. But for us it's not just about regulations. It is also a question of sustainability and continuity: we want the company to have a future for the next generation as well. "We now comply with MPS A. Certification is not yet a hard requirement for most export customers, but that is certainly going to change. With questions from the construction sector, the subject does already come up - then you really have to be able to deliver with origin and indigenous material. We don't just want to comply with regulations, but also ensure that the company has a future for the next generation.’
Provenance and traceability becoming more important
GGP.news: Do you notice that clients are increasingly explicitly asking about provenance and traceability of plant material?
Sebastiaan Hoogenraad: "In our own cultivation, this is still limited at the moment. But from the construction industry - for example in projects - this question is becoming increasingly common. If you cannot prove the origin, you run the risk of being excluded."
Quality is everything, especially for export
GGP.news: To what extent does the quality and reliability of your young plants determine your position on the market?
Sebastiaan Hoogenraad: "Reliability and quality are really essential for our customers. They trust us to deliver what they need so they can meet their production planning. In many of the countries where we supply, the climate is more extreme than here. They have a short window to pull the plant through. That's why we supply a lot of planting stock in pot 12 and 14, in addition to our standard P9. I always call that “instant happiness”: you have just a bit heavier planting material that can be used immediately and give results sooner. ‘Instant happiness - that's what we deliver with pot 12 and 14: earlier results, less risk.’
Cheap planting material is often expensive buy
GGP.news: What do you see as the biggest risk to sales when growers choose cheap foreign planting material of dubious origin?
Sebastiaan Hoogenraad: "We see that sometimes people buy purely on price, and then things go wrong. Replacement varieties are then delivered or the quality is poor. That seems advantageous, but you see more waste or plants do not achieve the desired quality. And then you still have to make adjustments. A few per cent failure because you bought poor planting material often costs more than just buying good material. Ultimately, as a grower, you want the end result to be right - for yourself and for your customer." ‘A few per cent failure rate ends up costing you more than the difference in purchase price.’
Conclusion
In an industry where varietal authenticity, security of supply and certification weigh increasingly heavily, growers cannot afford to make a mistake. Using cheap planting material without a clear licence or origin not only poses legal risks, but can also damage relationships with buyers. Suppliers like Van Vliet New Plants and growers like Hoogenraad underline the importance of transparency, reliability and long-term vision. Those who want to secure their sales must think today about tomorrow's requirements.