The plant reproduction material sector forms the basis of the agricultural and horticultural cluster. Plant breeding and propagation are the very first link in the agricultural production chain.
 
Breeding
Breeding means improving and modifying cultivated plants to obtain specific traits and characteristics, such as quality, flavour, yield, resistance to diseases, adaptation to changing climatic conditions and shelf life. In the wild plants crossbreed randomly, but in a controlled breeding programme this process is steered by human intervention by selecting which plants are used as 'parents' of the next generation. Parent plants with certain desirable characteristics are selected, in the hope that the required traits will be combined in their descendants. This process is actually the basic principle behind (traditional) plant breeding. Crossing two plants in this way ultimately results in the birth of a new variety.

Breeding companies or nurseries develop the new varieties. This is often a lengthy, and therefore costly, process. A traditional breeding programme can take from 7 to 15 years, depending on the type of plant involved. For this reason modern techniques are increasing being used to help accelerate the breeding process. Biotechnological markers can be used to trace important genes. This means that at selection it is possible to already determine whether a plant has the required traits at an early stage.
 
Propagation and trade
In order to make a newly bred variety available for growers, the variety must be propagated. Due to the climate conditions and the extremely high labour costs involved, the production of seed and cuttings is increasingly shifting to countries such as Africa and Central America. Rooted or unrooted cuttings or tissue culture plants are supplied to specialised companies that root the plants and raise them into young plants, or directly to production growers or nurseries.
 
The plant reproduction material that is traded in the Netherlands must comply with certain standards. For example it must be varietally true, varietally pure, free of disease and free of weed seeds. Plant material sold to nurseries and growers must also meet these demands. The Dutch General Inspection Service for Agricultural Seeds and Seed Potatoes (NAK), the Netherlands Inspection Service for Horticulture (Naktuinbouw) and the Flowerbulb Inspection Service (BKD) inspect seed and plant material and issue the certification.
 
Propagating
Propagating young plants is a separate specialisation. Ornamental plants and crops destined for human consumption are raised on specialised companies. These companies produce seedlings from seed. The seedlings are in turn supplied to production growers. The specialised companies also root cuttings obtained from crops propagated vegetatively. The young plants are supplied to both the greenhouse horticulture sector and to growers who cultivate crops outdoors. Rooted cuttings and young plants are also exported.