Minister Carola Schouten (Agriculture, Nature and Food Quality) will present her vision on circular agriculture on Monday 17 June. The government is going to invest hundreds of millions of euros in this every year. "Food is incredibly cheap here. Farmers pay the bill for it," she said in an interview with the Algemeen Dagblad.
The minister cannot believe that circular agriculture will increase the costs for food exclude† If it is up to her, the vision of the agricultural sector will change. "From producing more, more, more to a production method that burdens the living environment as little as possible. Nature, climate and the environment should not be taxed."
The 'Realization Plan Vision LNV' is Monday morning June 17th published on the website of the National Government.
Farmer duped by cheap food
"In the 70s we spent about 20% of our income on food. Now it is 10% to 12%," Schouten says. "Food has become incredibly cheap and the farmer pays for it. His income is very low. The environment and nature are also affected. It is ironic that a lot more food is wasted, because it is so cheap."
It is not only consumers who have to dig deeper into their pockets, because they believe that supermarkets should also pay a fair price. Schouten wants to make agreements this year to achieve this. "The risk now lies too much with the farmer. High demands are made on food, including for animal welfare. A higher compensation is justified."
Power for the farmer
Using the amended European competition law as a handle, Schouten wants to make it easier for farmers to make agreements with each other. There will also be a disputes committee, where farmers can submit their complaints. That's about it next a bill to the House of Representatives.
In addition, the Central Bureau of Statistics (CBS) released new figures on food costs on Monday 17 June published† These have achieved the largest increase in 10 years: 3,8% on average over May. Meat and fish in particular have become more expensive (almost 5%). For bread and cereals this is 3,8%, dairy is an increase of 3% and fruit and vegetables are 2,6% more expensive.
Prices rise
Statistics Netherlands' figures support Schouten's statements. 10% of average consumer spending is on food. 25% of this amount is spent on meat and fish, followed by vegetables and fruit with 22%. At 12,9%, dairy has the smallest share in the spending pattern.
In 10 years, food has become on average 14,5% more expensive. That increase is less than all goods and services, whose prices increased by 16%. Fruit and vegetables have risen the fastest with a 20% price increase.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/financieel/ artikel/10882881/schouten-boer-betaalt-prijs-voor-cheap-food]Schouten: 'Farmer pays price for cheap food'[/url]