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Schouten: 'Farmer pays price for cheap food'

June 17, 2019 - Niels van der Boom - 11 comments

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.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
11 comments
hans June 17, 2019
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]
"In addition, the Central Bureau of Statistics (CBS) published new figures on food costs on Monday 17 June. These have recorded 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 grains that is 3,8%, dairy is an increase of 3% and fruit and vegetables are 2,6% more expensive."

Before farmers claim higher prices, that price increase is the result of the VAT increase on food.

"She believes that the supermarkets should also pay a fair price. Schouten wants to make agreements this year to achieve this. "The risk is now too much with the farmer. High demands are made on food, including for animal welfare. A higher fee is justified."

Let us know what the minister thinks is a "fair price" for the farmer's product, and what kind of "agreements" she has in mind with the supermarkets.

Journalism is not blindly displaying a minister's text, but also questioning those easy, popular statements and asking the questions that are necessary.
Subscriber
Niels van der Boom June 17, 2019
Dear Hans,

You are of course absolutely right. In addition to this news item, with which we report the latest news, a background article will follow as soon as possible in which all details are explored.
Subscriber
seagull June 17, 2019
Also add a good substantiation where you can see that this is also positive for the wallet of the farmer
peta June 17, 2019
Is our minister in favor of a Nexit with closed borders? Or is the sector falling for a fake story?
Because if our large gritters can get it from abroad for a dime less, the Dutch producers will be thanked!
Or is a quick hard clean-up of Dutch agriculture the real goal?
In this cabinet there is little sense of reality that all parties that support it can be blamed!
Peter Jansen June 17, 2019
The supermarkets are not going to pay a fair price, that's not how the economy works. The supermarket industry is generally listed on the stock exchange. Every supermarket feels the hot breath on the neck of the shareholders who shout over and over again: MORE PROFITS!!
sustainable member June 17, 2019
we supply the milk to the dairy industry, and not to the supermarket.
these have been paying almost the same price for 15 years. I don't know if anyone has thought of it being fair.
has June 17, 2019
now that the price is rising, it must become fair, otherwise purchasing power is at risk.
Subscriber
roy June 17, 2019
those 'honest agreements' and the disputes committee are rubbish. Under that guise, the farmer is stripped of his crop protection and fertilizer. Most products are for export anyway and will therefore have to be able to compete at all times. Lower quality is then not an option. Supermarkets are not prepared to pay a significant additional price compared to a foreign supplier. Vegetables come from Egypt just as easily.
flaming June 17, 2019
And meanwhile they are negotiating with the mercosur countries (south america) to approve a new trade agreement, who will be the victims of that.
hypocritical politicians
FREEDOM WARRIOR June 17, 2019
Message to Vlaamsing, You are right tis a Hyprocrite gang!!!
food must be cheap, they hand out money (subsidy) to keep the price low until they have no other choice, but soon we will get a basic income. LIFE PUTIN THIS IS JUST A SUFFER, HERE A GANG OF JANETTEN. Who want to keep us stupid ( the dollar is as good as gold)
frog June 18, 2019
hello has anyone now realized where this is going with green christian? We are only going to produce in this way for a small part of the Dutch market (75% will come from cheap foreign countries) and we can stop the export of seed potatoes/onions/carrots/tulips because the foreign requirements are no longer met. can be met. The result is a fall in the price of land and thus cheap purchases of agricultural land for solar panels and nature. Youth has the future, but it will no longer be in the Netherlands!
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