Is the farmer really receiving a price that is too low?

The Netherlands Authority for Consumers & Markets (ACM) will investigate prices in the food chain. The price formation monitor will soon show what price companies pay for the purchase of a product and what the selling price is.

The research is taking place at the request of Minister Carola Schouten (Agriculture, Nature and Food Quality), who previously had know that agricultural entrepreneurs foot the bill for cheap food. The monitor must visualize price formation for each link in the chain. The monitor will also describe the differences in price structure between a number of regular products and their sustainable variant.

Six agricultural products
This initially concerns 6 products: onions, white cabbage/sauerkraut, tomatoes, pears, milk and pork. This is a cross-section of the Dutch agricultural assortment, ACM explains. In addition to the price, we also zoom in on developments on the agricultural markets.

Wageningen Economic Research will collect the data for ACM and will do so for at least 2 years. The results are presented annually. The first report is expected in mid-2020.

Strengthen farmer's position
Many farmers and horticulturists feel that they have little influence on the price they can ask for their products, ACM explains. Increasing demands on animal welfare and sustainability do not translate into better yields. Minister Schouten wants to strengthen the position of farmers in the food chain, says the statement, in order to ensure that nothing stands in the way of becoming more sustainable.

The monitor must result in a social discussion that can be conducted on the basis of facts. The mechanisms behind price formation are also examined in order to better explain the differences between, for example, companies, product variants and seasons.

Unfair Business Practices
In the meantime, work is also being done on Dutch legislation to prevent unfair trade practices in the agricultural sector. This is a translation of a European regulation. The bill states that ACM will monitor the ban on unfair commercial practices, which should contribute to a stronger position for farmers.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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