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Everyone agrees: farmers should earn more

17 October 2020 - Eric de Lijster - 18 comments

Dutch farmers and horticulturists have to earn more to be able to respond adequately to the challenges of food production. European borders must also be closed for cheaper food produced to lower standards. In an agricultural debate between politicians, critics and agricultural advocates, remarkably enough, almost everyone agreed on this.

Opinions differ widely on the way to achieve a better earning model for the farmer. The so-called Farmer & Directors debate in Amsterdam was organized on Friday by Agractie to discuss the future of Dutch agriculture. Five pairs were placed opposite each other who were allowed to discuss with each other on the basis of 5 statement. For example, Mark van den Oever, chairman of Farmers Defense Force (FDF) was allowed to cross swords with Johan Vollenbroek, the foreman of Mobilization for the Environment (MOB). Jan-Cees Vogelaar, chairman of the Mesdag Dairy Fund Foundation, also faced D1 MP Tjeerd de Groot.

Do not produce nor import
Hennie de Haan, chairman of the Dutch Poultry Farmers' Union (NVP) and CDA MP Jaco Geurts were allowed to start off with the statement: the border must be closed for food that does not meet our requirements. De Haan was clear about that. "We are not allowed to import what we are not allowed to produce here". She points to the cheap poultry meat and battery eggs that are still coming into the EU. "An uneven playing field for Dutch farmers and consumers is being fooled", referring to the battery eggs that are processed in food products.

Jaco Geurts acknowledges that the controls in the EU are not watertight. "Battery cages can still enter the EU. It can be a small percentage, but still too much. The controls in Rotterdam are strict, but then they will come through Antwerp or Bremen. I am also concerned about the American chlorinated chickens that can enter the EU via the United Kingdom after Brexit."

Geurts suggests making agreements with supermarkets to get more Dutch poultry meat prominently on the shelves, as is currently happening with pork. De Haan does not believe in that. "Such agreements are difficult to check, every cheap product will find its way into the chain. The policy simply has to be more decisive and the consumer must have more clarity about which product he is buying."

Don't get stuck in the past
While De Haan and Geurts soon appeared to agree in broad terms, the confrontation between MOB leader Vollenbroek and FDF chairman Mark van den Oever promised more fireworks. The debate certainly became sharper, but it didn't really crackle. They were given the following proposition: in the Netherlands there is no more room for even more nature. 

Vollenbroek pointed out that 13% of the Dutch surface is now a Natura 2000 area, which also includes the IJsselmeer and the Wadden Sea Region. "This puts us below the European average. The EU is even aiming for a percentage of 30%. So we have to move towards more and more robust nature."

Van den Oever has an appropriate solution for this: "Polder quickly into the Markermeer and turn it into a beautiful nature reserve. There should be more nature in the west of the country." Because the leader of FDF sees the desire for more nature primarily as a Randstad urge. "In the west it is nothing but concrete and asphalt. In the east, however, it is still plenty of green."

Europe must hold up its own pants
According to Vollenbroek, the agricultural sector must be "completely overhauled". He also wants to get rid of cheap imports outside the EU. "Europe must hold up its own pants. The Netherlands must return to fully land-based agriculture and partly circular agriculture. And the prices for farmers must rise. That is where the solution lies."

Van den Oever agrees with this better price for farmers and an export ban from outside the EU. He believes that technological solutions in particular can help agriculture to achieve environmental measures. Certainly if the farmer gets more value for his product there. Van den Oever has full confidence in the Farmers Friendly concept that FDF wants to set up together with the supermarket umbrella organization CBL. This should guarantee the participating farmers a surcharge on their product.

Finally, Vollenbroek dismissed the agricultural sector with a warning. And that's that the nitrogen law is just the beginning. "The climate laws that advocate a 2% reduction in CO50 emissions within 10 years will have a much greater impact on agriculture and horticulture. The sector should really realize that and not linger in the past."

Farmers in uncertainty for too long
In the next debate, Laura Bromet, member of parliament for GroenLinks, also referred to the challenge of the climate law. "The CO2 emissions must be reduced by half, but I notice that farmers really have no idea what is coming at them. Farmers have been in uncertainty for too long. Clarity needs to be made."

Bromet entered into a conclave with Bart Kemp, chairman of Agractie, about animal welfare with the statement: Animals are doing well in the Netherlands. Stop projecting human experience onto the animal. Kemp especially pointed to rules such as compulsory grazing, which do not always please the animals. "We can sometimes meet the basic conditions of health, rest and well-being for animals much better indoors than outdoors. Livestock farmers sense this and know it better."

Bromet was given the space to avoid this discussion and to react immediately with stables where the 'animals are crammed together.' In the discussion that followed, Kemp was able to implicitly elicit that GroenLinks does not think mega stables (or comfort stables, as Kemp used to say) is bad by definition. "I want to get rid of the frame that mega stalls are bad and small stalls are always good. You see farms where animals are having a great time, but you also have companies where animals are less fortunate. The Netherlands must distinguish itself in quality and want to be a leader in animal welfare. " 

To achieve this, the farmer must also receive a higher price for his product and cheap imports from outside the EU must be curbed, says Bromet. According to her, food can become more expensive if, on the other hand, the cabinet ensures that food is affordable for every Dutch person. For example, by increasing benefits. "A higher price in the store does not have to go through the farmyard."

cost 3 globes
The highlight of the afternoon was the debate between D66 MP Tjeerd de Groot and Jan-Cees Vogelaar, chairman of the Mesdag Dairy Fund Foundation. They had the proposition: Fewer animals in the Netherlands? The world demands more than less food. Although firm language was occasionally spoken, especially by Vogelaar, it was a discussion without the tension of sitting on the edge of your seat.

Vogelaar mainly measured De Groot on his in-depth knowledge of the food chain. Many people do not know their own food chain. For example, he countered an argument by De Groot in which he stated that one third of the available agricultural land goes to animal feed. By limiting this in favor of human consumption, there is a profit, says De Groot. "I completely agree, Tjeerd", Vogelaar responded, "and that is exactly what we are already doing in the Netherlands. Residual flows from human consumption go to livestock farming, such as soy meal."

De Groot called Vogelaar's motivation that the current agricultural system works well 'complete nonsense'. According to him, half of the animal feed is recycled, because it concerns residual flows. "Soy and maize are grown for the other half. That is not too sustainable and must mean a shrinkage of the livestock. We have to move to a livestock that produces as much fertilizer as vegetable cultivation needs." 

What man eats does not come back
Vogelaar reacted strongly with "the cycle is a farce. You yourself are the hole in the cycle. What people eat does not come back. Agriculture is always intervening in the ecosystem, what you get out of it you have to bring back. That's why we talk about balanced fertilization, not about recycling." 

According to De Groot, Dutch agriculture can still play a significant role in agricultural production after the transition he envisages. "There is certainly still enough production, for which the farmer has to get a higher price. It is a myth that we have to feed the world's population."

De Groot calls the package of €6 billion that agriculture minister Schouten has reserved for the transition of agriculture on the nitrogen dossier 'unprecedented'. "A lot is being invested in agriculture. We can just be proud of that. But this is still a first step." Vogelaar calls it a drama. He points to research by the Agrifacts Foundation, which shows that Dutch agriculture already meets the 2030 standards according to European calculation models. "At all Natura2000 areas. And now the PAS detectors are out in the cold and banks are withdrawing the financing."

With an example of the type of milk De Groot buys in the supermarket (his answer: the most expensive), Vogelaar wanted to make it clear that the price or the brand does not always reflect the sustainability of a product. "The citizen wants everything, but the consumer makes other choices. That will destroy the farmer."

Confused consumer
To conclude, Joris Lohman, co-founder of Foodhub, discussed the proposition with VVD MP Helma Lodders: a different food system? That means a higher price for the consumer. According to Lohman, it is too easy to demand a higher price from the consumer. That is not to the advantage of the farmer. "Because a higher price from the consumer never reaches the farmer 1-on-1."

In addition, consumers are also confused by all the different images they receive about sustainability, making it difficult to consciously make sustainable purchases in the supermarket. "Putting accountability on the consumer is not the most important step." Lodders emphasizes that the honest story must be told. "Is an organic potato better than conventionally grown? That is not an option for me. We also have to call supermarkets to account for clear communication."

According to Lohman, a better earning capacity for the farmer must be paramount in making food policy more sustainable. "With that you can bring about changes. I notice that everyone in this debate agrees. "But we are somehow opposed to each other. He sees the solution in improving the socio-economic position of the farmer." Exactly the thought of Sicco Mansholt at the time."

The Netherlands must be at the forefront of innovation in this respect, but not only in terms of intensifying production and/or lowering the cost price. "But especially in quality. Politicians must lay down fewer rules, but above all create preconditions where entrepreneurs are challenged to comply with them."

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Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

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18 comments
17 October 2020
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/agribusiness/artikel/10889704/iedereen-is-het-eens-boer-moet-meer-earen]Everyone agrees: farmers should earn more[/url]
It seems that the most important function of the Dutch farmer is to facilitate the earnings model for the periphery. We are not allowed to receive the financial profit, but society's criticism of the production method is.
Taking so many risks to create money and employment for others. It's actually madness.

I will never forget it the foreman of nevedi said that the production of animal feed actually had no negative impact on the environment, according to him the problem lay with the buyers of the feed. When you say that you have a record in front of your head it's just ridiculous. That is precisely the reason that everyone believes that the farmer should earn more, but no one knows how, all parties want to protect and maintain their own revenue model. The farmer is the last item who can pay for the failure costs of the entire sector.

These parties want to change the world without changing themselves, so I expect that everything will end up on the farmer's plate again.
Joep 17 October 2020
For pork, for example, the Netherlands is mainly an export country. We see that feed suppliers are investing heavily abroad. They already did that 20-25 years ago, cranking up production at our competitors and in our sales markets abroad comes at the expense of the volume that can be produced in the Netherlands with a decent margin. This is becoming more and more of a problem.

The major disadvantage is that the capital that is used to make these investments is earned by and from the Dutch farmer. The money not only disappears from the farmyard, but also from our land.
Our wealthy chain partners are eating us dry.

You also see that more and more tenants are becoming critical of their employers who invest abroad. They also see that their jobs are in danger, because this development moves the production of pork, for example, abroad and their jobs become redundant.
V23 17 October 2020
In the near future, the earning model for the farmer will be derived from the importance that the farmer has for the Dutch agricultural complex. The farmer is the most important link, without the farmer the wealthy chain partners earn nothing. That interest will be put to better use. The gray mice of the periphery will have to believe it anyway.

Google the power of the agrocluster.
Jan 18 October 2020
There is currently and always enough money being made in the agricultural sector. It just doesn't get to the farmer. The farmer is used by chain partners to shift the costs of failure. Most links function poorly as conduit that claim to provide added value. The added value does not reach the farmer or does not exist.

You see it in the meat trade and slaughterhouses that are currently failing to guarantee sales channels. Farmers are always encouraged to organize a constant and uniform supply of pigs. Now that slaughterhouses fail to guarantee sales opportunities, we speak of traffic jams in pig stables, with the result that the slaughterhouses and meat trade are lowering their purchase prices.

Sufficient money is earned, it just does not end up with the farmer. The solution for this will come through a transition that will take place at chain partners, they must provide added value. Not only on the sales side but also on the purchasing side, eg feed suppliers.

Also at Feed Suppliers, entire assets are spent on marketing and an army of commercial advisors/account managers/feed sellers. These costs are made to increase the market share of the feed factory, it costs a lot of money but it is of no use to the farmer. These are costs that are not included in the quality of the feed, you will not find them in the feed.

The chain partners will go through a transition by actually providing added value, that's where the solution lies. When this value ends up with the farmer, we as a farmer can also ensure that we can further develop our production method.

With 18 October 2020
You see it in more and more municipalities, they are at or over the limit of the surface that may be built on within the municipality. As a result, governments are in a hurry to demolish buildings.

If new buildings are to be built, they will eventually have to be demolished. Empty agricultural buildings could offer a solution here.

By demolishing buildings, the farmer thus creates enormous value for the economy and quality of life of the municipality.

Politicians are increasingly citing the problem of revenue models within the agricultural sector, everyone earns from the farmer except the farmer himself. Products that a farmer has to buy are outrageously expensive. Products that a farmer sells are 'worth nothing', but as soon as the products have left the farm, they go upside down a number of times.

Let governments set a good example and ensure that the value that the farmer creates by demolishing his empty buildings also ends up with the farmer. This extends the farmer's business model.

It also solves many problems with regard to crime in rural areas. Linking a revenue model to the demolition of stables improves the financial situation of the farmer, which removes the incentive to deal with criminals.

Now you see, for example, that provinces buying land from a farmer change the destination to agricultural development area and sell the land again for at least double the amount to a livestock farm that needs space for business development. For example, money continues to disappear from the agricultural sector, and the financial situation on the farm deteriorates.
Subscriber
mt 18 October 2020

A lot of money is being earned on the back of the agricultural entrepreneur!

It is outrageous that we run all the risks, give away products below cost! After that, the big money is earned ... look how those men drive it ... one Mercedes even bigger than the other ... Plus a commercial Tesla ...
Biesbos 18 October 2020
I think just about every feed supplier is in the quote 500 so there is money enough there.
Subscriber
Dirk 18 October 2020
the raw materials we produce are not scarce and therefore cheap.
40c plus??, that's only temporary, because scarcity is quickly dealt with by ourselves (producers), due to the intended pursuit of profit
the profit goes to the trade and all others who give it added value, such as, for example, refined selling in a shop.
make no illusions, this is never going to change, always has been.
producing raw materials that are scarce, that is the solution.
anyone have an idea?
growing potatoes is not a good alternative.
(re)training to another subject perhaps?
let's hear something.
beetles 18 October 2020
In the future you will have more revenue models in which agriculture provides scope for economic development. In the form of stopper schemes or external netting of latent space, for example. The nitrogen emissions and buildings that disappear on the farm can be reused elsewhere (possibly after skimming).

It is a great alternative, especially when farmers earn poorly. For example, contraction can yield double money due to shrinking supply and higher selling prices.
Subscriber
Southwest 18 October 2020
beetles wrote:
In the future you will have more revenue models in which agriculture provides scope for economic development. In the form of stopper schemes or external netting of latent space, for example. The nitrogen emissions and buildings that disappear on the farm can be reused elsewhere (possibly after skimming).

It is a great alternative, especially when farmers earn poorly. For example, contraction can yield double money due to shrinking supply and higher selling prices.
Which economy my best? If the corona ghost wants to household for a while, that thins out nicely.
Mans 18 October 2020
@Dirk, there are a lot of products that are not scarce and still have a price, including products that a farmer has to buy. The point is that suppliers call it added value that products are always available, and that is worth a plus on the price according to them.

Farmers have always been encouraged to pay surcharges on market prices, to provide a constant and predictable supply of a high-quality product. That is the added value that the farmer provides. Once the stimulus had done its job, the need for high market prices diminished. Some farmers are not yet entrepreneurs enough to negotiate a good yield or purchase price.
beetles 18 October 2020
A fellow student who was a dairy farmer, just like some of his neighbors, sold the company to a project developer. There are now a number of logistics centers on the site, which is booming here.
bigg 18 October 2020
When the representatives of suppliers and buyers get back into the car with good sense after a conversation ........ you did not do it right ... put more pressure .......
Subscriber
Dirk 18 October 2020
No Mans, all raw materials and products that are not scarce are cheap.
Farmers (including myself) have no power to keep their products scarce.
If the volume of the production of agr. raw material decreases noticeably, this does not necessarily mean a higher milk price, after all, in the current situation, 80 % is exported. The gap that arises in our export countries is effortlessly taken over by others. Have a look at how the ao. milk production in Poland, Ireland etc. is increasing.
Hard work for little is of all times for a farmer. Will stay that way.

In any case, our municipality would like to have our nitrogen rights and that does offer perspective.
I would say: all look in that direction, you're crazy if you don't
optm 18 October 2020
Is what you say correct man, you see it as one of the best profitable sectors in greenhouse horticulture. The majority of what is produced for this is also exported. Yet they achieve very high returns.
person in hiding 19 October 2020
Take horticulture as an example and do just like horticulture
Talk to each other and form strong parties.
First start a conversation like a tuiders club or corporation
At least that doesn't make you stupid.
The example is much closer than you think I think.
Good luck.
Subscriber
John Lapwing 20 October 2020
The Rabobank is 100% responsible for the destruction of animal husbandry, see article in new harvest of Saturday, October 17, 2020 by Merijn Dekkers. advice look for a good advisor to mainly assess older mortgages, then rabo stroppenpot is so empty a fruit grower without a successor
Klover 22 October 2020
@Jan Kievit, it also occurs in fruit cultivation. Suppliers and customers of the farmer who earns money from the Dutch farmer set up entire integrations with our competitors or sales markets abroad. Direct competition with the Dutch farmer.

Starting up and expanding production at our competitors abroad where there are no strict laws and regulations. Initiators of these practices make the farmer's candle burn on both sides. (See link below)


https://www.agroberichtenbuitenland.nl/actueel/nieuws/2018/12/21/boomkwekerij-fleuren-ziet-afzetkansen-in-kazachstan
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