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News Bill Schouten

Farmer gets more to say on the market

20 November 2020 - Redactie Boerenbusiness - 8 comments

Farmers and horticulturists have more to say on the agricultural market. At least, that's what agriculture minister Carola Schouten is aiming for with a new law that she has sent to the House of Representatives. Unilateral changes by the customer of the delivery conditions? That will no longer be possible.

The Ministry of Agriculture said in a statement. The Bill on unfair trading practices in the agricultural and food supply chain is intended to strengthen the position of the farmer in the food chain. Because farmers and horticulturists have a weaker negotiating position vis-à-vis large and concentrated market parties in the chain. For example, they can easily be put under pressure to accept discounts, the Ministry of Agriculture explains.

The bill will ban 16 commercial practices that farmers, horticulturists, but also fishermen and other suppliers of agricultural and food products (such as meat processors, dairies and wholesalers who supply to retailers) sometimes have to deal with. Examples of such unfair commercial practices that will soon be prohibited by law are the short-term cancellation of delivery of perishable products by the customer and the unilateral change of the delivery conditions by the customer (such as volume, quality standards or prices).

Food suppliers will soon be able to denounce unfair trade practices to the Netherlands Authority for Consumers and Markets (ACM). The bill also offers the Minister of LNV the opportunity to appoint a low-threshold disputes committee, the ministry reports. The law must enter into force on November 1, 2021.

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8 comments
Subscriber
AJ van Woerkom 23 November 2020
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/agribusiness/artikel/10890137/boer- Gets-meer-te-vertellen-op-markt]Farmer gets more to say on the market[/url]
Would like to see which 16 trade practices it covers.

In order to get more information on the market, a lot will have to change, perhaps among the farmers themselves as well.

The market must be organized differently, otherwise the mop with the tap will remain open.

There are two important parties and these are the consumer and the producers and the market must be facilitating. Now both are facilitators for the market and that should encourage people to think.

Where did something go wrong and how do we turn the tide and who do we need?
Subscriber
Skirt 23 November 2020
With this law, the customer will give a supplier his way once, but forget that you can be his supplier again next time.... someone else for you.
Roy 23 November 2020
IDK Kjol, all symbol politics that is of no use to anyone. Schouten has done nothing for the farmer. Nitrogen nonsense and giving the nature lobby its way, on the other hand, has succeeded.
Vb 23 November 2020
The farmer facilitates the revenue model for the entire agricultural sector.
The failure costs (rising to a negative margin of sometimes as much as -70%) of the entire chain are passed on to the farmer. That is why, on average, a farmer earns too little.

The reason why other parties earn well and even belong to the very richest in our country has the same reason as why farmers earn too little, they can pass on their failure costs to the farmer.

If the farmer only had to pay for his own failure costs, the revenue model would already be good.
Subscriber
AJ van Woerkom 24 November 2020
What do I regret? We know well how to point out what is wrong with the current system, but where are the people who see opportunities to tilt the system?

People don't think from impossibilities but think from opportunities, come on.
postal mail 24 November 2020
That's right from Woerkom and eg, you see the same problem over and over again. The farmer pays the costs of the mistakes in the chain. Even when farmers work on a contract basis, the contracts are broken, so that does not seem to be a solution anymore.

Our chain partners work with a revenue model that works on the basis of volume (mass is cash register) whereby the failure costs are scrubbed to the farmer.

For the farmer, there is more cash register, supply and demand due to less mass. These two things bite each other, the interests are opposite.

The problem is that the pig cycle we used to have no longer exists. In addition to bank financing, farmers are financed by suppliers and buyers in the event of difficulties, so that these suppliers and buyers maintain their earning volume. This often means low prices for the farmer.

In the pig sector, the warm remediation and the stopping scheme will have a corrective effect on the absence of the pig cycle. Farmers who were unable to sell their business due to buyers' lack of prospects for the future or to terminate it on their own, are now finding a way out. This is positive for those who stay, there will be more room on the fertilizer market and suppliers and buyers will have to offer more attractively in order to retain sufficient volume, they will have to get out of their lazy chairs.

In view of the election programs, many more buy-back schemes will follow. The difference with the classic pig cycle is that the production that disappears from buy-out schemes permanently disappears.
24 November 2020
The Dutch agricultural sector invests the money and the knowledge earned and gained from the Dutch farmer with our competitors abroad and in our foreign markets, we finance our competitors abroad through these companies, where no strict laws and regulations apply.

Investing is mainly done by the wealthy Dutch periphery (example, google: Investing in the pig column in Hungary, Romania, Ukraine and Russia)

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
Subscriber
Skirt 24 November 2020
wrote:
Just look at Canada, where the French fries growers are united and work very directly with the industry, which provides a nice stable income stream. Furthermore, there are no free growers there, the table potatoes are also strictly regulated (by the government) and you are not allowed to just fill a corner larger than your backyard with potatoes. Without being connected and without a contract, all doors remain closed.
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