Interview Dirk DeLugt
'Providing growers perspective is the most important thing'
Cosun got through the current corona crisis well as a group in 2020. Behind the figures, Dirk de Lugt, chairman of the cooperative, can see the concerns and tensions among the arable farmers about all the challenges that await them. "It is important that we as Cosun can quickly offer our members prospects for their business."
De Lugt was able to present positive figures on Thursday (11 February). All business units - Cosun Beet Company (sugar), Sensus (inulin from chicory), SVZ (fruit) and Duynie (feed) - showed black figures for 2020. Even the troubled chip company Aviko made a modest profit in the, to say the least, dynamic potato year 2020.
This does not alter the fact that there are great concerns among arable farmers about their future and all the challenges that lie ahead for them in the coming years. The turbulent agricultural markets, tight financial positions, the bottlenecks in crop protection and all kinds of other regulations from the government. In an interview with Boerenbusiness De Lugt says he realizes that it is difficult for arable farmers.
How do you look back on the past year?
"The signs were good at the beginning of 2020 and a beet price of well above €40 per tonne seemed feasible. The sugar price was on the rise and Aviko was heading for a good result again after a record year. Sensus, SVZ and Duynie also achieved good results. Corona however, threw a spanner in the works. The first lockdown in particular has had a significant impact. Fortunately, we saw recovery again in the second half of the year. This year too, we are still dealing with the consequences of the corona crisis. In the longer term, the prospects are good. To keep beet cultivation profitable in the Netherlands in the long term, we have to move towards a structurally higher payment price of more than €40 per tonne. We would have achieved this price without the corona crisis."
What will the beet acreage do next season?
"We aim to keep the beet acreage stable and in line with our processing capacity. We don't want to be surprised by a sudden growth - as in England - and the campaign will run until February. The beet acreage will be slightly smaller than this in the coming season. last year. This year, growers can sow 102% of the LLBs (membership certificates), this was 2020% in 105. There has been some trade in the LLBs in recent months. Some growers with quite a lot of beet in the crop plan have reduced the cultivation somewhat However, there is still enough enthusiasm for beet cultivation and the LLBs have quickly found a new owner."
Is the Dutch ban on neonicotinoids a threat to beet cultivation?
A level playing field between European sugar factories is a concern. Our neighboring countries have an authorization for Cruiser SB. This is only subject to such strict rules that the percentage of the area on which coated seed is used is small. In Germany, for example, it is only permitted in a limited number of federal states and in Belgium only 10% was sown with coated seed last year due to the restrictions on subsequent crops. Fortunately, last year we received an exemption for Batavia and Closer. We hope to get an exemption for these products again this year to combat aphids and thus the yellowing virus. The environmental gains made from the ban on neonicotinoids appear limited. Instead of a seed treatment you now have to spray a number of times."
"A bigger problem than the differences in authorized resources is the coupled support for beet cultivation in a number of Eastern European countries. This is and remains permitted within the Common Agricultural Policy (CAP), but it has a major impact on mutual competitiveness. Local sugar producers indicate that they desperately need this support to keep the cultivation profitable, and this is not expected to change in the coming years."
What is the role of breeding in reducing the use of plant protection products?
"Crop breeding plays an important role in reducing the use of crop protection products. However, this is a long process. It can take as little as 15 years before a new variety is developed and can be introduced. With new 'gene editing' -techniques such as Crispr-Cas could significantly shorten that time to, for example, 5 years.In other parts of the world such as America and Asia, these techniques are also being used in medical science.In European agriculture it is use is still prohibited. We must ensure that we do not fall too far behind in this area in Europe and cannot catch up anymore. Plantum breeders' organization lobbies for the approval of these new techniques. Where possible, we support this from Cosun."
There is a lot of talk about circular agriculture. What is Cosun doing about this?
"Circular agriculture is an important spearhead in LNV's policy. With Betacal, for example, we offer growers the opportunity to return nutrients that are left over from sugar production to the beet fields. Unfortunately, there is still too little attention in the manure policy for recycling. harvest of the crops, more minerals are removed than can be supplied. That will go well for a few years, but we are in the process of eroding soil fertility. More attention should be paid in policy to replenishing minerals that are product to be disposed of."
What challenges do you see for the arable farming sector in general?
"Agricultural farmers have the feeling that they are already doing a lot to make their business operations more sustainable, but are not being appreciated for this. Matters such as the increasing regulatory burden, climate change and the decrease in the available crop protection products cause tensions. It is difficult for individual farmers to to respond to these changes. In addition, the earning capacity of the sector is under severe pressure. The situation is therefore somewhat similar to that of the early 90s. We are in a transition period and must do everything we can to offer farmers perspectives again ."
How can Cosun contribute to providing perspective?
"We have recently seen a revival in grain prices. Hopefully this will continue, because usually a high grain price is reflected in other arable crops. As Cosun, we also have an interest in farmers being able to earn a good income. It is important that we give growers perspective. A good price for the products is essential in this. By focusing not only on sugar production, but also on other activities such as valorising the residual flows, we can improve the yield of beet cultivation. started years ago and it is now slowly starting to pay for itself.”
"Cosun can also play a role in research into more sustainable cultivation methods and techniques. It is difficult for individual farmers to get started. As a cooperative, we can bring parties together. The demand from society for vegetable protein is also something that is true. Cosun sees opportunities. For example, we are investigating how we can extract large-scale protein from beet leaves. The basic principle is that it is workable and profitable for the beet growers."
Jurphaas Lugtenburg
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