No agricultural sector in the world has as little impact on the environment as in the Netherlands. This is what ABN Amro concluded on Tuesday 1 August in the report 'Agricultural: Circular from home'. Because residual and waste flows are used, CO2 emissions are reduced and food waste is prevented, the sector scores highly.
ABN Amro calls circularity, the cycle, as a tradition of the Dutch agricultural sector. Raw materials are used economically in order to be able to produce efficiently. Keeping the environmental impact low starts with a high yield per hectare. It is nowhere in the world that high.
In addition, the use of plant protection products has more than halved in 2015, compared to the use in the 80s. The use of antibiotics in livestock farming decreased by almost 2009% between 2016 and 65. More biological resources and natural enemies are also being used.
Very low CO2 emissions
Residual products are an important raw material flow for the animal feed industry. Plant residues are also used as raw materials for building materials, chemicals and plastics, among other things. Biomass is used to reduce CO2 emissions. More than 42% of all renewable energy in the Netherlands is generated by farmers, while they themselves use barely 5% of all energy. Sensor technology and data analysis helps companies to improve processes.
Financing differently
The lender now mostly finances individual agricultural companies. It sees opportunities for chain financing in the future. This change is partly due to the circular economy. That requires a different way of financing. According to ABN Amro, the agricultural sector still offers a lot of prospects for profitable revenue models. This is also bearing fruit worldwide. By limiting waste and using residual products, costs are reduced and yields increased.
Support contractors
Contractors are an important link in agriculture, according to the bank. They collect a lot of data with their machines. This data can be linked to crop data, which is recorded by, among other things, drones and satellite images. This should ensure that crop protection products and fertilizers are used more efficiently and accurately. The bank calls this 'Smart farming as a service'. In its own words, it also wants to contribute to this.
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