Annual overview 2017
The agricultural highs and lows
2017 will not go unnoticed in the books for the agricultural Netherlands. In October, for example, the long-awaited Minister of Agriculture, Nature and Food Quality arrived in the form of Carola Schouten. Tears also flowed, for example because of the fipronil affair. An overview of 2017.
1. Poultry sector in tears over fipronil
The Dutch Food and Consumer Product Safety Authority (NVWA) warned at the end of July against eggs that would be contaminated with the substance fipronil† The national press dived in and talk shows had enough to talk about to fill the 'cucumber season' in a high-profile way. The affair was a real nightmare for the poultry sector and the image of the Dutch egg.
Especially for poultry farmers who purchase services from ChickFriend; the company that unlawfully used the substance to combat red mite. They had to destroy millions of contaminated eggs. At the end of 2017, some companies are still locked up. The damage is estimated at tens of millions of euros. The ChickFriend drivers were arrested on August 10, but were released in October.
The role of the NVWA was criticized by many, including the Hague politicians. This is because the authority had been aware for months about the possible unlawful use of fipronil on poultry farms.
2. Carola Schouten new Minister of Agriculture
The desire of many farmers to reintroduce the Ministry of Agriculture was officially confirmed on Thursday, October 26. At the time of the formation process, it was buzzing with the rumors† At first yes, then not, but eventually there was a Ministry of Agriculture, Nature and Food Quality (LNV). The post in the Rutte III cabinet has been transferred to Carola Schouten (ChristenUnie). She will be administratively responsible for all agricultural activities until 2021.
Agricultural Netherlands responded happy and relieved† After 2 state secretaries in a row, the agricultural sector is again represented by its own minister. For many a token of appreciation for the agricultural sector.
3. Brabant will accelerate the greening of livestock farming
Friday 7 July was 'D-day' in Brabant, because the States of Brabant voted on that day about the future of livestock farming. They agreed with the provincial government's policy plans to accelerate the sustainability of livestock farming. As a result, pig and dairy farms need to modernize at an accelerated pace, which will likely force some to shut down.
On the day itself, hundreds of livestock farmers came to the provincial government of Noord-Brabant in Den Bosch to protest against the plans. However, the high turnout did not prevent the new environmental rules from being introduced immediately.
4. June and July very dry months for arable farming
In the months of June and July, northwestern Europe (Belgium, the Netherlands and northern France) was ravaged by severe drought† There was so little rainfall that arable farmers had to pull out all the stops to prevent the crops from drying out. In Belgium, the drought even got official status.
(Text continues below the photo)
The irrigation systems were running at full capacity in June and July.
The precipitation shortage in northern France caused the departments of Nord and Pas-de-Calais to limit water consumption. In The Netherlands The south-west of the Netherlands (Zeeland) was particularly affected by the drought. Due to the water shortage, seed potato yields in particular were disappointing in 2017. The other crops, including ware potatoes, made up for the joint damage in August and September.
5. NRC reveals manure fraud
In November, the agricultural Netherlands was startled by an article NRC Handelsblad about manure fraud† According to NRC, 61% of the fertilizer traders are said to have 'dirty hands'. According to the sector itself, it would only be a handful of bad apples that ruin it for the rest. In addition, the percentage would be so high, because even the smallest negligence has been labeled as fraud by the NRC.
As a result of the publication, Carola Schouten, then brand new Minister of LNV, was called to account by the Senate. Schouten himself put the ball back to the manure sector and demanded a a plan of action to combat manure fraud. At the end of December, Schouten said at a members' meeting of the Producers Organization Pig Farming (POV) that livestock farming itself is responsible for the to fight of manure fraud.
6. End of sugar quota
After much political haggling, the European sugar quota withdrawn by the European Commission (EC) on 1 October this year. For no less than 50 years, European sugar production was curbed by this measure. From 2017, a new era will dawn for European sugar production and the area expansion ahead.
(Text continues below the photo)
In 2017, the European sugar quota came to an end. The Dutch sugar sector is pleased that the production-limiting measure has been dropped. According to Gert Sikken, agricultural director of sugar cooperative Suiker Unie, the expiry of the sugar quota is more an opportunity than a threat. As an alternative to the quota, Membership Certificates (LLBs) have been introduced in the Netherlands by Cosun. This is in order not to completely abandon beet cultivation in the Netherlands.
7. Milk price rises above €40
After 2 disappointing years, the milk price in 2017 at various dairy processors again exceeded €40 per 100 kilos. This psychological limit is seen as a price level at which most dairy farmers can write green figures. On balance, some milk prices rose by almost €10. The price increase was particularly strong in the summer months. A record high butter price is one of the reasons why dairy farmers quickly increased milk prices.
(Text continues below the photo)
After 2 difficult years, the milk price rose again this summer above €40.
Thanks to the good milk prices, the Dutch dairy sector achieved a record yield of €68.000 per unpaid annual work unit (aje). Incidentally, it is not expected that the milk price will in 2018 continue to charge above €40 for a long time. This is because the price of various dairy products (cheese and butter) has been significantly depreciated in the last months of 2017.
8. Glyphosate extended for at least 5 years
Thanks to the German Agriculture Minister Christian Smith the use of the controversial substance glyphosate is allowed in the European Union for at least another 5 years. Schmidt decided to vote in favor on November 27, despite Chancellor Merkel asking the agriculture minister to abstain. This created a narrow majority that voted in favor of granting glyphosate.
At an earlier stage (October), an extension of 10 years was still boycotted by the European Commission (EC). This is because Germany abstained from voting at the time. French President Emmanuel Macron resigned in early December negatively elated on a 5-year extension of glyphosate. He advocates removing glyphosate from the list of drugs before 2020.
9. Phosphate didn't let dairy farmers go
Throughout 2017, dairy farming was held in the grip of phosphate, as part of the derogation for broader manure standards. What stands out in this 'headache file' are the phosphate reduction plan and the lawsuits brought by dairy farmers against the Dutch state.
The 3 measures from the phosphate reduction plan (the LU scheme, the feed track and the stopper scheme) should provide for a decrease of 8,2 million kilos of phosphate. This was already on April 1 of this year 4,5 million kilos realised. Due to the LU scheme, the livestock of many dairy farmers has been considerably thinned out; tens of thousands of cows have been slaughtered and a lot of young stock has also been exported.
The beginning of May the phosphate reduction plan was put out of action for a select group of dairy farmers. In August, the reduction plan was also 3 other groups shelved. Later judged the court that dairy farmers still had to remove cattle. It was only at the end of 2017 that it became clear that the European Commission (EC) gave the green light for the introduction of the phosphate rights system as of 1 January 2018.
10. Pig farming rocked by barn fires
According to Wakker Dier, more than 200.000 pigs died in barn fires this year. In total, more than 25 samples were burned. Especially during the summer months there were a striking number of barn fires. So much that the POV decided to launch an independent investigation, alleging a pattern.
The most eye-catching barn fire was in pig farming 'Knorhof' in Erichem (Gelderland). About 20.000 animals died in this barn fire in July. The company is owned by the Dutch pig farmer Adriaan Straathof, who is known as one of the largest pig farmers in Europe.
11. Dramatic Bad Potato Price
Never was the potato yield (consumption) in the EU-5 as big as this year. Initially, the NEPG (North-western European Potato Growers) estimated the yield at 27,9 million tons of ware potatoes. Later, the NEPG adjusted the harvest forecast to a record yield of 28,9 million tons.
(Text continues below the photo)
This year saw record revenues in the EU-5. The potato price is yielding to this large supply. Since the beginning of September, the futures market (EEX) has been moving below €5 per tonne. On the regional stock exchanges (physical market) there were even weeks this autumn when no listing was released. This is due to too few transactions.
It can be said that there is hardly any room for free potatoes this year and that the yields are far below cost price. Partly because of this, arable farming dangles at the bottom of the income estimate from Wageningen University and Research (WUR).
Wouter Job
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
