Boerenbusiness Agricultural Congress
'Scaling up is not the only solution'
"The farms that will continue to exist in the future are not necessarily the largest, but rather the specialized or extensive entrepreneurs." This is what Cor Pierik (CBS) said on Tuesday 18 December at the National Economic Agricultural Congress in Amersfoort.
It should come as no surprise that the number of farmers in the Netherlands is declining rapidly. Since the 50s, the number of companies in the Netherlands has shrunk by a factor of 8 to approximately 60.000. During the same period, production increased by a factor of 10. According to Pierik, these figures symbolize the increase in scale in Dutch agriculture.
It is striking, according to Pierik, that the number of dairy cows in 2018 is still the same as in the 50s, but that is the only similarity with then.
Mid-sized companies are disappearing
The CBS figures show that it is mainly the medium-sized companies that are leaving. "These are the companies with a standard revenue between $100.000 and $250.000." The group of companies with a standard revenue above €1 million is growing. "In 2018 there are almost 5.000, but together they produce 50% of the total production."
There are also just under 20.000 companies with a standard revenue of less than €100.000, but those companies only represent 3% of the total production. These are often entrepreneurs who are not (completely) dependent on the income from their agricultural business.
Increase Yields
Although size is necessary, according to Pierik, scaling is not the only key to survival. "The farmers of the future are not necessarily the largest, but rather the specialized companies." Pierik is referring to the cost price, which probably cannot be reduced much further.
The challenge is to increase revenues. According to the agricultural economist, this is possible because supermarket prices in the Netherlands are below the level of neighboring countries in Europe. "The stayers are the group of farmers who can adapt to their environment and therefore have social support," says Pierik.
Tim Roetman
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