Cosun

Interview Arwin Bos (Cosun)

'Water quality is a top priority at Cosun'

5 December 2023 - Eric de Lijster - 10 comments

Arwin Bos has been chairman of Cosun's board of directors since this summer. The arable farmer from Nieuw-Vennep takes over from his predecessor Dirk de Lugt during a fascinating period. Cosun is in the midst of implementing its plant-based strategy, but in this process, its members and its members are encountering challenges in politics and on land. In an exclusive interview with Boerenbusiness Bos mentions these challenges. It doesn't detract from his enthusiasm. "We are taking great steps."

For Cosun, the autumn and winter months are the busiest period of the year. The sugar beet processing campaigns at Cosun Beet Company and chicory at Sensus are running and Aviko is busy processing the chip potatoes from the new harvest. A new round of circle meetings will soon start, in which the board and management of the cooperative food group will update members on current developments and discuss with them the course to be followed. Arwin Bos, the new chairman of the board of directors, is looking forward to this, he says at the head office in Breda. "As Cosun, we want to have intensive contact with our members, after all, they are the owners of our company," says Bos.

For Bos it will be the first tour of the members as foreman of the largest arable farming cooperative in the Netherlands. The arable farmer from Nieuw-Vennep (North Holland) succeeded Dirk de Lugt last summer. It is certainly not new for Bos. Bos has gained extensive experience as a director over the past seven years, including the last three years as vice-chairman. "The meetings are a very busy period for us, but very valuable. Our aim is that every member feels heard and can give his or her opinion about Cosun. That is the strength of our cooperative and I consider it an honor to contribute to be allowed to deliver." As chairman of the Cosun cooperative, which will celebrate its 125th anniversary next year, Bos describes himself as 'being modest, goal-oriented, knowing what is needed and focusing on results'. "My role is to ensure that the relationship between the cooperative and the Cosun companies remains good. To show what we as farmers want."

Serious concerns about the sugar beet and potato harvest
The agenda of the circuit assemblies will undoubtedly include this year's weather extremes, developments in politics and the Unlock 25 strategic program that Cosun is implementing. Bos is seriously concerned about crops such as potatoes and sugar beets that are still growing in the field and have been ravaged by the prolonged period of rain. In addition, the past few days have included severe night frost in places. "An incredible amount of rain has fallen in the Netherlands. And the light to moderate frost last week is a major setback. It seems that not all the potatoes are being harvested anymore. For example, they are still partly in the ground at my company. At Aviko we wonder how many hectares will remain in the ground, but undoubtedly every processor does. That will have an effect on the market, but first of all it is a tragedy for the affected farmers."

The situation in chicory seems manageable at the moment. Due to the heavy rain, the delivery of chicory roots to the factory in Roosendaal did not always run optimally, so processing was postponed for a while. The situation in sugar beets is precarious. Arwin Bos mainly points to the frost that can certainly play tricks on sugar beets growing in the field. Especially now that on (December 4) 35% of the sugar beet area is still in the ground. "Night frost below 3 degrees is very tricky for the beet crop. That is why we advised our members to grub and cover as much as possible. But that was of course not easy in this short term and some farmers simply could not grub," responds Bos.

Every kilo we miss now costs every member money. That's the reality

Arvin Bosch

Cosun fears that ultimately not all crops will grow out of the ground or will suffer high-quality damage. This is a tragedy for the affected growers, but Cosun is also experiencing the consequences. Not only for the optimal processing efficiency of the factories, but also because the markets for all products (french fries, sugar, inulin) are good. "Every kilo we miss now costs every member money. That is the reality."

Positive feeling about the beet price
Lower processing yields can also influence the final beet price for the 2023 campaign. Bos knows that many members are curious about the beet price for the current campaign. In the previous year, 2022, a relatively high beet price of €68,75 per net ton of beets at 17% sugar was achieved. Given the current developments on the sugar market, members are already dreaming about a record high beet price. Bos has not yet given an indication. "We have adjusted the system for calculating the beet price last year, which makes a forecast more complicated. The beet price is partly determined by the sugar sales for the first three quarters of next year and these are still ongoing. A large part has been sold, but certainly Not everything yet," Bos qualifies. "Don't forget the high costs we have to deal with and we still have to see how many beets can be harvested and processed. But with these successes, the feeling is certainly positive."

Bos sees that the enthusiasm for beet cultivation among arable farmers is not diminishing. "The demand for LLBs (member delivery certificates, ed.) is greater than the supply. Growers are still looking for a bit of stability in the cultivation plan. It is a nice cultivation, fairly risk-free with an average cultivation balance over the years. Our real goal is to We will never again fall below a beet price of €50, even with a low sugar price. Whether we will structurally achieve that is still uncertain. But we are taking good steps."

Water quality has top priority
In addition to the developments within the Cosun group, about which Bos regularly consults with CEO Hans Meeuwis, the chairman appoints an important point for the 2024 agenda. Water quality is our top priority, and we invest a lot of time and energy in it. If you see what kind of nitrate policy has now been poured out on the sector, including with the winter crop list, we think it has very little effect," Bos points to the 7th Nitrate Directive Action Program. "But it does have a lot of impact for farmers and our cooperative." Bos looks ahead to the year 2027. The preparations for the 8th Action Program, which should come into effect that year, will start next year. "If you see which measures are on the main list for this," says Bos with a sigh. " We are very concerned about this for everyone who grows, processes or sells agricultural products. For example, you are talking about forced extensification or bans on potato cultivation on sand in the southeast. This year's calendar farming is really just the beginning."

The arable farming sector must therefore take up the challenge itself and work diligently to reduce nitrate leaching into ground and surface water. "We all really need to be more aware of the need for action. This could become the nitrogen issue for arable farming," Bos emphasizes. "We have to meet European targets that we are currently not achieving. These, just like with nitrogen, cannot be averted. The effects can be enormous. Suppose you have a company that is completely set up for potato cultivation and you will soon not be allowed to eat potatoes. grow more. That is a real danger that, I think, too few arable farmers realize. We are working hard on this at Cosun within Groeikracht, for example through research and by effectively measuring run-off. But we cannot do it alone." Innovation and technical developments are needed to find and accelerate solutions, Bos indicates. According to him, a good example is the discussion about glyphosate. "With new precision techniques we can really reduce the use of glyphosate significantly. But we still need it, especially to be able to use these new techniques. And look at Crispr-Cas, for building in resistance against, for example, cercospora and phytophthora. We won't make it without innovation. It's that simple."

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Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.
Comments
10 comments
Subscriber
sea ​​breeze 5 December 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/article/10907078/waterquality-is-bij-cosun-een-topprioriteit]'Water quality is a top priority at Cosun'[/url]
Nice article, clear vision from Cosun! Still have feeling for the members!
They may also be able to set a new course for business successors to push the banks back a notch. How? By providing young potential business successors with a star bonus or starting capital with, say, 2% interest for a maximum of 10 years. Reserve a maximum concern amount in a pot for this!
A second action is to test renure products as fertilizer substitutes and thus minimize leaching risks. In addition, the officials in the Netherlands and the EU are working on a realistic approval of these products!
Claas 5 December 2023
Think positively, but a subsidy for a loan without collateral for a business successor should come first and foremost from the leaver.
Cosun already has other payment arrangements to improve liquidity.
juun 5 December 2023
Claas wrote:
Think positively, but a subsidy for a loan without collateral for a business successor should come first and foremost from the leaver.
Cosun already has other payment arrangements to improve liquidity.
precisely the cooperative does not have to throw around money unnecessarily. I think they still want to invest enough. In addition, if a bank does not see anything in the business succession, you have to wonder whether you should want to continue.
juun 5 December 2023
but just a current topic. everyone who has seen new cards from the lnv about water quality and NV areas. with yet again nonsensical generic policies.
real grower 6 December 2023
Has anyone also seen the press release from a dismissed employee at the water board?
Water quality has been rated as either moderate or poor over the past 10 years.
this while the water was completely pure and covered up....
what a country!!
Subscriber
crow 6 December 2023
Why would the cooperative lend money to a business successor, give me 1 reason? They are there to get as much money as possible from the market for a maximum beet price. That's what it's about.
Subscriber
Southwest 6 December 2023
real grower wrote:
Has anyone also seen the press release from a dismissed employee at the water board?
Water quality has been rated as either moderate or poor over the past 10 years.
this while the water was completely pure and covered up....
what a country!!
Where can that press release be found?
Subscriber
gerard 6 December 2023
Seawind wrote:
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/article/10907078/waterquality-is-bij-cosun-een-topprioriteit]'Water quality is a top priority at Cosun'[/url]
Nice article, clear vision from Cosun! Still have feeling for the members!
They may also be able to set a new course for business successors to push the banks back a notch. How? By providing young potential business successors with a star bonus or starting capital with, say, 2% interest for a maximum of 10 years. Reserve a maximum concern amount in a pot for this!
A second action is to test renure products as fertilizer substitutes and thus minimize leaching risks. In addition, the officials in the Netherlands and the EU are working on a realistic approval of these products!
I cannot find anywhere in the story about the starting capital of farmers with interest of 2%
or was it a cross from you
real grower 6 December 2023
NH news
Subscriber
sea ​​breeze 7 December 2023
It was just an idea to invest just a part of the result for the future. Especially if the banks start showing strange behavior. Apparently they have to go for maximum profit even if that will cost companies their heads, that is really cooperative thinking from RABO, among others. I thought that 2,0% was a nice gesture for starters! And starting repayments after a 10-year term also seems logical to me and no problem for Cosun! That money is not gone and the risk is small. So a board with different balls than RABO is necessary. Or do you wait for insurers such as ASR, which already manages 43.000 hectares, and ABP and others with requirements for circular agriculture, or ask Tjeerd de Groot, who now still has €85.000 in redundancy pay for his efforts in recent years!
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