Boerenbusiness is 10 years old this year. As part of this anniversary, we look back and look forward to important events in the sector. Which developments play an important role and what should we prepare for in the coming years? Today a conversation with Robert Liet, director of Trioliet, manufacturer of feeding technology for dairy farming.
The Dutch dairy sector has been faced with many hot fires in recent years, the most recent example being the nitrogen crisis. Despite the setbacks, the sector is still strong, says Robert Liet. The importance of the sector is also being emphasized again in the current time, as the corona crisis stimulates rather than suppresses dairy consumption.
What has changed in the past 10 years and what was or were the most important event(s)?
"I think that the abolition of the milk quota in April 2015 was without a doubt the most important event. When it became known that the quota was being reduced, everyone increased production. The dairy industry invested heavily to be able to handle production, among other things. we benefited within the company from the abolition. The whole sector adjusted to a life without quota and suddenly we all had to 'back in the cage'. In the end I think we would not have had all the current problems, or to a lesser extent, if the quota would not have been reduced, which would also have been better for the peace and stability in the sector."
We now live in a time where the corona crisis is keeping a finger on the pulse, how has this affected you and your company?
"In the first months it was of course a matter of exploring: what next? A moment of anticipation within the company was therefore almost inevitable. We mainly suffered from problems in the supply, especially from Italy. That lasted about 6 weeks, after which it has actually returned to normal. Traveling and the stock markets are of course a different story, since restrictions still apply. But I think the influence of the corona crisis on the Dutch dairy sector is not that bad. It is said that the consumption of dairy is only increasing I also thought the number of infections among dairy farmers was not too bad, but the nitrogen crisis, on the other hand, is much more difficult."
How do you think the sector should move forward, also in view of the nitrogen crisis?
"Now that the feed measure has been rejected, we may be able to take a breather, but something is almost guaranteed to come in return. Still, I have the feeling that, now that we are over a year later, a kind of 'acceptance' takes over. In the beginning there was a lot of resistance, partly due to the lack of clarity. Now that the government has shown that something really needs to be done, I have the idea that people are aware that different times are approaching. We also notice this within Trioliet. In the beginning, customers were hesitant, but since the spring seems everything has actually returned to normal level.You also have to move on at some point, you can postpone investments for a while, but often not for years.As time goes by, choices and decisions have to be made regardless of whether you agree with the measure or not. In addition, the next measure can also take quite some time before it is introduced or developed at all."
"I do think that we as a sector are on the right course. There is still sufficient resilience, although it will probably continue. Our sector enjoys worldwide esteem because we have built up a beautiful sector for centuries in a relatively small country. Our dairy farmers have I expect the general trends such as sustainability and organic to continue in the coming years. Dairy consumption reportedly continues to increase worldwide, which automatically entails an increase in scale. This is especially true in North America. "Small" dairy farmers who stop milking about 200 cows and the large companies continue to grow. However, scaling up in the Netherlands is not possible in that way, I think. There is no social acceptance towards such large-scale companies and The number of small farms is decreasing, I expect in the end fewer livestock farmers with more cows, but the scale too much like in North America is not an issue here at all."
What do you think are the opportunities and dangers for entrepreneurs in the near future?
"I think the biggest danger lies in the unpredictability of the government and its regulations. As a livestock farmer you choose a certain direction at some point, but if the government adjusts its course and you have just made your major investments on the previous course then you are in fact 'unlucky'. I think that is a serious danger, the fact that some people are so disadvantaged by it."
"I see opportunities in promoting our sector in a positive way. Sustainability, biodiversity and the like are of course common concepts, but let's not forget that we are dealing with public opinion. We have to seek out the public, positively draw attention to the sector "Bringing and propagating what we stand for: changing the image of society. Farmers are not major polluters. I think we are at a tipping point, but we can do better."
What tips would you like to pass on to entrepreneurs?
"Keep a close eye on your cost price and now and then, figuratively or not, distance yourself from your company. Think carefully about which direction you want to go. In certain circumstances you certainly have to keep fighting, but you cannot You have to take stock for yourself: do you want to join the trend, or do you not feel comfortable continuing the company in this way and is quitting, no matter how difficult, a better option? a difficult choice, but talk about it! The average farmer is a hard worker, don't whine, but tackle it. We'll see the rest later. But later you can also catch up. This does not only apply to trends that do not affect your vision or business operations. connect, but also, for example, discussion within the family. Make it negotiable, get out of the bubble. If necessary, seek help and make sure there is clarity. Get clear on what you want, also in the longer term. I think that is the most important thing."
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