Brought to you by Flynth
'Helping entrepreneurs to be successful, especially now'
Nitrogen, energy, derogation, the new CAP… As an agricultural entrepreneur, it's like playing chess on ten boards at the same time. Flynth, market leader in the agricultural sector with more than a hundred years of knowledge of the sector, helps entrepreneurs to make the right choices. "Even in uncertain times," say Lubbert van Dellen (market director agro) and Bas Hidding (chairman of the executive board). "We are a partner for SMEs, from A to Z."
"The market has become a lot more challenging," concludes Lubbert van Dellen, who has seen the agricultural sector change up close in recent years. He does not only mean the quality of products, which is a challenge and is still crucial. "The circumstances surrounding the agricultural company have also changed considerably. Society and all stakeholders are asking much more of farmers than before. For example, you have to have permits arranged down to the smallest detail, otherwise you are very vulnerable at the moment. And financing come with a whole list of ratios that you have to meet every year."
Monitor overview
According to Van Dellen, agricultural entrepreneurs have three options in this complex market. You do nothing with it, but then you lose your right to exist. You choose a separate specialist for each component to support you. Or you choose an organization that has it all. "As a Flynth customer, you do not have to use all parts of our services, but we do notice a growing need among entrepreneurs for parties that help to monitor the overview. Our role has therefore changed considerably in recent years. From before – put in plain terms - put the figures together, calculate the profit and think along with you about how the profit can be lowered.Towards a sparring partner for the entrepreneur, with useful tools, sound advice and a critical eye.With extensive reports that have become a reference work for the company , to present it to all stakeholders."
Flynth's mission is clear. "We want to help our customers with the best advice," says Bas Hidding. "In the agricultural sector we combine this with our sector knowledge, thanks to more than a hundred years of experience. We originated from the agricultural sector and are the absolute market leader here. Especially in these times, with all the uncertainties and developments, we play a special role for entrepreneurs in this sector. We are the confidential adviser who can indicate what is going on and can help you find the right answers. Right now we are taking on this role and doing so with expert accountants, tax advisers, lawyers and business experts. This also means that Flynth invests in knowledge and development to continue to fulfill this role optimally in the future."
Political winds are changing
An important trend that agricultural entrepreneurs have to deal with is the changing political wind that is blowing from Brussels. Van Dellen: "Before the invasion of Ukraine, this was very much focused on the Farm-to-Fork strategy. Living and consuming differently and much more organically. At the moment that is much more the 'Fit for 55' strategy, which aims to reduce net greenhouse gas emissions by 55%. A strategy that focuses on the climate and reducing dependence on other parts of the world. This means more attention to our own energy, fertilizer and raw materials. The agricultural sector is much more a solution to the problem than a problem itself."
At the same time, we in the Netherlands are still very busy with nitrogen and other issues in the agricultural sector, notes Van Dellen. "The nitrogen approach requires a reduction in nitrogen emissions. The size of this required reduction is partly determined by the extent to which legislation will change as a result of the results of the recent elections. There is a lot to be achieved with management and efficiency at the primary company. But also with barn modifications and technology. If you combine that technology with biogas, then every cow in the Netherlands can provide a new home with energy. With the help of biogas, we can process manure into fertilizer substitutes, produce a lot of energy for society, reduce nitrogen emissions significantly. and take a giant step forward in terms of climate, with a good reward from society and consumers."
Energy and spatial planning
In addition to the increasingly unpredictable external issues and political policy, the agricultural sector has to deal with the growing world population and a changing consumption pattern. "The challenge is to respond to this as an entrepreneur with production. In the densely populated Netherlands, this requires the necessary adaptability of companies."
Another impactful trend is the energy crisis. Due to rising energy prices, entrepreneurs are increasingly asking how they should relate to the energy market. This is not only an issue in greenhouse horticulture, where Flynth also advises many entrepreneurs, but in the full breadth of the industry agricultural sector. "That is why we not only have accountants, tax specialists and business experts in-house, but also, for example, consultants in the field of spatial planning and energy experts, specializing in the backgrounds of solar, wind, geothermal and biogas," said Hidding.
Expansion of revenue model
Despite the increasing complexity surrounding regulations and financing, Flynth sees many opportunities for the agricultural sector. These are mainly in the broadening of the revenue model. Hidding explains: "There is a huge opportunity to improve the value of the agricultural product and to convert all the values that you add to society as an agricultural company into money. Think of energy as a revenue model, nature and extensive agriculture, making clean water. Traditionally, however, these are not the things that the sector focuses on. That requires an enormous professionalization process and that is usually made easier by companies with a larger size, but a smaller company can also do it."
On the one hand, meeting the increasingly complex requirements from the environment and, on the other hand, responding to the opportunities that exist. Putting that puzzle right, that's where Flynth is an important partner for agricultural entrepreneurs. "It's not just about technology, the figures, but also about process guidance for strategic choices," says Hidding. "For example, we are currently doing a lot with heritage management," says Van Dellen. "That goes much further than a good will or partnership contract. We take the whole family into account in how the family capital that is in the company is passed on to the next generation and record this in a family charter. This is to prevent heirs from fighting here afterwards get over."
Full-width advice
Finally, Hidding dwells on the so-called CSRD Regulation. This prescribes that from 2024 large SMEs in the Netherlands must show their impact on people and the climate. "We support customers in this. The solution is often that companies do something with the CO2 rights of the agricultural sector. We also translate this to other SMEs that are not listed on the stock exchange. They often have to provide comparable information to customers. That accountability will Flynth has a specific knowledge group in-house to provide solutions in this area as well. After all, the best advice for an agricultural entrepreneur is advice across the board. This way we are and remain of added value for this important sector. "
