News Theme Day Cereals
'Farmer should not absorb all the blows in the grain chain'
In the Dutch food chain, which is beeping and squeaking due to the price increases that have to be processed, the farmer, as producer of the raw material, should not only absorb the blows. Passing on the higher costs to the consumer is a joint responsibility for the entire chain. This is what Henk Staghouwer, the Minister of Agriculture, Nature and Food Quality (LNV), said today (Thurs 24 March) at the Theme Day Grains in Nijkerk. This showed that the 'fair' passing on of costs is not so easy.
Staghouwer, who originally came from the bakery world, spoke for a selection of all parties in the Dutch grain chain. The theme of the meeting was to make the grain chain more self-sufficient, or – as it was said – 'own grain for own bread'. To this end, a symbolic intention was also expressed as a grain chain to jointly pull together to increase self-sufficiency with Dutch baking wheat in the chain.
The theme is more relevant than ever in this period with the war in Ukraine, Staghouwer told his audience. "Peace, security and an abundance of affordable food. We appreciate it more than ever these days. And you as a chain are the basis of our daily bread." The minister expressed concern that it remains to be seen whether the grain fields in Ukraine can 'turn golden yellow' again this summer. Staghouwer indicated that he offered the Dutch agricultural knowledge and expertise to the Ukrainian Minister of Agriculture where possible. "That is the commitment that we can show and that you as a chain, if requested, can hopefully also show."
More home-grown protein
Dependence on third countries for the supply of baking wheat can be reduced if the initiative is taken to do so. Staghouwer refers, among other things, to: to the Lower Wheat Initiative, which was set up for flour manufacturer Royal Koopmans. It also fits in well with the National Protein Transition, the minister indicated. "More home-grown protein is good for the Netherlands. Meat and dairy are the largest sources of protein, after which grains come in third place. That is why it is a pity to only grow grains in the Netherlands as animal feed. The Netherlands is a real bread country," says Staghouder , which implied that pride in this culture should be spread much more. "Let's celebrate our grain culture right."
The ambition to introduce more Dutch wheat as a raw material in bread is not new. Staghouwer himself referred to the period more than twenty years ago, when grain prices were very low. Even then there were local initiatives to make bread from Dutch wheat, such as the Groninger Landbrood or Zeeuwse Vlegel. These projects also offered growers the opportunity to earn a return on production, as a higher price could be demanded for these products. "Well 2,45 guilders per loaf, a high amount for that time. But it worked."
Literally paying the price for baking wheat
To really make the switch to Dutch baking or milling wheat as a bakery chain is a real challenge, as became clear during the discussion on the day. A price has to be paid for good quality Dutch baking wheat. "The problem is that farmers have to be convinced to start growing baking wheat. Feed wheat yields more tons than baking wheat, so that the returns are at least as high, while the risks are lower. That difference has to be bridged," said a miller. This was confirmed by a grain grower. "If the food sector wants to have higher quality baking wheat, you have to pay for it." Bauke Wierda, Koopmans sourcing manager, also indicated that arable farmers must be intrinsically motivated to grow high-quality Dutch baking wheat for human consumption.
Who ultimately should take the lead in accelerating the process was fodder for a lively discussion between the various sections in the chain. Jan Willem Baas, chairman of the Committee of Grain Traders, summed it up early on: "The only incentive that really works is the price incentive. If the consumer is willing to pay more for the end product, it will pass through the chain. And this price must be distributed fairly in the chain." The cabinet will not explicitly support increasing the Dutch share in the bread chain financially, Minister Staghouwer indicated. "The government is not going to provide a subsidy, that is really not necessary. We are always willing to contribute ideas to innovation and new business, but the chain has to do its own work. Continue to have a good discussion with each other, then we will have a golden future ."
Eric the Thrush
© 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.
