Boerenbusiness analysis
What about the future of dairy farming?
The Netherlands owes approximately 8 percent of the national trade surplus to the dairy sector. It appears that the sector is thriving and thriving, but the opposite has been true in recent years. In 2017, an eruption is slowly starting to develop as a result of the mistakes that have been made. What about the future of dairy farming?
Dutch-Dairy-D-Day. A way to describe May 4, 2017. It was the day the judge ruled in a case driven by 5 dairy farmers and one beef farmer. They did not want to dispose of healthy cows in an attempt to reduce phosphate production from dairy farming to below the sector ceiling of (just under) 85 million kg of phosphate.
Euphoria predominates
The companies that participated in the lawsuit are very diverse. For example, there was the organic company of Henk Aa, dairy farmer in Aver Heino. He took over the former experimental farm about 4 years ago. He says: 'Euphoria predominates. The chances of you winning against the state are slim, but we did it. In total, 27 cows had to disappear from our company. I refused to give away pregnant heifers.'
Another party that cooperated is BioStee, a collaboration between arable farmers in the Hoeksche Waard who work with a manager. They have even won prizes for their cheeses. Thanks to the lawsuit, they too are exempt from the Phosphate Reduction Regulation.
Nevertheless, the chance that the farmers could win the case, despite the gaps in the scheme, was not very great. In fact, you are facing the state. Unlike Aa, other livestock farmers started pre-sorting under the Phosphate Reduction Regulation 2017. In addition to the 2 companies mentioned, 3 others were involved in the case.
High fine
Henk Antonissen, from innovative in a pinch, counts a few dairy farmers among their members who took part in this case. "We knew there was a reasonable chance that they could win the case, but because of the size of the fine it is better not to take the risk." These are taxes of thousands of euros. In order to comply with the LU regulation, cows were sold or it was decided to collaborate with other dairy farmers who still had room for cows.
18
May
The question that remains, after the judge's ruling, is what to do next? On May 18, the talks will focus on the sixth action programme Nitrates Directive starting. This is necessary to be able to submit a new application for the derogation for nitrogen usage standards. This is part of the Water Framework Directive. Brussels has indicated through the outgoing State Secretary Martijn van Dam that it only wants to talk if the dairy farming sector with phosphate production again falls below the sector ceiling.
With the narrowest of margins
Dairy farming has already produced too much phosphate since the last derogation was issued. Even with that derogation, the Netherlands only just stepped over the ditch. There was no reason to take a critical look at the current state of affairs and to prevent things from getting out of hand in 2017. The Dairy Cattle Act was passed, which was supplemented by the General Administrative Order on land-relatedness (AMvB) and phosphate rights were announced as a last resort.
Ultimately, the goal is to improve the quality of groundwater and surface water in terms of nitrogen. Due to all the developments, phosphate is now seen as a problem and a major polluter, while it is an important raw material for the cultivation of crops and animals cannot do without a certain amount of phosphorus.
160.000 cows gone
To save what can be saved, the Phosphate Reduction Regulation 2017 was introduced. No market forces, but phosphate effects. The scheme provides for 160.000 cows to leave the Netherlands. In 1985 there were 2,37 million animals in the Netherlands compared to 1,74 million in 2016, but there are still too many. Manure processing was a dead end from the start, because exports cannot be deducted from the balance. The Netherlands, and therefore also Brussels, only look at what animals produce. The fact that much less is landed is not taken into account.
Against the background of the hype called sustainability, the government has invented the least sustainable policy. It takes 2,5 years for a cow to calve for the first time. During that period, various new types of legislation and a phosphate reduction plan were introduced, which was launched on 28 April third time went on the run. The reference dates: 2 July 2015 minus 4 percent, unless proven to be soil-bound and not grown, 1 October 2016 for the high fine and 28 April 2017 for a young stock number. The Netherlands Enterprise Agency (RVO) cannot keep up, yet dairy farmers are expected to be able to. Unlike RVO, they also have to deal with a company that needs to be run.
Everything on the loose
It was therefore not a question of whether there would be a lawsuit, but when would it come? Now everything is still in limbo. This while many livestock farmers have already had to make difficult choices about the livestock. It is also the last 60.000 cows that will become a problem. Young stock may only be disposed of in combination with dairy cows, so the future of the company must therefore be taken into account. It has an effect not only through direct income, but also for the future of the company. The stopper regulation does not have the intended result and Nevedi indicates that a further decrease in phosphorus in concentrates is not justified.
The sector is checkmate and there is still no solution for better water quality. Which means that these are not the last interventions yet. Is the Belgian model the solution? Monitor water quality at company level and use the Belgian standard of 11,3 milligrams of nitrogen? Time is running out and there is not much room to come up with a plan B. Still, it might be worth helping a sector that accounts for 8 percent of the Dutch trade surplus.
Herman van den Pol
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