News Lawsuit
Group of dairy farmers is suing Rabobank
11 dairy farmers are going to court. They accuse Rabobank of failing to fulfill its duty of care when granting credit related to the abolition of the milk quota in 2015. Rabobank bounces the ball back and points to professional entrepreneurship and entrepreneurial risk.
In the run-up to the disappearance of the milk quota, many dairy farms in the Netherlands have expanded. It was not yet clear at the time that the government was going to introduce the phosphate rights shortly afterwards. At the time of the reference date for the granting of phosphate rights (2 July 2015), many growers had too little stocking density in relation to the barn capacity. Often because construction was still in progress or had just been completed. As a result, they were given too little phosphate space, popularly referred to as 'trapped cases', to utilize the barn capacity.
Substantial expense
One of the dairy farmers is Hanno Zeinstra from Lelystad. Together with his son, he built a new barn for 2014 cows in 290. He approached Rabobank for financing. During the reference date, the barn was far from full, so they say they are now with the baked pears. "We now milk about 220 cows. We had to buy additional phosphate rights for 45 cows and we are leasing them for about 35 cows. All in all, a significant cost item that cuts down considerably," sighs Zeinstra.
Zeinstra, like many other 'troubleshoots', has submitted the case to the Trade and Industry Appeals Tribunal (CBb). But he ruled that the dairy farmer could have foreseen the introduction of phosphate rights. Zeinstra disputes that: "Rabobank never said a word about this. And when the then State Secretary Sharon Dijksma started talking about animal rights, the construction of the new barn was already well advanced and there was no turning back for us."
Requirements for financial compensation
On the advice of advisors, the group of dairy farmers has therefore started a lawsuit against Rabobank. They believe that the bank had a duty of care to point out to unsuspecting dairy farmers that the government might come up with production-limiting measures. The dairy farmers are assisted by law firm Delissen Martens, which specializes in duty of care procedures.
The dairy farmers demand financial compensation from the bank. "Hopefully the judge will rule that Rabobank has failed to fulfill its duty of care." According to Zeinstra, his company is not about to collapse, but he is nevertheless entitled to compensation.
Rabobank: 'Limit to growth was foreseeable'
Rabobank is surprised by the liability claim and looks forward to the proceedings with confidence. The bank says that dairy farmers have been informed of possible production-limiting measures from various sides before the end of the quota era.
Rabobank says dairy farmers could expect that the government would block unbridled growth in order to maintain the derogation. The money enhancer also believes that a dairy farmer is a professional entrepreneur and may therefore not refer to the bank's duty of care towards private individuals.
Wouter Job
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