Five years ago we thought we were living in uncertain times as a result of the abolition of the milk quota. That was true. What was the right strategy; whether or not to expand, whether or not to buy a milk quota, whether or not to buy land as a basis for growth?
Personally, I have a love-hate relationship with this period. It has brought a lot to the sector when it comes to modernizing the sector and developing companies. Many companies from the 70s and 80s needed to be replaced. On the other hand, new measures have also created restrictions that prevent ambitions from being fulfilled.
And again, as a sector, we are in an uncertain period. We see that this is at the expense of the enthusiasm to take over companies or to make in-depth investments. The fact that the market is changing is a fact that many sectors have to deal with. But every sector also benefits from stable legal frameworks.
Regular changes to the frameworks create a sense of the need to take quick steps to stay ahead of the law. This is often forced and does not always fit the strategy and development of a company. Getting a permit only now or speeding up anticipation of possible future legislation should not be the driver of business development.
It is more logical that the life stage of an entrepreneur, replacement of depreciated company buildings or ambition are the motives. Here, the government can show itself to be a more reliable partner. After all, dairy farming works with means of production that have long payback periods.
Would this completely remove the uncertainty? partly. Because then there is also the market and it cannot be controlled. Like other sectors, dairy farming continues to adapt to the wishes of consumers and society, both of which are translated by the milk buyer to the farmyard. What used to be a premium is now the standard.
The challenge is always trying to remain distinctive in favor of a higher milk price. Internationally, we have been receiving an above-average milk price for years. The trick is to maintain this for the longer term. But then there must also be reasons to ask for this higher price. The biggest challenge lies in meeting the current wishes of the customer with as little cost increase as possible. A challenging task.
| Mary Dekkers |
| Marijn Dekkers (42), sector specialist dairy farming at Rabobank. Born and raised on a dairy farm in Brabant. In his position, he supports all local Rabobanks in the field of policy, vision formation, lectures, training courses and second opinions on business plans. But also contacts with the (trade) press when it comes to dairy farming. |
Uncertainty or not, the sector has proven that it can always adapt to the demands of the times. And that strength is still in the sector. We remain an international leader with innovation and entrepreneurship. With stable and clear legal frameworks with sufficient respect and appreciation, dairy farming is still able to meet future market demands.
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