BB 10 years Just call
'Vegetable is not a substitute for dairy'
Boerenbusiness is 10 years old this year. As part of this anniversary, we look back and look forward to important events in the sector. Which developments play an important role and what should we prepare for in the coming years? Today a conversation with Rik Loeters, general manager at Trigona Dairy Trade.
The Dutch dairy sector has been faced with many hot fires in recent years, the most recent example being the nitrogen crisis. This crisis has less impact on an international dairy trader such as Trigona Dairy Trade. According to Rik Loeters, the uncertain factors are mainly formed by the weather and politics. The corona crisis has been added this year.
How does the corona crisis affect your company?
"I think the first influence that the corona crisis had on the dairy sector was short-lived. Demand from the catering industry declined, but as far as I know this has been well absorbed by retail. There was also a short-lived disruption of distribution channels, but I I think that retail has also picked up and solved this well. In the long term, I even think that the corona crisis has a positive influence on the dairy sector. Looking at the increasing sales of dairy in supermarkets, dairy products have regained some appreciation. I was more concerned about the announced economic crisis. This is certainly a threat to us as an internationally operating trading company. Now I had actually already expected the economic crisis, so I am afraid that we will remain in uncertainty for a while in that regard."
How do you think the dairy sector is in 2020?
"I think the Dutch dairy sector is in good shape today, especially when I look around other sectors, such as tourism and events. There are, however, some difficult political issues that mainly affect dairy farmers. Also public opinion is something that plays a big role today. The distance from farmer to citizen seems greater than ever. People no longer know where their food comes from. I think it is certainly important that we do our best to refine this public opinion. Research by the retail sector has shown that in 5 years' time about 25% of the fresh dairy on the Dutch supermarket shelf will be replaced by products that claim to be a healthy plant-based alternative to dairy, while dairy is 1 of the few 100%. is pure products and most "so-called healthy alternatives" are fully composed and contain a large number of additives. There is a lack of knowledge. This opinion has on Trigona Dairy as b Furthermore, the company has less effect, in all likelihood people will always continue to consume dairy. Exports are always looking for healthy dairy products, which will probably only increase in proportion. We trade on the global market, are not dependent on Dutch demand and are relatively small trading company, which makes it easier for us to get into or out of certain situations."
Which developments in the past 10 years have a clear impact on your company?
"The loss of the quota has had a huge impact on us. There was a lot of uncertainty about what would happen after the disappearance. What is dairy production doing, how is the trade picking up? -wit to say whether the loss of the quota has had a positive or negative influence on us. We earn our money by acting 'right', our choices directly affect the result we achieve. Around that time we have the Fortunately, we estimated the situation correctly, so that we were not necessarily disadvantaged by the abolition.Another event that had an impact on us was the Russian import ban on dairy, among other things, in 2014. I think this was a big blow in the face for the entire dairy sector Russia was a very large, if not one of the largest cheese importers and this one fell away in one go, but I must say that the sales problem was quickly resolved to other areas."
What developments do you expect for the coming years, are these dangers or opportunities?
"For us as a dairy trader, Brexit is lurking as a threat. What shape will it eventually take and what does that mean for trade? I also see an economic crisis as a danger, because it has a direct impact on trade. Still, I think dairy farmers face more dangers, which can be turned into opportunities.In the dairy industry, the weather and politics have the most influence on prices, just like with dairy farmers, but they often have to deal with regulations that have a large , long-term, impact, such as the feed measure if it had come."
"As I mentioned before: we have to watch out that public opinion does not turn completely against us. The influence of influencers, among others, is increasing. The emergence of plant-based products, which are often also promoted by influencers, is something that we have to keep an eye on. There is an opportunity for the dairy sector to adjust that public opinion. That will take some effort, but it is certainly important to maintain dairy farming. At the moment you see more and more companies that have difficulty with follow-up, young people do think twice before stepping in. Negative public opinion does not help, as this ultimately affects the daily life of the livestock farmer. I therefore think it is good that there are more farmers are going into politics again. Make your voice heard, don't stand aside. When the wrong political wind blows, it is a great danger for the sector."
"And in terms of opportunities: for us I think that is keeping the focus on products with added value instead of bulk. It might also be good if the politicians start labeling the European market as 'local', instead of just our stamp. We have Europe for a reason. With dairy farmers I also see developments such as automation and robotization offering various opportunities to compensate for labour, for example. From Trigona Dairy, we have also responded to automation within the dairy sector with our daughter company DAO.eu. DAO is the first and only 24/7 Online broker in the world."
Do you have any tips for entrepreneurs?
"Focus on things you are good at and have influence on. Try to positively influence public opinion. I am afraid that public opinion will eventually make or break dairy farming. Do not stand aside, go into politics if necessary if this suits you to act as a positive stimulus for dairy farming."
Jorine Cosse
© 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.