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News Lely, Rabo and FrieslandCampina

Rush on nitrogen pilot with Lely Sphere

15 July 2022 - Wouter Baan - 5 comments

There is great enthusiasm among dairy farmers to participate in the nitrogen reduction pilot with the Lely Spere. In this, the machine builder works together with FrieslandCampina and Rabobank. In this pilot there is room for placing 96 Lely Spheres, spread across the Netherlands. "Within two hours, the pilot was already well overwritten," says Lely.   

The pilot means that Lely, FrieslandCampina and Rabobank will jointly support the installation of the Spheres. Lely does this by means of a discount, Rabobank gives an interest discount on the financing and FrieslandCampina takes out the wallet via the milk money. The dairy cooperative is making €960.000 available for this. The amounts that the other companies contribute are in the same order of magnitude.

'The more the better'
After the launch on Thursday, a rush of interest has arisen at Lely. "Within two hours, the Pilot was already well overwritten," says a spokesperson without wanting to mention concrete numbers. "We warmly welcome this, because in our view the Lely Sphere is the way to reduce nitrogen on a large scale in Dutch dairy farming." The scientific basis is that the Sphere can reduce nitrogen in the house up to 70%. So far, Lely has sold ten Spheres, and that number will probably increase rapidly in the coming months. "We can scale up production considerably and are open to more pilots like this one. The more, the better", as far as we are concerned.

FrieslandCampina and Rabobank
FrieslandCampina is also enthusiastic and believes that this will offer its members a concrete tool to reduce nitrogen emissions. According to CEO Hein Schumacher, innovation is much more effective and cheaper than buying out farmers. In a letter to members sent yesterday, Schumacher criticizes the government's rigid stance on the reduction targets set.  

Rabobank recently indicated to focus in terms of financing on the frontrunners in the field of sustainability in the agricultural sector. By providing an interest discount and a grace period on the Lely Sphere, the bank is taking a concrete step. "Innovation is important in order to become more sustainable and to be able to continue farming", says Martine Boom, deputy director of Food & Agri at Rabobank.  

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
5 comments
Subscriber
anna 15 July 2022
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/melk/artikel/10899591/stormloop-op-stikstofpilot-met-lely-sphere]Stormloop on nitrogen pilot with Lely Sphere[/url]
It is remarkable that there are so many dairy farmers who allow themselves to be put under an insecure cart. All three parties benefit from keeping the livestock instant. Rabo because they are terrified that massive repayments are being made. Interest and repayment is their revenue model! FC as they are rushing for new members, maintaining their current processing volume is the goal! Lely because in recent years they have focused on innovation on the farm. The past teaches us that innovation has not yet offered a solution! I'm afraid we'll still have the same problem in a few years. Then we can say: the agricultural sector has been confronted with nitrogen for 45 years, there is still no solution!
Subscriber
smart ass 15 July 2022
your name is anna van der wal?
Subscriber
time bomb 15 July 2022
Cabinet brings forward millions. Colleagues pay attention. They are already trying to buy/expropriate BEFORE all options have been discussed. Van der (K)Wal wants to push it through as quickly as possible. We're not going to let ourselves be screwed over, are we? Trying to stretch. It doesn't matter to me anymore, but it does to my kids. We have to stretch until the elections, then we'll see. One thing is certain: the forests are making progress, so who knows.
Good luck to everyone.
shoemakers 15 July 2022
Anna, we don't have a nitrogen problem, just a nitrogen deficiency, because your friends make those rules, that our plants are just suffering from anorexia, how sick can you be to go on like this?
Subscriber
smart ass 16 July 2022
for 500 million you don't get much
You can no longer respond.

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