News ABN Amro
'Third nitrogen reduction costs 1,60 euros per 100 kilos of milk'
The ideal nitrogen approach for dairy farming does not exist. This is apparent from a study by ABN Amro into the effects and costs of various measures, such as termination and relocation, innovations and management systems. With a smart combination of measures, a nitrogen reduction of 25% to 33% can be achieved at company level. This results in additional costs of €1,60 per 100 kilos of milk. According to the bank, it would be logical if the government would accommodate companies in this.
A pragmatic combination of measures is most effective in pulling the Netherlands out of the nitrogen swamp, says ABN Amro. What the best combination is, according to the bank, differs per region and company. It is crucial for such a combination that a system is created that demonstrates the effect of reducing measures, for example a (calculable) substance balance.
The bank examined measures in three categories: structural measures (stopping, moving or switching to organic), technical innovations (such as housing systems and the Lely Sphere) and management measures (for example grazing and low-protein feed).
"A combination of measures is actually the most effective," explains Pierre Berntsen, director of Agricultural Companies at ABN Amro. "Don't use everything on one track, but look at what is practical or feasible." preference over forced expropriation, which, according to the bank, takes a lot of time and frustrates cooperation in an area-oriented approach.
Purchase and relocation relatively expensive
Purchase and relocation appears to be the most expensive reduction method. In the case of a purchase, €49 to €56 per kilo of nitrogen reduction per year. If the soil is also depreciated, it is €84 per kilo of nitrogen. Technical measures are much cheaper (see table below). Emission reduction through management measures, such as more grazing, lowering protein in the ration and keeping fewer young stock, is the cheapest option.
"In practice, a smart combination of measures leads to the desired nitrogen reduction while limiting social costs," the report states. At company level, a reduction of 25% to 33% is achievable at an annual cost of €16 to €22 per kilo of nitrogen. This results in additional costs of €1,60 per 100 kilos of milk.
"We would find it logical that the government also makes a contribution if it benefits nature and society, partly because margins on dairy farms are so low that they cannot bear it themselves," says Berntsen. When asked whether the government should release money from the nitrogen fund from this, the director says that he hopes the cabinet will look at how this damping can be given national budgetary shape.
"It is important that nitrogen emissions are actually seen," emphasizes Berntsen. "Provide a system in which you have certainty and assurance that emission reduction actually has a status. You have to set up a system for that. We make a number of suggestions — a (calculable) substance balance, monitoring with sensors, periodic inspections or a combination of these — but it ultimately rests with the government.”
Research applicable to other sectors
The research focuses on dairy farming, but Berntsen emphasizes that 'administrators should also look at other agricultural sectors and industry'. "All sectors are at the forefront to achieve emission reductions." According to the bank, the research can also be applied in other sectors. "It's a line of thinking. Everything that helps to reduce can be researched, also in other sectors, including non-agricultural sectors. It takes some research work, but everyone can do this, including politicians or other organizations."
Linda van Eekeres
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