ING

Interview Jan Willem van den Berg (ING)

'Dairy farmer must switch to organic right now'

29 December 2022 - Wouter Baan - 43 comments

Now is the time for dairy farmers to switch from conventional to organic, says Jan Willem van den Berg, agricultural sector specialist at ING Bank. The price difference between the conventional and organic milk price is currently so small that you can bridge the conversion period of two years without needing extra credit. In doing so, the bank is aiming for countercyclical investment. "At the moment the returns in conventional dairy farming are better than in organic, but realize that this is only a snapshot."

ING Bank states that now is a very interesting time for conventional dairy farmers to switch to organic. That sounds remarkable, given that the current milk prices are almost identical to the organic prices.
"That is indeed the case, but that is precisely what makes it so interesting. Normally the price difference is greater, which makes the mandatory conversion period of two years much more difficult from a financial point of view. Now an entrepreneur could take the step without needing extra credit. In fact, half a been even better years ago, given that prevailing milk prices are currently moving down again."

Then there must also be room in the organic market?
"There is. Both FrieslandCampina and EkoHolland have room for fifty extra dairy farmers. FrieslandCampina wants to increase the sales of organic baby milk powder and EkoHolland has sales space for fresh dairy products."

But due to high inflation, organic dairy sales are under pressure…
"You can look at this in several ways. Due to inflation, the price difference between conventional and organic dairy has become smaller. This has made organic dairy relatively more interesting for the price-conscious consumer. A switch from conventional to organic is not a business choice for in the short term. In the longer term, organic milk prices will be higher than the usual. Are you going to produce for a relatively stable organic market, or will you go along with the whims of the world market? That is the question you as an entrepreneur must ask yourself. Also take government policy into account, which seems to offer more prospects for organic farmers. How will I farm in ten to fifteen years time is the key question."

That requires a considerable entrepreneurial scope, often the short-term memory is larger. What are your expectations for the milk price in 2023?
"The conventional milk prices are under more pressure than the organic ones. The world market prices for cheese, butter and milk powder have been marked down considerably in recent months and are still under pressure. The conventional milk price could just drop a dime in early 2023. FrieslandCampina has with the guaranteed price for January, the first step has been taken and the other processors are following suit. The organic milk price is also under some pressure, but much less than the usual price. The price difference between the usual and organic milk prices will therefore increase again in the coming months ."

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Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

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Comments
43 comments
Subscriber
January 29 December 2022
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/melk/artikel/10902279/lsquo-dairy farmer-must-switch-to-organic-right now]'Dairy farmer must switch to organic right now'[/url]
bank has lost its way
who should eat and drink that dairy?

there is already too much
if ever informed in France?
Subscriber
wappie 29 December 2022
They are going to mix the organic milk in the regular to get rid of it.
Within the new co2 pricing system to be introduced, regular livestock farmers will be charged extra to subsidize organic livestock farmers.
Arable farming is killed in a similar way
Subscriber
Carpenter 29 December 2022
that's off the path.
maybe his fat bank salary and canal belt friends can afford it. but the rest just goes for affordable and healthy.
Subscriber
sefO 29 December 2022
van den Berg, you are talking like a chicken without a head, before you open your waffle, first make it visible whether it is all so much better per kilogram of product than usual,
simply a full food print of both production methods.
Berg it would be to your credit if you told the honest story "populist bullshit"
Subscriber
honor 29 December 2022
That calls itself a specialist? for a few this will be an option, but I hear otherwise from the dairies...
Subscriber
jk 29 December 2022
interesting thought, but fueled by wishful thinking
Subscriber
milker 29 December 2022
In a few years' time, all conventional milk will become organic, at least if the plans go ahead
as they are now.
Subscriber
Louis Pascal deGeer 29 December 2022
Unfortunately, I believe that by no means all farmers and dairy cooperatives are really aware of the technical implementation of the switch from "conventional to organic" but above all do not realize the enormous advantages there are for circular production and the intelligent use of the bee - and waste products from dairy farming. The vision expressed in the article is very similar to communication in Brussels. The Hague, farmers!
Subscriber
sea ​​breeze 29 December 2022
Louis I thought you were as smart as Jan Willem but you are a little higher in rank. I now understand that farmers want to get rid of Ing from RaBO and co. What a bunch of imitators. Lie just as strong as the CU and don't dare to tell the honest story. Ask Van der Wal what to write next time! Ask RIVM about NH3 van Zee. Ask TNO about noise in N measurements. Ask Prof H. Lindeboom how far NH3 remains in the air after emission from the stable
Subscriber
pig farmer 29 December 2022
Bank specialists work like car drivers who only look in the rear view mirror.
A change is not noticed.
Subscriber
Louis Pascal deGeer 29 December 2022
Sea breeze is fresh and healthy and doesn't put anyone in a box of cleverness, because that's not what it's about at all. If you can understand something that Nature can do for you then you can indeed be called smart. Knowledge is power!
Subscriber
gerard 29 December 2022
another brush that makes you wishful thinking!
Subscriber
sad horn 29 December 2022
let them enjoy tree-hugging and wishful thinking at ING, then we will provide food for the world
Subscriber
what a harry 29 December 2022
I hope that the whole mess in The Hague gets a kick in the ass in March!
And then let them send this faggot out of the way too!
They would think of the less fortunate people!
Subscriber
Concerned citizen 29 December 2022
While the average citizen no longer has a nail to scratch his ass with, WEF partner ING comes up with the ridiculous proposal that switching to organic has never been easier. In the shops, it is precisely the organic products that remain and the usual private label product is sold out, which should give you something to think about...

Such people, unfortunately, are far from everyday practice.
Subscriber
karel 29 December 2022
I hope this preacher gets a lot of followers, then one thing is certain; that there will be less milk and prices will automatically rise.
The poor people do not think of such ministers!
Subscriber
float 29 December 2022
I don't think this Jan Willem with his above average salary has ever seen a cow up close.
nice cocks from the canal belt, must also be a d66 friend.

rare stupidity this
Subscriber
I did not know 29 December 2022
did not know at all that ING was still active in agriculture with financing.
never hear anyone about them, never see an ad from them or come across them at a trade show.
perhaps, given the statements of this man, better
Subscriber
Albert Mulder 29 December 2022
This is really another specialist who could just as well have been sitting in a chair in The Hague, a completely unfounded statement with no market perspective at all.

The logic and reality are missed and I think this is a poor performance for a bank like ING, they should be ashamed to bring this out.

A bank must know better than anyone that market forces can only be used by the purchasing party (the consumers) and not by banks and government institutions. The sober mind is certainly no longer there.

So Jan-Willem van den Berg, let's go into the study. Because if an average farmer with common sense can undermine this statement and easily refute your views, you should think carefully whether what you say is true.....!
Subscriber
flower 29 December 2022
Fortunately, this man has nothing to say.
We really shouldn't think about that.
If you work in practice like we do, you don't come up with such views.
But yes, if you come up with such things, it will be worse for him than for us.
He has to continue with it and fortunately we don't.
Subscriber
Hank. 29 December 2022
If the whole world wants to practice organic farming, then about 40% more agricultural land is needed. And about 10-20% of the world's population will starve. *SO THIS WAY OF FARMING IS CRIMINAL AND KILLED.!
Subscriber
crow 30 December 2022
The best man is right about 2 things, it is indeed a good time to switch with regard to price difference and secondly, in terms of the government's thinking, there is more future for organic in the Netherlands. However, he forgets the negative market for organic and the fact that as an entrepreneur you also have to want to be organic.
Subscriber
time bomb 30 December 2022
What do all those people think with a title before their name, who do nothing but talk nonsense, and hang up a mountain of thunder. In the vernacular, stupid farmers are sometimes used, but they do use their common sense. All that scum has to be removed. How can people produce less, when the population is increasing hand over hand, and in a decade a third of the world surface must be nature??
Great food they will suffer who cause and support this, and it doesn't matter. Just let them perish.
Claas 30 December 2022
The call to switch sounds more positive than the nitrogen policy, but it has the same effect.
Expect that farmers would rather stop, so the government's goal has been achieved and it has been shown that farmers do not really want to change, as they say themselves.
Subscriber
ing farmer 30 December 2022
is there any news whether this man still works at ING?
Subscriber
Louis Pascal deGeer 30 December 2022
Reading the responses, it seems to be becoming clear that there is not enough knowledge about what exactly switching from conventional to organic entails and what the best way to do it is. This naturally applies to all production systems and not just to dairy. We are now almost in 2023 and what used to be true no longer has to be true today, such as the statement about a loss of production when you start working organically. Knowledge and technical help is needed for the farmers who want to switch, because without that will it is better to keep going. More information about what the now organic farmers do and can do seems to me very necessary! Much Hail and Blessings in the New Year 2023,
Subscriber
good reading 30 December 2022
dear Louis Pascal, I think you are not reading correctly. there is not a lack of knowledge, but a lack of the will to switch.
farmers are down-to-earth thinkers, and a down-to-earth thinker can see that things go wrong when we switch to organic.
Less money, more risk and no need from the consumer or the world market.

so get out of your advice bubble.
Subscriber
Louis Pascal deGeer 30 December 2022
Fortunately I'm not enclosed in a bubble, but I always give advice when I can. Fortunately, there is no doubt for me that organically produced food is healthy. If you read carefully you know that I try to be coherent with what I learned in school and in the agricultural business here in Brazil. The will becomes visible when the financial results are there and that largely depends on the consumer deciding whether it is worth buying organic food or not.
Of course, the government can stimulate the transition by, for example, levying lower health insurance premiums for people who eat organically, which is also an attractive arrangement to help pay for the transition period.
I also think that you have to work in a cooperative context to get the best results. On to 2023!
Subscriber
pig farmer 30 December 2022
Hi Louis Pascal de Geer, you come up with a cautious statement that organically produced food is healthy. Didn't see anyone claiming a different statement. However, regularly produced food is no less healthy. What always remains a question to me why organically produced food may contain more residues than traditionally produced. Then I believe that it is rather less healthy, because otherwise the maximum number of residues must be equal.
Subscriber
time bomb 30 December 2022
pig farmer wrote:
Hi Louis Pascal de Geer, you come up with a cautious statement that organically produced food is healthy. Didn't see anyone claiming a different statement. However, regularly produced food is no less healthy. What always remains a question to me why organically produced food may contain more residues than traditionally produced. Then I believe that it is rather less healthy, because otherwise the maximum number of residues must be equal.
That's right, and one should not forget that regular products are heavily checked. What I also think is that organic users look less healthy and clean than consumers who eat regularly. Those people torment themselves, but yes, they think they deserve heaven with it.
Subscriber
peer 30 December 2022
Mr Van den Berg has been in the news a lot in recent weeks. Both
here in this interview and on all kinds of social media. that's separate.

What these messages have in common is that they are bad stories that are apparently only intended to portray themselves. that is allowed, but then shout something that adds virtue instead of chatter
Subscriber
Louis Pascal deGeer 30 December 2022
Yes, it often happens that organic products do not look as spotless as the conventional ones, but often the taste is much better and the shelf life is longer. People who eat organically don't torment themselves, but enjoy the food with pleasure! Unfortunately, the food industry has not yet found any means to improve the quality (organic quality).
Subscriber
pig farmer 31 December 2022
Louis Pascal de Geer , with your statement you ignore the fact that more residues may occur in organic products. That is a fact which means that a conventional product can be rejected for consumption and an organic product can be sold. Do you agree with that? Isn't that inexplicable?
Subscriber
Gerard bio 31 December 2022
Dear pig farmer. Discussion is fine, but let's stick to the facts. I think what you write about residuals is total nonsense. Everything that is found measurably in GBM resources is wrong in bio. Regardless of what pesticide it is. There are usually different standards per agent and crop.
Subscriber
Louis Pascal deGeer 31 December 2022
In fact, the discussion is about what the farms should look like in the near future and what should be produced and how to make a difference and improve public health by producing more healthy and fresh food. To run an organic farm you have to have a lot more specific knowledge about how best to do that and that's very difficult when you're trying to do that on your own, there's a lot more research needed on these topics and that means I integrated research with Wageningen, Delft, etc.; THE Nature has all the answers and we are still not acknowledging it!
Subscriber
sea ​​breeze 31 December 2022
If differences can be tasted in products from dairy farming, pig farming and poultry farming, then it is minimal. I think a taste test comes out at max 45–55% ratio conventional and organic. The differences are much greater with vegetables, but there the biological fungal load is more often critical if the storage period increases. All this does not alter the fact that conventional must produce in balance and they are excellent at that!
Subscriber
pig farmer 31 December 2022
Gerard Bio it's not nonsense. A pig of mine with a certain e.g. inflammation value is rejected and with you, if you keep pigs, it is approved because there are different values ​​for it. Indeed nonsense as you suggest but then nonsense to handle differences.
Subscriber
Louis Pascal deGeer 31 December 2022
My Motto for 2023" LET NATURE WORK FOR YOU"
Milk, Butter, Cheese produced in an organic way have a different and tastier taste. Just look at the organic production of natural pastures in the Alps or of an organic grass and leguminous mixture on an organic farm in the Netherlands. There are just huge differences in taste in my opinion. There are also huge differences in the taste of organic pork, ham, etc.
At the poultry farms, the differences are large in both chicken meat and eggs.
Subscriber
Gerard bio 31 December 2022
@porkkeeper, I don't know much about pigs. So I don't know about those ignition values. But inflammation values ​​and residues are really different things. I assume you are not talking about differences in antibiotic or other drug residues in the meat.
Subscriber
pig farmer 31 December 2022
Good luck with your motto for 2023. Two reasons that I feel completely differently about, although I'm not against organic. Diseases are more rather than less in organic, animal husbandry. With organic, the production yield is smaller and the world population cannot be fed. Have inherited so much from the ancestors who were the farmers at the time that they were glad that the chickens and pigs stayed indoors because of diseases, etc. Now people glorify the problems of the ancestors. You look through sunglasses, just take them off and come to reality. Your motto that it is healthier does not apply it is total nonsense. Medication use, etc., is from the past. Compare present to present. A cheese dairy with a name is nearby and when we look at the land and the yield, you think back with nostalgia to the past. And then the soil was also cultivated with understanding. Now a poor mess.
Subscriber
Louis Pascal deGeer 31 December 2022
Dear Pig Farmer, Thank you for the response and the good wishes for my motto to let Nature work for you in 2023. I understand the concern there is about reduced production and more livestock health problems that organic production would cause. That was true about 30 years ago because the knowledge that our ancestors had has not been fully transferred, especially after the arrival of von Liebig and the food industry.
Today, science can help us to convert the lower yield and increased risk of disease in animal husbandry into at least the same financial results as with conventional methods. I wear sunglasses on the advice of my ophthalmologist, but have long since taken them off when it comes to better, healthier and tastier food production and processing. Think for a moment how much food is being produced today and how many people seem hungry in the world. That does not seem to me to be a problem with the production of food worldwide, but is a result of the poverty and lack of local food production and THAT is where the problem arises. Brazil produces about 1.000 kg of grain per inhabitant per year and there is about 1 cow per inhabitant, yet we have 33 million hungry people with a population of 217 million. Our major export products are corn, soybeans and meat. The corn and soy are almost all GMO and are mainly and almost exclusively used in animal husbandry in the world. I'm not wearing sunglasses right now! Organic production and processing is a challenge, but also a huge gift that we can give ourselves
Subscriber
time bomb 1 January 2023
For anyone who believes this kind of madness, please put on 2 sunglasses and crawl under the ground. Happy New Year to all normal people, and may the protests be successful, so that we are rid of those greens and can have a normal life.
Subscriber
sea ​​breeze 2 January 2023
We do not live and work in the Netherlands on the herb slopes of Switzerland or in the climate of Brazil. So don't make those strange comparisons and think you're right. Do taste tests and the farmers recognize something, the townsfolk nothing. The industry processes a lot of products with so many additives that the storage periods increase and the taste decreases.
You can no longer respond.

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