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'Clearing dairy farming can't be true'

11 January 2023 - Wouter Baan - 9 comments

"The dairy sector in the Netherlands matters, despite the fact that you would almost think differently on the basis of government statements," said Arjan Schimmel, chairman of the branch organization ZuivelNL, at the New Year's drink that took place physically again on Tuesday, January 10 after two years of corona. For that, tradition was broken; because not The Hague, but an attractive catering farm in Renkum in Gelderland was chosen as accommodation for this.

The dairy sector starts with the farmer, emphasizes Schimmel in his speech. This is of course an open door, but it is good to realize. "Because without milk, the dairy sector cannot move forward." By this, the chairman refers to the position of dairy farmers, which is under considerable pressure today. 

What is exporting?
The economic importance of the dairy sector in the Netherlands is good to realize, thinks Schimmel. "In total, the dairy sector creates a production value of €18 billion annually, both primary and in processing." According to Schimmel, the government ignores this too easily. It is often said that the dairy sector relies mainly on exports, but that deserves a nuance.

Export value of the Dutch dairy sector
Of the total production value of €18 billion, according to the latest estimates by ZuivelNL, €10,5 billion is accounted for by industry and €7,6 billion by dairy farming. The total export value is about €10 billion. That includes the re-export. Of the total volume of Dutch dairy, 30% remains in the Netherlands and 45% goes to countries in the European Union, mainly to countries nearby. A quarter goes to destinations outside the EU, with China, the US and the UK leading the way.

"The Dutch dairy sector has indeed grown with exports. But what exactly is the definition of export? About 75% of dairy production is sold in Europe. That is a completely different approach than that two-thirds of production crosses the border. The Netherlands is a member of the European Union, so you could see that as a home market." With this approach, Schimmel believes that more social support can be achieved. It is not for nothing that a lot of milk is produced in the Netherlands, about 13,8 billion kilos annually. The climate is ideal for this, as is the business climate, Schimmel sums up.

A lot of pressure on sector
The themes that weigh on the position and size of dairy farming are not bad. "Think of climate, energy, water and nitrogen." According to Schimmel, the sum of these plans could mean a shrinkage of 30% to 40% of Dutch dairy farming. "Such a clear cut can't be true." Schimmel expects the coming months to be crucial. According to him, it is important that the sector as a single bloc can put forward the right arguments to Minister of Agriculture, Nature and Food Quality Piet Adema in order to reach a good agricultural agreement in which the future frameworks become clear.

Despite the fact that the sword of Damocles hangs over dairy farming, Schimmel is not necessarily pessimistic. "Even with fewer farmers, the Netherlands can continue to produce a substantial amount of milk, I am convinced of that. At the moment, one dairy farmer in our country is stopping every day, which has reduced the number to 14.700. If we manage this natural turnover well and the take time, then dairy farming can continue to exist in a socially good and economically responsible manner. That must be the commitment towards the cabinet," Schimmel concludes his speech.

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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
9 comments
Subscriber
ideas 11 January 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/melk/artikel/10902432/kaalslag-milkveehouderij-kan-toch-niet-waar-zijn]''Baldslag dairy farming can't be true'[/url]
How is it possible that the value of Schiphol is considered much greater than the value of livestock farming, I wonder? Which also makes me wonder what all that burnt kerosene does in the clear upper air. No plants grow there to convert it. Did you know that an airplane on its way to South Africa from Schiphol carries 120 liters of kerosene. Wake up.
Subscriber
Zeeuw 11 January 2023
Good speech. Piet Adema, get off that roof. Read ..idea… that is unbelievable but true! Time for FranskeTimmermans to introduce his CO2 levy. Then moving from Brussels to Strasbourg every month will also be a thing of the past. The archive transport alone costs 6000 liters of diesel per year. Then all those officials, send them into the forest into the maniacs!
Subscriber
joop 12 January 2023
Shell, Unilever and soon Boskalis!
Subscriber
xx 12 January 2023
I also found those restrictive regulations quite threatening at first, but the more the government harasses us, the more expensive everything becomes. And if the costs rise sharply, but the yield prices rise even more, then craftsmanship (despite the limitations) will be rewarded considerably. It is a pity for the ordinary consumer who has to look at it with sorrow.
Subscriber
Gerben 14 January 2023
It is crazy that the Netherlands still produces for outside the EU or Europe. A fair guaranteed EU milk price is much better. Higher milk price with a lower milk volume. Outside the EU we mainly dump milk powder, some cheese and so on... A waste of transport costs and pollution and the dumping means a low income for farmers elsewhere.
Everyone benefits from that.
At LTO, the dairy industry and politics, people are still a bit 'stupid'.
Subscriber
Andre 14 January 2023
@Gerben; The world has become a village and I do not believe that, except with a niche product, you can (only) produce for the local market (and what is local? I think Berlin, London and Paris are also local).. .
Subscriber
Gerben 15 January 2023
@Andre, the EU is bigger than Berlin and Paris; 27 countries!
Subscriber
Roy 15 January 2023
Stop it!. Here is the best land for agricultural use. All movement is only very harmful to the environment. Moreover, the Dutch economy will receive a huge blow. Are you going to pay that money?
Pete 28 January 2023
'Clearing dairy farming can't be true'

it's true

we worry about NOTHING, there is no reason but the mosquito to hide the elephant
everything is determined Right betrayal, left it won't get:
VVD

Attack on the left has begun: VVD extreme left liberal
Farmers just fall for it

how stupid can you be..
You can no longer respond.

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