Fair meat price leads to higher income for livestock farmers

As a cattle farmer, who drinks coffee with the family or staff at the kitchen table, wants future prospects, appreciation from society and a good income through a fair price. All this is within reach if LTO Nederland supports the proposal for fair pricing, which was presented to the House of Representatives by the TAPP Coalition on 4 November.

Written by: Jeroom Remmers, director of TAPP Coalition.

Nearly 70% of the Dutch want a fair meat price for the environment and the farmer, according to a sample of 4.730 people (Electoral Compass 2018† The best translation of this wish is to return half of the additional costs to farmers through a transparent (and controlled by the Dutch, farmers and the TAPP Coalition) 'Fonds Fair Food Prices'. If the House of Representatives votes in favor of a motion calling for this on Thursday 14 November, €2021 million will be received annually by 500 livestock farmers from 25.000. For this, however, it is necessary that LTO-Dier supports TAPP's fair meat price on Tuesday 12 November. What unfortunately cannot be done via the market (a fair price), must then be done via the government.

a lot of support
The proposal is already supported by dozens of diverse civil society organizations, which together have more than 1 million members. An example is the dairy farmers' union GRONdig, which represents approximately 1.000 dairy farmers. Last week it also appeared that the proposal is supported by a majority of the Dutch population, provided that in return vegetables, fruit, potatoes and meat substitutes go to a VAT rate of 5%, farmers are generously rewarded for efforts in the field of the environment, nature and animal welfare and low incomes are compensated as food becomes more expensive. This was revealed in a poll of more than 19.000 readers of the Algemeen Dagblad (63%).

Voters for government parties support this plan with a percentage of 54% to 62%, with VVD voters being the most enthusiastic. That was evident from a DVJ opinion poll for TAPP. Organizations work together in the fields of agriculture, food, health, the environment and animal welfare. If LTO Nederland supports the plan, then there will be a rock-solid coalition that will ensure broad political support in the coming years. We are talking about almost as much money as all European agricultural subsidies for the Netherlands put together. 

Fair price
The social costs per 100 kilograms of chicken, pork and beef or veal are €0,20, €0,45 and €0,57 respectively. This is apparent from a report by CE Delft, commissioned by TAPP Coalition† This organization advocates a true price for animal products. The social costs are not (yet) included in the price for meat and are caused by, among other things, greenhouse gases, particulate matter, nitrogen, loss of biodiversity and animal diseases. We therefore propose to introduce a consumption tax on meat, and at the same time reduce the VAT on vegetables, fruit and meat substitutes by 4%, which is what Greenhouse Horticulture NL and the fruit sector also want.

The tariff for chicken meat, pork and beef is currently differentiated according to the external environmental costs. This means that meat will become on average €0,16 per ounce more expensive in 2021 and €0,34 in 2030. In 2030, environmental costs for, among other things, CO₂ included in the meat price. According to CE Delft, this will reduce meat consumption towards the target from the Climate Agreement and will result in a reduction of 4,2 million tons of CO₂equivalents, of which 2,7 million tonnes in the Netherlands. This is more than removing all buildings from natural gas.

Grants
We propose to spend €600 million annually from the Fund on agricultural subsidies for the environment, nature, climate and animal welfare. This is partly because European agricultural subsidies will decrease sharply from 2021. This is an extra €10.000 per dairy farmer, €24.000 per pig farmer, €52.000 extra for the poultry farmer and approximately €7.000 per arable farmer. For sustainable frontrunners, this can add up considerably. In total, almost 30 new agricultural subsidies have been developed, together with CLM and partners of the TAPP Coalition. See TAPP Coalition for details. They are proposals; all details can be filled in together with agricultural organizations and the Ministry of Agriculture, Nature and Food Quality.

It offers livestock farmers a new revenue model, given that a new balance has to be found for climate and nitrogen measures, natural laws, rules on animal welfare and circular agriculture. Minister Carola Schouten must ask the European Union to approve the subsidies. According to various state aid experts, the chance of this is high. Supermarkets and catering companies can also contribute directly or indirectly to the Fair Food Prices Fund.

Anyone who is disadvantaged will be amply compensated from this Fund. This includes, for example, butchers that receive a lower turnover and organizations that have higher administrative burdens. The nitrogen problem has also been considered. A compromise is that between 2021 and 2030 1% of the animal and phosphate rights will be bought up on a voluntary basis from existing or discontinuing companies (125% market value). Possibly a small part of the rights can be returned to the young farmers, if not 1%, but 1,1% of the animal rights is bought annually. 

consumption tax
It is therefore possible to enter a fair price. This consumption tax can be collected from the supermarket, catering industry and butcher's shop or the slaughterhouse or importer and annually yields a stable amount of more than €1 billion. Meat exports are exempt. The implementation is legally, economically and technically possible. Political parties must now make choices that are good for the Netherlands, farmers, the climate, the environment, nature, animal welfare, public health and lower healthcare costs. A fair meat price is part of this.

There is a well-thought-out, feasible and widely supported plan, which the House of Representatives can vote on on 14 November. Then the CDA or the VVD will also have to vote. What will become important in this regard is what LTO Nederland will decide on 12 November. Does LTO Nederland support the fair meat price that yields €600 million annually for farmers? The Netherlands could thus be the first country in the world with a fair meat price. For farmers and the environment. Exactly what Schouten was referring to in June 2019, when she wrote that food is too cheap and we are going to pay more for farmers and the environment.

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