The tragedy of the commons: still relevant

The tragedy of the commons describes how complete individual freedom, in the common use of goods, leads to total under-utilization or over-exploitation of those goods. Especially when each individual strives to maximize his own utility, while the costs that lead to greater utility are distributed among all users.

Interestingly, this situation over the centuries stays current† If everyone goes for themselves, it can end badly for some or the entire group. Last week, this topic came up in a conversation, in which the following question was asked: does free market forces (in the sale of meat, egg and dairy products) actually contribute to collective prosperity and achieving the set climate goals?

Own result?
We see that supermarkets and their suppliers are developing new market concepts. Does the demand for non-GMO or the demand for regional raw materials add value to Dutch prosperity and environmental goals, or are they purely based on the entrepreneur's own results? The same applies to individual livestock farmers who focus on their own business operations. Do they undermine the prospects for the entire sector?

The answers to these questions are not easy to give. Naturally, companies have an interest in a good operating result and will look for favorable conditions. At the same time, companies have their own social responsibility and are expected to contribute to achieving the climate and environmental goals and maintaining the sector perspective.

Connect
For Nevedi, this means that animal feed companies must offer, and must continue to seek, alignment with market concepts that suit business-economically and also give meaning to social responsibility. The animal feed companies are often a facilitator to the market wishes, which are put on the table via the livestock farmers. It is becoming increasingly interesting to discuss whether answering this market demand makes a good contribution to collective prosperity, the environment and well-being. What role do our companies themselves play?

Nevedi will conduct this discussion with a view to the new policy plan for 2020 to 2025. In April, Nevedi will start a discussion with its members about important developments in the main sectors for meat, egg and dairy production. In the course of this year an exploration will take place into the direction of policy and approach. Other stakeholders will also be involved at a later stage.

All this with an eye for the commons.

Henk Flipsen

Henk Flipsen has been the director and figurehead of Nevedi since 2007. He grew up on his parents' closed pig farm and also fulfills several managerial positions in the Agro & Food chains. † Photo: Nevedic

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