Agricultural sector is not a pathetic sector

Thousands of farmers who left their yard and went to The Hague to demonstrate. The initiative of Agractie turned out to be a great success. This national protest was therefore welcomed from all sides. Thumbs up along the way and also on social media there was a warm wave of sympathy (apart from the haters that are always there). Why?

For many years, Dutch farmers have had one legal regulation after another on their roof. As an entrepreneur, that drives you crazy. In addition, farmers are increasingly portrayed as bogeymen; when it comes to animal suffering, factory farming and environmental pollution.

It is now clear that the agricultural system in the Netherlands is reaching its limits. Due to the low agricultural prices, among other things, farmers see upscaling as the only way out. For that they are heavily in debt, which feels like a noose around the neck; especially when the government keeps coming up with new rules and stricter requirements.

Not a pathetic sector
However, you would almost forget that we are talking about the strongest economic sector in our country. The Netherlands is (after the United States) the largest agricultural exporter in the world. In 2018, exports amounted to €90,3 billion worth of agricultural goods. And then another €9,2 billion will be added for agricultural-related goods, such as milking robots or machines for the food industry.

So we are not talking about a pathetic sector. You did get that image after the demonstration day. As a global player, the sector will have to continue to innovate. Everyone understands that the nitrogen pressure must be reduced, and it is also clear that in our small country there is a limit to the ever-expanding agricultural companies. However, there are so many opportunities for a healthy restructuring. Look at technological developments; big data and artificial intelligence.

Make the difference
As a global player, we have to make a difference there. We are internationally oriented enough in the Netherlands to organize part of our production outside the border. Where there is space. Of course, the government should also pay attention to farmers who have to stop. No bureaucratic hassle of officials hiding behind the rules. Look for solutions together. Look together what can happen to the empty stables.

However, with a world population set to reach a staggering 2030 billion people by 8,5, the challenges facing the agricultural sector are enormous. Big changes are coming and I am convinced that our country will play a leading role.

Johan Geroms

Johan Geeroms is Risk Director at Euler Hermes, the world market leader in credit insurance and corporate debt collection. In his blogs, Geeroms often focuses on developments in the agricultural sector.

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