Schouten widens the gap between farmer and citizen

On Monday 17 June, Minister Carola Schouten (Agriculture, Nature and Food Quality) presented 'her' vision of the future of the Dutch agricultural sector and how our food will be produced in the next 10 years. Apart from the discussion about circular agriculture, her 'tone of voice' was incorrect in my view. It widens the gap between farmer and citizen.

We have no shortage of catchy one-liners at Minister Schouten. Before the publication of the report 'On the road with a new perspective' she already spoke to the media about her hobbyhorse: circular agriculture. However, 1 point was filtered out at lightning speed: Food is too cheap and the farmer pays the bill. Do you see what I mean by those one-liners?

2 facts, 1 conclusion
Now the fact is that, coincidence or not, the Central Bureau of Statistics (CBS) also released new figures on consumer spending that same day. Since the VAT increase on food, it has been restless in the shopping world. Statistics Netherlands shows that our food has become 3,8% more expensive on average in May. The biggest increase in 10 years. The consumer was able to calculate quickly. Schouten's one-liner was immediately minted.

Personally, I believe that food is not too cheap at all. I assume that the price I pay in the store is justified. The farmer gets his share, just like the middlemen and the buyer. I also assume that the residue limit has not been exceeded and that animal welfare is in order. In the Netherlands you can assume that. As an agricultural journalist I know that reality is very different. At least in terms of price.

Skewed Margins
In the store I pay €2,05 for 1 kilo of potatoes. The farmer received a price of approximately €0,20 for the same kilo. This season maybe a little more, although the price is pretty fixed. It is no different with onions. I understand that costs are incurred; after all, the sorter and packer also want to earn something from it. Even if you subtract those costs from the price, the difference is still shocking. With milk, for example, that might be a different story, but with most products the margin distribution is very skewed.

In my view, it would have been better if Schouten had entered the interview with that knowledge. No higher consumer price, but a fairer distribution. That's where I think the error is. Step 2 is how all extra-statutory requirements are paid and what additional costs this entails. When a consumer realizes that this extra amount actually ends up with the farmer, the sympathy is also greater. It is not without reason that more and more people are buying locally.

Food is emotion
Food is power and emotion. Wars are fought, won and lost over it. In the dry summer, reports about expensive chips are invariably at the top of the newspaper pages. Shouting that this price must go up hits the consumer in his already attacked wallet. The comments from the consumers on Schouten's plan were therefore not tender. In terms of content, this was not even about circular agriculture, but mainly about how the message was conveyed. The sector is again one point behind in the Dutch agricultural premier league. A missed opportunity.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.