Four directions for development for Dutch farmers

The farmers' protests of recent months will undoubtedly lead to new agreements between farmers and horticulturists and the government. But do these agreements lead to a substantially better market position for our farmers and horticulturists? Four development directions for a better market position for our farmers and horticulturists.

1. Choose European customers 

Dutch agriculture and horticulture proudly presents itself as the second largest exporter of agricultural products worldwide: Dutch farmers and horticulturists feed the world† That is not entirely correct: more than 80% of the fresh products from Dutch soil are produced in Europe sold. That's fine: it fits in with the pursuit of circular agriculture and horticulture.

On the European market, competition is mainly based on cost price. However, the Netherlands is not a cheap production country and that will not improve in the coming years. How long can we keep that up? We need to gain more appreciation for our efforts in circular agriculture. First in the Netherlands, then in the rest of Europe. That will be challenging: in our main export countries, the preference for products from our own region is growing.

What can help with this is intensifying cooperation with individual customers. We see this more and more in the Netherlands. On a small scale, there are growers who deliver to a few PLUS stores in the area. Albert Heijn and Tasty Tom have been working well together on a large scale for years and Lidl and Kipster have found each other exclusively.

In our largest export market, Germany, we compete mainly on price and partnerships are looser. After all, it can always be cheaper. That is where opportunities lie: sustainable collaboration between producers and their customers almost always leads to lower chain costs and provides a breeding ground for innovations. This is beneficial for producers and their customers.

Finally: where farmers and horticulturists know for whom they are producing, discussions about scale take on a more meaningful context. After all, it is logical that a producer invests in order to be able to grow with its customers.

2. Choose quality

Dutch agriculture and horticulture communicate with great bravado how incredibly productive our farmers and horticulturists are: pig farmers raise 30 piglets per sow per year, we have cows that supply more than 12.000 kilos of milk per year, etc. That is impressive.

This attention to our productivity has a downside. First of all, this: buy an iPhone because Apple is so productive? Do you buy Dutch cucumbers because 250 per square meter are harvested? Why don't we pay more attention to the quality of Dutch products? Quality is a great selling point. Second, a producer who brags about his productivity mainly triggers a discussion about price. The farmer, on the other hand, who says that he produces the tastiest pork with great care for animal welfare, has a chance of a discussion that is not only about price.

We need to invest more in and communicate about quality: taste, nutritional value, etc. What if we succeed in enriching fresh products in such a way that nutritional supplements become superfluous? Then Dutch farmers and horticulturists actually supply products for a healthy lifestyle. Isn't that a great perspective for anyone active in agriculture and horticulture?

3. Step Out of Anonymity

The success of our agriculture and horticulture is based in part on our ability to standardize our products. This makes our sales and distribution networks extremely efficient. For our farmers and horticulturists, this success has a downside: their products are interchangeable and increasingly interchangeable with those of their foreign colleagues.

I know few sellers of fresh trade who can explain to me why I should prefer Dutch cucumbers over Spanish cucumbers. That does not do justice to farmers and horticulturists who want to make a difference with their products or with their production method. As long as we do not give such entrepreneurs a face and no special attention to their products, it will not be possible to realize higher prices for their products.

Let's encourage farmers and horticulturists to come out of anonymity and seek cooperation with customers who are willing and able to bring value from their extra efforts. The sales partners (slaughterhouse, dairy, auction, etc.) could actively help with this.

4. Integrate Goals

The choice for circular agriculture and horticulture is inevitable: we cannot accept that the production of our food depletes fertile soils and pollutes the air and water. We must cherish those resources. How? We will find out in the coming years. I see a parallel with housing construction. We are now building energy-positive houses, houses that generate energy on balance. Let's develop environmentally positive farms: farms that not only produce food, but at the same time contribute positively to the quality of soil, air and water.

The fourth challenge is to combine the pursuit of circular agriculture with the pursuit of sufficient productivity: after all, it must yield sufficient. I am optimistic: the Netherlands has everything it takes to become a guide country in this regard.

Meaningful Mission
And so a new, meaningful mission for our farmers and horticulturists takes shape: Dutch farmers and horticulturists make a substantial contribution to the food supply in Europe with the tastiest and healthiest fresh products that are produced in the most sustainable way.

It is up to our farmers and horticulturists, all those entering the fields and their buyers to give substance to that mission and to politicians to create a level playing field in Europe. So hand to the plow; let's hit the ranch with this mission.

This column was previously published in Trouw.

Ron Mulder

Ron Mulders is an interim manager and strategic advisor.

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