Each farmer is good for a million

When it was announced last year that 1 in 5 millionaires in the Netherlands is a farmer, the sector reacted rather indignantly. These figures would have been completely misinterpreted by the stage. After all, the farmers' money would mainly be in the land, and not so much in the bank account. Nevertheless, Dutch farmers are certainly good for a million. 

Dutch agricultural exports booked in 2017 a record of €91,7 billion, a plus of 7% compared to the previous record from 2016. This makes the Netherlands the largest agricultural exporter in the world after the United States (US). An unprecedented achievement from our little country. With just 55.000 agricultural and horticultural companies, which manage only 0,7% of the world's agricultural surface, this is almost incomprehensible.

Of course, the export value is not entirely generated on the farm. The value of meat, dairy and plants increases when the raw materials are processed in the chain. For example, when milk is processed into cheese, carcasses are filleted into fillets and potatoes are cut into chips. However, the primary producer is the crucial link in the chain. Perhaps even the drive shaft, because without raw materials no processing. And without processing, no export.

Priceless
Dividing the export value (€91,7 billion) by the number of producers (55.000) results in an amount of: €1,6 million. In other words: on the back of a cigar box, each farm represents an export value of €1,6 million. Only artists and football players surpass this. All farmers together account for many billions. This makes them invaluable for the Dutch economy.

According to Statistics Netherlands (CBS), agricultural exports amount to €100,8 billion, when agricultural-related goods are also included (such as the export of milking robots). The related knowledge sectors can flourish thanks to the primary agricultural sector in the Netherlands. The well-organized countryside is an ideal testing ground for these companies to test and launch innovations. And then they can export it to emerging markets, such as China and Brazil.

nurturing farmers
Dutch farmers often cherish progress and are therefore open to new techniques. In addition, the 'strict' business climate means that Dutch farmers have already encountered challenges that countries such as China will only have to choose in 10 years' time. The 'critical' consumer in the Netherlands also contributes to the export success. The Chinese are licking their fingers at our safe pork. A little social resistance is not so bad, although it must be manageable. 

The Netherlands has traditionally been a farming country and, in my opinion, it should remain that way. When the agricultural sector shrinks drastically, production moves abroad. The related sectors will then also move along. In this way we erode our economy and shift the environmental pressure. Therefore, let us cherish our farmland and continue to export. That provides The Hague with a nice pocket money. By the way, farmers certainly won't get rich from it. For them it is often: 'work hard and earn a little bit'.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness and Food Business. He also closely follows the raw materials markets and focuses on animal proteins such as dairy and meat. He regularly interviews leaders from the agricultural sector and the food world.

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