Favorable prices ease the pressure on farmers

The market for animal products is tight, and it shows in the prices. They remain strong—a welcome development for many farmers and growers. Although the costs for feed, energy, and manure disposal have risen sharply, the higher revenues offer at least some financial relief. At the same time, uncertainty persists: nitrogen policy continues to stall both sustainability efforts and business development.

Supply and demand out of sync

The animal sectors, in particular, benefit from the upward price trend. Since 2019, the Dutch livestock population has shrunk by over 2 percent per year, while global demand for animal protein continues to grow. Consumption in Europe is levelling off, but the gap between declining local supply and increasing international demand is widening. Government policy and chain agreements are expected to keep pressure on supply in the years ahead.

Nearly 1,700 livestock farmers have already signed up for the voluntary cessation scheme. Since the start of this year, production rights are also being skimmed when transferred outside the family. Farmers who switch to the Beter Leven quality label keep fewer animals per square metre. In return, they receive compensation, partly tied to feed costs. This creates a more stable income.

Outdoor access remains a stumbling block

Still, things aren’t going smoothly across the board. Many farms have yet to receive permits for the outdoor access required under the quality label. The nitrogen dossier continues to hold things up, preventing further sustainability steps—even when the willingness is there.

More room for innovation

Due to geopolitical tensions, food security is gaining prominence on the European agenda. Commissioner Hansen underlines the importance of the farmer as a food producer. At the same time, there’s increasing room for sustainable innovations such as Renure, a manure-based fertilizer alternative, and the Sectoral Intervention for Fruit and Vegetables. These developments allow the Dutch agri-food sector to keep strengthening a resilient, future-proof food system.

Read the full report: Favorable prices give agricultural entrepreneurs a strong boost
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