VNO-NCW and MKB-Nederland call for supply chain agreements

Investing in sustainability requires agreements on sales, compensation, and risks. VNO-NCW and MKB-Nederland therefore call for cooperation across the agrifood supply chain. This cooperation should enable companies to link sustainability improvements to viable business prospects. Processors and buyers need certainty about volumes and market demand.

The business organizations issued their call ahead of the parliamentary committee debate on earning capacity and land policy on October 14. Their proposals build on the SER advisory report on the future of the agricultural system. The report focuses on a market-driven business model and cooperation across the supply chain.

Certainty for investment

Farmers and growers, processors, traders, retailers, and financiers depend on one another. Producers need a clear outlook for sales of their products. Processors and buyers seek certainty about volumes and market demand. By better aligning demand, supply, and investment, supply chain partners can establish agreements that support sustainability improvements. Several agrifood supply chains already use long-term contracts and compensation arrangements for this purpose. Partners also make agreements on sharing risks.

The right agreements depend on the economic structure of each product category. In some supply chains, long-term contracts and guaranteed purchases can support investment. In others, production volumes, processing capacity, or access to international markets are decisive. Responsibilities should reflect each partner’s role, influence, and capabilities.

Measuring sustainability consistently

VNO-NCW and MKB-Nederland call for shared key performance indicators, or KPIs, and measurement methods. These should build on existing certification schemes, indicators, and European methodologies.

Supply chain partners could then use the same data for agreements, market concepts, and financing. The data could also support government monitoring. Companies would therefore no longer need to submit the same information repeatedly for different processes.

Better coordination of measures

Companies and investments may face several sustainability challenges. The organizations therefore call for better coordination of existing and new supply chain measures. Investments and measurement data could then serve multiple purposes wherever possible.

The required sustainability performance provides the starting point for the necessary agreements and investments. Sustainability improvements sometimes generate benefits for society that companies cannot recover through product sales. According to the organizations, public funding may be needed in those cases.

Vno-ncw.nl