Facts

and Figures
2010
The Dutch agricluster
in a global context

A publication of:

Ministery of Agriculture, Nature

and Food Quality
Prins Clauslaan 8
P.O. Box 20401 | 2500 EK The Hague,
The Netherlands
www.minlnv.nl

Ministery of Agriculture, Nature

and Food Quality | June 2010 June 2010
Introduction
The agricultural sector is one of the mainstays of the Dutch economy. Flowers,
fruits and vegetables, cheese and other dairy products, meat and meat products,
beer, chocolate, starch derivatives, and seeds the Netherlands produces them all
in large amounts for markets the world over.

Changes in society at large impact the agricultural sector. Todays increasing

concerns about food safety, animal welfare, use of green spaces, and the
international context in which the sector operates all have an effect, as do new
ideas about the role agriculture plays in society. The Ministry of Agriculture, Nature
and Food Qualitys Department of Trade and Industry serves as a contact and
consultative partner for the agriculture industry. As such, the Department strives to
keep the Dutch agribusiness sector thriving, sustainable, and internationally
competitive in changing times.

This brochure gives an overall impression of the agricultural sector in the

Netherlands as well as current developments in the industry. The data was
provided by the Agricultural Economics Research Institute (LEI), part of
Wageningen University and Research Centre. Given the diversity of sources used,
the latest figures were not always available when the report was drafted. For this
reason, the tables do not always tally with the text. Further discrepancies are due
to differences in the definitions used by the various sources.

1
2
Contents

Innovations in The Netherlands

Less waste, more profits 6
Heat, electricity and CO2 in a highly efficient exchange 10
Algae Park: a project that keeps its promises 14
Biogas for an energy-neutral dairy chain 18
Mushrooms and trains from hemp and flax 22
Building with greenery and glass: buildings as generators of energy 26
New housing for Greta 21 30

1. The Netherlands 34
1.1 Area and population 35
1.2 Political structure and government 35
1.3 Economy 36
1.4 Agricultural sector 36
1.5 Household consumption 38

2. Agricultural trade 40
2.1 Development 41
2.2 Composition 42
2.3 Trading partners 44

3. Developments in the agricultural sector 48

3.1 Agricultural and horticultural operations 49
3.1.1 Number of businesses 49
3.1.2 Farmland 51
3.1.3 The environment 51
3.1.4 Production value 51
3.1.5 Productivity 51
3.1.6 Organic agriculture 52
3.1.7 Regional products 52

3
3.2 Fisheries 52
3.3 Food, drinks, and tobacco industry 55
3.3.1 Companies, employees, and sales volumes 55
3.3.2 Multinationals and investments in the Dutch food,
drinks and tobacco industry 56
3.3.3 Retailers and the hospitality industry 60
3.3.4 Organic 61

4. Research and education 62

5. Public policy 66

Appendices 70

Credits 76

4
5
Less waste,
more profits

Sustainability does not necessarily cost

more. In fact, a clever approach can help
environmentally-friendly businesses make
money. An excellent example is
Ten Kate Vetten, an innovative a grologistics
firm operating from Musselkanaal, in the
province of Groningen.

6
Ten Kate Vetten produces lard from the by-products of slaughterhouses.
Pork fat and skin is heated to produce a variety of fats used in the food
industry. The by-products also contain collagen, a protein used to produce
gelatine. Before the company moved to its present premises, Ten Kate
transported collagen by refrigerated truck. We didnt get much for it,
says Goedhart Borgesius, deputy manager of Ten Kate.

Ten Kate moved to its current premises in 2002. The brand-new premises
were not connected to the gas mains, and large pipes ran to nearby Gelita,
a German company that produces gelatine from Ten Kates waste. The direct
transport by pipeline eliminated the need for about four thousand truck
runs a year.

When we developed the new plant, our prime concern was how to optimise
its efficiency. Cooperation with Gelita proved the solution. The German
company built a factory behind Ten Kates premises and have since been
delivered batches of protein-containing waste. We dont make the gelatine.
Its not part of our core business and it doesnt fit in with our organisation,
Borgesius explains.

The arrangement benefits both businesses. Borgesius: Gelita benefits

because it is supplied the protein at processing temperature. We benefit
because we get more money for our waste, and because we have cut
transportation costs by three to four thousand truck runs each year. And
then there is the environment. While that is certainly a bonus, its not what
we set out to achieve. Were not driven by environmental considerations
our concern is making money and this happened to present a good
opportunity.
After removing the protein needed for the production of gelatine, Gelita
returns what is left of the protein pulp to Ten Kate. We use the last pulp to
produce flavourings for the pet food industry. This leaves Ten Kate with
virtually no waste.

Ten Kate is an extraordinary business, not just for its intensive cooperation
with Gelita. It is also remarkable for it being independent of the gas mains.
The pork products are heated with steam from Avebes Dobbestroom total
energy plant. This plant supplies steam and power to the businesses on the
industrial estate and they all benefit from substantial savings on their
energy bills. Ten Kates bill was cut by 35 percent. And because the plant also
saves on gas, Ten Kates CO2 discharge was reduced by 55 percent.

7
It has made the industrial estate a leading innovator in Dutch agricultural
logistics solutions. The transport and processing of agricultural products
has huge significance for the Netherlands. The agricultural industry
accounts for 10 percent of the Dutch domestic product. Of the 650,000
people that work in the sector, two thirds are employed in product
distribution and processing industries.

The Netherlands is the worlds second largest exporter of agricultural

products after the United States and in some markets it is the leading
market player. This is hardly surprising considering the Netherlands
accounts for 80% of the world trade in cut flowers and bulb flowers. But the
Netherlands is also the worlds biggest trader in coconut oil, cashew nuts
and cocoa. Its innovative agricultural sector combined with an intricate
logistics system enables the Netherlands to remain one of the worlds
largest exporters of agricultural products.

8
9
Heat, electricity and
CO2 in a highly
efficient exchange
In a polder in the Netherlands a special
partnership has sprung up between
glasshouse harvest their crops, electricity
and CO2, while the data centre will harvest
its data capacity and heat.

10
The growth of ITC in our economy has made the IT sector a major user of
electricity with an electricity consumption that is expected to double every
six years. At present the sector accounts for 7.5% of energy consumption in
the Netherlands. Pieter Duijves and Kevin Burton decided to do something
about this situation, so they built Parthenon, a sustainable data centre in
Wieringermeer in the province of Noordholland. This data centre, which
houses large-scale traffic and storage of internet data, requires an enormous
amount of electricity. Not only to keep all the computers running but also
to feed their cooling systems. The new data centre will be very efficient in its
use of electricity, but not only that. Through the InnovationNetwork of the
Ministry of Agriculture, Nature and Food Quality the two entrepreneurs
found Agriport 7, an agribusiness complex in the polder. A group of
glasshouse growers there will supply the data centre with the surplus energy
that is being produced. The data centres computers cooling systems
generate a lot of heat that in return will benefit the glasshouse growers.

Symbiosis between greenhouses and datacentre

summer

greenhouse datacenter

heat

winter

greenhouse datacenter

heat
seasonal storage in shallow sand layers

Source: Innovatienetwerk

11
Although the data centres computers require less than a fifth of the
electricity supplied, this is still a substantial amount of kilojoules. The
whole process will also release CO2 that can be used for production under
glass. This makes for a multiple symbiosis between innovative glasshouse
cultivation and what could rightfully be called the most sustainable data
centre in the world.
Combined heat and power generation or CHP, is a much used and efficient
technique in the glasshouse sector for the generation of heat and CO2,
both of which are needed for glasshouse cultivation. CHP also produces
electricity, often much more than the glasshouse grower needs. This surplus
energy is often sold back to the national grid whereas the surplus CO2
generally ends up in the atmosphere. Under the new partnership the data
centre sells its surplus heat to the glasshouse growers that do not have a
CHP system themselves and get their CO2 from growers who do. These
growers in turn supply the data centre with their surplus electricity and the
cycle is closed (see figure). The project also includes a storage or buffer tank
built underground to ensure that the hot and relatively cool air can be
accessed at the right moment.
There are still many hurdles to be overcome before the symbiosis can be
realised. But the collaboration between the glasshouse sector and the data
centre and the Wieringermeer location provide promising opportunities
that would remain unused in other partnerships. The data centre produces
low-value heat, between 35 and 40 degrees Celsius. Low-value heat cannot
be used for every purpose but is ideal for glasshouse cultivation. The
physical proximity of producers and suppliers of heat and CO2 is a major
advantage. To make the most of this symbiosis local conditions should
benefit both partners, which is the case here. The glasshouse growers in the
Agriport 7 location will soon have two 150 KV transformers in place, which
is necessary for the double connection to the national grid they require for
the exchange of energy with the data centre. Wieringermeer, which had
already proved its worth for the glasshouse horticulture sector, is also an
ideal location for a data centre because of the glass fibre cable network
there and its proximity to Amsterdam, Europes leading internet hub.
The building work will start in the first months of 2010. Enthusiasm for the
project has not only been shown by the partners themselves, but also by the
Noord-Hollandse Milieufederatie (Environmental Federation of North
Holland) which has calculated that it will reduce CO2 emissions by 12200
tonnes a year. And Dutch Minister of Agriculture, Nature and Food Quality,
Gerda Verburg, also welcomed the initiative, calling the cooperation
between the greenhouse complex and data centre a splendid example of
cross-sector innovation.

12
13
Algae Park:
a project that can
live up to promises

Four years of advanced research into

obtaining chemicals and fuel from algae,
with a staff of six or seven and a budget of
seven million euros.
This is the Algae Park project due to start in
Wageningen in mid-2010. It has been made
possible by investment from b usiness,
government, including the Ministry of
Agriculture, Nature and Food Quality and
the Ministry of Economic Affairs, and
Wageningen University and Research
Centre.

14
It is certainly a most promising project. Algae have proved their worth as
providers of food acids which are already being produced on a fairly large
scale. But this use of algae known as heterotrophs which are cultivated in
the dark, is just one of the possible applications. In addition, the cultivation
of phototrophic algae which need light and CO2 promises to provide a
broad range of products, the best-known being bio-fuels and chemicals.
This category also includes unsaturated fatty acids, which are now being
used in a Dutch testing plant as raw materials for alkyd paint. Algaes
potential is so great that interest has already been shown by people
planning to set up an airline business that will exclusively use algae fuel.

It is then not surprising that the reaction of people directly involved, like
business development manager Brender Isral of Wageningen UR, is to
temper expectations which may be too high.
We have just had to deal with all the hype about biofuels, explains Isral,
but were still a long way from concrete applications that earn money.
This has lessened expectations after the first great rush of excitement, but
she does not think this a bad thing, because with the creation of AlgaePark a
large number of practical applications will be studied in a realistic way.
We plan to compare four existing phototrophic algae cultures, research
them and improve them, to eventually produce one new system. Or perhaps
even two.
The four systems already make it possible to produce bio-fuel and a whole
series of components for the production of food and feed, such as fatty
acids, sugars and protein.

The algae are cultivated in long, horizontal or vertical transparent tubes, set
in flat vertical panels or large pools in the open air. But the problem is that
in all cases the costs are still much too high.
With the technology we now have available we can produce a kilo of
biomass in a large scale process for 4 euros. In the coming years we would
like to reduce the cost price to a tenth of that, to 40 euro cents. This can
only be done by ensuring we make the raw materials go further. In a smart
process known as cascading, in addition to biofuels, all kinds of end
products can be produced in successive stages from one kilo of biomass (see
table). First high-quality, then lesser quality products, until we get to
biofuel.
The technology isnt there yet, cautions Isral, but if we succeed our
calculations show that from costs of 40 euro cents we can produce to a value
of 1.65 euros. This is the light at the end of the experimental tunnel.
You could say that you can only produce biofuel from algae profitably if the

15
fuels come at the end of such a cascade process, says Isral. The prospects
are so good that a large number of businesses have joined the project,
including multi-nationals like Unilever, Friesland Foods and Total.
The business development manager emphasised that AlgaePark would be
an open research park.
The fifth system we aim to develop will of course first be available to
participants who have invested in it. But any business is welcome to take
part, or contact us about specific commissions.

The return on 1000 kilos of microalgae

(bulk chemicals and biofuels)

Lipids 400 kg.

of which:
- Chemical starting
- substance 100 kg. 200
- transport fuel 300 kg. 150

Protein 500 kg.

of which:
- for foodstuffs 100 kg. 500
- for feed 400 kg. 300

Polysaccharides 100 kg. 100

nitrogen removed (N) 70 kg. 140
oxygen produced 1600 kg. 256

Production costs per

kilogramme biomass: 0.40

Total estimated value

per kilogramme biomass: 1.65

16
17
Biogas for an
energy-neutral
dairy chain
Dutch dairy plants collectively use as much
energy as a medium-sized town. The dairy
cooperative FrieslandCampina believes that
a more sustainable approach is possible.
By 2020 the cooperative plans to generate
all the energy required for the production of
cheese, milk and other dairy produce in a
sustainable way and to involve member
farmers in this as much as possible.

18
FrieslandCampina is a cooperative of dairy farmers. Our members have
various possibilities for generating sustainably-produced energy, says
FrieslandCampina representative Jaap Petraeus. They own land on which
they can build windmills, manure from which methane can be extracted
through fermentation and large roof areas on which solar panels can be
fitted. We have pledged our commitment to using green energy, and ideally
we want to obtain this from our own dairy farmers.

FrieslandCampina wants to exclusively use green energy by 2020. The

industry has made an agreement with the government to ensure at least
twenty percent of our energy is sustainably produced. We dont think that
target is ambitious enough and believe that one hundred percent
sustainable energy use is also possible.

Companies that produce sustainable energy, whether it is gas from the

fermentation plant or electricity from a windmill, will be given certificates
which they can sell. Now it is primarily the major energy companies that
buy up the certificates. They can then show the papers to an accountant who
must check if the green energy delivered by the energy companies has really
been purchased. We will also be buying certificates from our members and
want to offer them at least a market price for them, but preferably a price
that is better. We are working to ensure our members get a better price for
the milk they produce, and for the energy generated by them. For this
purpose FrieslandCampina opened an energy contact point in 2010.

The idea of operating an energy-neutral dairy chain comes from the

platform Courage, an initiative of the Dutch Dairy Association (NZO) and
the Dutch Confederation of Agriculture and Horticulture (LTO Nederland).
Petraeus: They came up with ideas. In 2008 we as a sector considered the
future and identified three important challenges: energy/climate, cow
welfare and biodiversity. We formulated specific objectives for each of these
challenges. For energy/climate we arrived at an energy-neutral chain in
2020. Energy neutral means we want to ensure all the gas and electricity
used in our factories and on member farms is produced carbon neutrally.
Preferably via our own dairy farmers.

In theory, dairy farmers should together be able to produce sufficient energy

to make the dairy chain carbon-neutral. Dutch dairy cows produce 35
million tonnes of manure per year. Fermentation of all this manure can
produce 820 million cubic metres of gas, which is three percent of Dutch
natural gas use.

19
Courage has since come up with new ideas that could raise the amount of
energy produced by dairy farmers. According to the think tank it will be
possible to recover methane from air in the cow stalls. Methane is released
from the cows rumen, and by filtering this air you can kill two birds with
one stone. Methane, a powerful greenhouse gas, is prevented from being
released into the atmosphere and it can be used to generate energy.
According to Courage, the air in the stalls could also be used to produce
heat. The cows bodies warm the air in the stalls, and this warmth could be
used to heat houses in the vicinity of the dairy farm.

Petraeus considers the ideas with interest. Thats Courages job. They have
to come up with a hundred plans, of which we may use perhaps ten. To
achieve our objective of becoming carbon-neutral in 2020 we will have to
apply techniques that have already demonstrated their worth. And certainly
now the milk price is so low, farmers cannot afford to throw money away.
We can only convince our members with a good business case. An invest-
ment should generate money within a couple of years. Solar panels are still
three to five times more expensive for this to be achieved, but these prices
are expected to fall, so that diary farmers will be able to afford solar panels
on the roofs of their cow stalls. The first examples of this can already be
found and there is hope for the future.

Energy produced by dairy farms in the Netherlands

Manure from dairy and breeding cows

for milk prod. in stall 35640820 tonnes/year
Energy use dairy farms 8.7 PJ/year
Energy use dairy processors 17 PJ/year

Conversion through fermentation

Amount of biogas per tonne of manure 23 m/year
Combustion value of biogas 24 m/year
Biogas from manure 820 mil m
Energy potential manure 19.7 PJ/year
Energy potential co-fermentation 4.5 mil tonnes coprod. 39.3 PJ/year
Energy potential co-fermentation 18 mil tonnes coprod. 100 PJ/year

Source : Courage

20
21
Mushrooms and
trains from hemp
and flax

The use of natural fibres is our first step

towards a composite that fully meets the
cradle-to-cradle principle, says director
Willem Bttger of the company NPSP in
Haarlem. Ten years ago the company
started building a flax-reinforced
catamaran, hence the name Nature
Powered Speed Products. NPSP is now a
leader in the application of natural fibres in
composites.

22
Composites are materials that comprise several components. They are often
combinations of fibres with a synthetic resin. Composites are a popular
high-tech material because they are strong and light and can easily be
manipulated. Lightweight racing bikes are made of carbon fibre composi-
tes, the same material used to construct the Formula 1 racing cars.

NPSP makes composites based on natural fibres. Nabasco, nature based

composites, is the brand name for the materials that the company produces
and which contain natural fibres including flax and hemp. In spring 2009
NPSP started manufacturing composites where the resin also has an organic
component, namely one quarter soybean oil.

It is not easy to find an organic resin that meets all the characteristics
required for a composite, says Director Willem Bttger. It is a tall order. It
has to be UV-resistant, durable, with good manipulability. Ideally, it should
also be a material that can compete with other bulk products in terms of
price. We cannot yet work with fully organic materials, but we are leaders in
Europe with our current processes. The first products made of the new
material can already be found in the streets around the business headquar-
ters. The municipal authorities in Haarlem commissioned NPSP to make
the street name signs from Nabasco.

Bttger: We see the use of natural fibres as the first step towards a compo-
site that fully meets the cradle-to-cradle principle. We are now half way
there, with a product that is easy to dispose of and to incinerate.
Incineration, for example, is a big problem with polyester fibre, a traditio-
nal composite because the glass fibres do not burn. They melt and form a
dirty layer in the oven. And separating the resin from the fibres is also very
difficult. After youve used it you cant use it for anything else. Our product
doesnt have that problem. It can be incinerated with no difficulty and can
therefore at the end of its life still deliver green energy.

Another advantage of the organic composites is that they are lightweight.

The Dutch Railways ordered train noses from NPSP, and because they weigh
less, the trains use less energy. NPSP also makes the mushroom-shaped
signposts for Dutch Automobile Association bicycle paths, solar facades and
special loudspeaker horns. Most customers want to pay more because they
consider they are fulfilling a role to society by purchasing these products.
For the speaker horns, the special quality of our product was important as
natural materials deliver better sound quality.
Last year NPSP won a competition for innovative ideas and was awarded
some 400,000 Euros from the Ministry of Agriculture. Nature and Food

23
24
Qualitys programme for Small Business Innovation and Research. Of
course, thats not much for a big company, but for us it is. We can use that
money for research to improve our products even more. Our final objective
is to make a fully-reusable product with the help of solar energy. Then all the
circles will be complete. We can only keep using fossil fuels for another forty
years, we must have made some progress in that time.

25
Building with
greenery and glass:
buildings as
generators of
energy

Light, heat, air quality, living, working and

greenery all rolled into one: an entirely novel
mixture. Thats what the Bouwen met
Groenen en Glas (building with greenery
and glass) project is all about. The
InnovationNetwork, the do and think tank
of the Ministry of Agriculture, Nature and
Food Quality, has been working on the
concept for years. Several architects have
shown an interest. Designs have been made
for a wide range of uses but tangible results
have also been delivered. Houses for
instance, an office, and a college building.
26
Project leader Peter Oei of the InnovationNetwork particularly welcomes
the attention from architects and project developers. It is after all a new
concept, an entirely different way of thinking. In such cases it is important
that those with a key role in spreading new ideas can see the benefits.

What is so special about this building concept? We aim to make buildings

that generate energy, literally as well as figuratively, Oei explains, using
greenery and glass. People in these buildings will feel better, perform better
and absentee rates will be lower than in conventional buildings. This is
because interiors are bathed in daylight, air quality is better and people can
work in a green environment. Moreover, and this is the main reason behind
the idea, these are energy-neutral buildings.

Novel techniques mainly pioneered in the glasshouse sector play a pivotal

role in this new approach to building. For years the sector has been working
to reduce its dependency on fossil fuels. Under the Greenhouse as Energy
Source Programme, a new solar energy saving and storage technique was
devised. In summer when the sun shines, the heat is stored up for use in
winter when there is less sun. This way, instead of absorbing energy,
glasshouses can generate energy. The same principle is applied in the
Bouwen met Groen en Glas project. But here, other factors play a part too.
Like the quality of the indoor climate for people using or living in these
buildings and the lower building costs. The project has gained momentum
and things are now moving fast.

The techniques for making the best possible use of light and heat have
advanced rapidly with truly astounding results, says Oei, when asked if glass
is a major cause of heat loss in buildings compared to insulated cavity walls.
The insulating properties of glass have improved. UValues, or the amount
of heat lost through one square meter of glass for every degree difference in
temperature, have lowered significantly from 5.8 for single pane windows
to 1.2 for coated glazing.

Also, heat exchangers, thermal buffers and screens are used to regulate the
indoor climate. The incoming heat is used down to the last calorie. This
allows the creation of a climate in which plants can thrive. This concept is
being applied in the Bouwen met Groen en Glas projects. Plants indoors
will absorb the harmful substances, filter airborne particles, regulate
humidity levels and reduce heat. If you weigh the costs and benefits of this
approach to building you should also look at the benefits for the people
living and working there: their sense of well-being is enhanced by being in a

27
green environment and in an agreeable climate.

The pros and cons can also be approached in a different way, Oei says. It is
much cheaper using glass as a building material. Not only that, but building
under glass also has advantages. The timber used indoors need not be painted
or treated. And open spaces are dealt with differently. Corridors and stairwells
need no longer be inside the building, they can be placed along the side in
light glass-covered spaces or in glass by-passes where temperatures need not be
regulated so carefully as inside. They may be anything between 17 and 23
degrees. And putting these routes along the outside allows for a smaller more
compact core of the building. And so it will be cheaper because the building
costs per square metre are much lower for glass than for brick or stone.

Last year the third extended edition of the book on greenery and glass projects
was published, with examples in the residential, school, health care and trade
and industry sector. The book* has now been translated into English, French
and German. Oei is quite pleased. In the space of two years, 3,000 copies of
the book have been provided to architects and people in the building trade.
This concept clearly has a future!

* Alexander van de Beek en Huub ter Haar: Bouwen met Groen en Glas in Uitvoering; Boxtel, Uitgeverij Aeneas, 2009; ISBN 978-90-75365-94-8.

28
29
New housing
for Greta 21
If a cow could design its own housing, what
would it look like? A group of innovative
Dutch farmers and dairy farms have
cooperated to tackle this question. Their
answer: cows want fields under a roof
and now we can build them.

30
For the past three decades, cubicle housing has been the preferred system in
the dairy cattle sector, combining separate stalls with free roaming areas.
While the system still meets todays needs, sustainability is a new factor for
consideration. So, can cubicle housing be modernised and improved for
cows, the environment and farmers? Courage, a foundation associated with
the NZO national dairy organisation, and LTO Nederland, the Dutch
Federation for Agriculture and Horticulture, stimulate innovation in Dutch
agriculture by putting ideas into practice. Together with the Dutch Ministry
of Agriculture, Nature and Food Quality and Wageningen Universiteit and
Research Centre, the Federation carries out relevant research.

We asked scientists to define the biological needs of cows and the extent to
which cattle housing meets these needs, explains Carel de Vries, project
leader at Courage. Cows are happy where they are now. They have water,
fresh air, light, and food. But if you were to let a cow choose between a
stable and a field, it would take the field where it has more room, where it
can choose the animals it can lie down with and where the soil is comfor
table and soft.
Courage therefore studied loose housing systems, without cubicles, where
cows can roam freely on soft flooring. A number of these systems have
already been built in Israel and the United States, but they may prove
unsuitable in the damp Dutch climate. Aside from hygiene problems, cows
do not like floors to be damp from urine and excrement.
De Vries: One of the key questions is how to keep the surface dry. Compost
barns may provide an alternative. In compost barns, the bacteria that grow
during composting produce heat and keep the floor warm and dry. The
composting process starts by regularly turning the excrement on the floor
with sawdust or straw. The floors dry and warm top layer provides a
pleasant underground for the cows, and benefits their health, as it reduces
the spread of diseases, including the bacteria that cause mastitis.

Courage commissioned Wageningen University to study how much litter or

straw was needed to continue the composting process and produce enough
heat to keep the stables dry. The study group also looked at costs, and how
much labour it involved. Our concern is not just the cows welfare. We also
look for environmental solutions that will benefit the farmers. After all,
innovation should not lead to problems elsewhere. Plastic flooring could be
an option, combined with a manure removal machine. Such soft, comfor
table floors might be easier to clean.

Courage also designed a luxury loose stable, the so-called cattle garden. This

31
design should not only keep cows happy, but also benefits local residents. The
cattle garden offers cows shelter under trees, shrubs and in secluded areas. De
Vries: People spend fortunes to see animals in a zoo. We talked with zoo
architects about how they create viewing areas that appeal to visitors. With this
in mind we designed an area that is perfect for your Sunday afternoon stroll.
And while it is still a production area, it doesnt look it. The biggest benefit is
public appreciation, which is needed for businesses operating in Hollands
densely populated areas.
We know the loose stables concept appeals to farmers. They are keen to solve
leg and foot problems from which their animals suffer. I am certain it will
succeed. Loose stables will replace cubicle housing in the future. The first
Dutch compost barn is now up and running. Over the coming years we will see
an increase in these stables operated by pioneers. It is the next logical step.

32
33
1 The Netherlands

34
1.1 Area and population
The Netherlands is one of the smallest countries in the European Union. More
than half of its total surface area of over four million hectares is used for
agricultural purposes, nearly one-fifth is water, and 12% is forested or open,
natural terrain.

Nearly 25% of the population of 16.5 million inhabitants is younger than 20.
Life expectancy at birth is 78 years for men and 82 years for women. With an
average of 488 inhabitants per square kilometre, the Netherlands is one of the
most densely populated countries in the world. A little over two-fifths of the
people live in highly urbanised areas, with one-fifth in non-urban areas. The
biggest city is the capital Amsterdam, with 750,000 residents, followed by
Rotterdam and The Hague with 580,000 and 476,000 inhabitants, respectively.
One-fifth of the total population has roots outside the country, with one-half
of this group being of non-Western descent. Within this group, the majority is
of Turkish descent, followed by Surinamese and Moroccan.

1.2 Political structure and government

The Netherlands is a constitutional monarchy, with Queen Beatrix as current
Head of State. The form of government is a parliamentary democracy with a
bicameral legislature. The 150 members of the House of Representatives are
chosen by general election, and the 75 members of the Senate are chosen
indirectly by Provincial Councils, the legislatures, of sorts, of the 12 Dutch
provinces.

Agriculture has to work with government, but it also has to deal with
regulatory industrial organisations, made up of representatives of employer
associations and unions in a specific sector. These organisations can issue
binding instructions for the relevant product group, not only for primary
production, but also for supply, trade, and processing. Examples are the Higher
Commodity Board for Arable Farming, the Product Board for Horticulture, the
Dutch Dairy Commodity Board, and the Product Boards for Livestock, Meat and
Eggs.

The Netherlands has a long history of working towards international

cooperation. It was one of the six original countries to found the European
Union in the 1950s.

35
1.3 Economy
The Netherlands is one of the worlds wealthiest nations, a country which
excels at trade and boasts high-quality financial and professional services.
The economy is internationally-oriented, and after the U.S. and France, the
Netherlands is the third largest exporter of agricultural products. The
countrys good transport infrastructure makes this possible. The Port of
Rotterdam is the largest in Europe and second largest in the world in terms
of cargo transfer, making the Netherlands a major transit country for all
sorts of goods.

Labour productivity is high and the investment climate is good. It is

therefore not surprising that many international companies are based in
the Netherlands. The Gross Domestic Product (GDP) was over 594 billion
EUR in 2008. The global recession is expected to cause a decrease of 3.5% in
2009 and 0.25% in 2010; this is slightly more than for the Euro countries as a
whole.

1.4 Agricultural sector

In 2007, the agricultural-industrial complex (i.e. agriculture, horticulture,
and associated products and services), with almost 48 billion EUR,
represented nearly 10% of the Dutch economy, measured in added value.
This was slightly less than in 2001. Although the added value of the
agri-complex had increased by 18% since that year, the entire economy had
also grown, and by 25%. At the same time, employment in the sector
dropped by 6% (45,000 labour years), while total employment grew by
nearly 2%.

36
Key figures for the Dutch agri-complex, 2001 and 2007

Added value Employement

(factor costs, in billions of EUR) (in thousands of
labour years)

2001 2007 (r) 2001 2007 (r)

a) Landscaping, farm services, and forestry 3.7 4.0 75 64

Proportion of national total 0.9% 0.8% 1.1% 0.9%

b) Foreign raw materials 15.3 18.3 226 218

Proportion of national total 3.8% 3.7% 3.4% 3.2%

- Processing 6.6 7.7 73 65

- Supply 4.0 4.9 69 69

- Distribution 4.7 5.6 84 84

c) Domestic raw materials 21.5 25.6 416 390

Proportion of national total 5.4% 5.1% 6.2% 5.8%

- Primary production 7.6 8.0 184 169

- Processing 3.2 4.4 50 42

- Supply 8.1 9.9 137 130

- Distribution 2.6 3.2 45 50

Agri-complex, proportion of national total 40.5 47.9 717 672

(a+b+c)

Proportion of national total 10.2% 9.6% 10.8% 9.9%

Source: Agricultural input-output table, adapted by LEI.

37
1.5 Dutch Household
agricultural sector (2008)
consumption
The Netherlands has 7.3 million house-
holds. One-third of these are single-person
households, but on average, a household in
the Netherlands contains 2.22 persons.
Each household spends an average of 14% of
its collective income on food, beverages,
and tobacco. In 2007, the Netherlands spent
a total of 36.5 billion EUR on food,
beverages, and tobacco. The largest
expenditures were for meat and fish (5.7
billion EUR), followed by tobacco (3.7
billion), beverages (3.5 billion), dairy (3.4
billion), fruits, vegetables, and potatoes (2.5
billion).
38
Some facts about the Netherlands and the
The Netherlands comprises 0.008% of the
worlds surface area
The countrys surface area totals 4,152,795
hectares, 25% of which is below sea level,
and 2,303,074 hectares is agricultural land
The country has 16.4 million inhabitants and
a labour force of 7.7 million
Life expectancy at birth: 78.0 years for men,
82.3 years for women
Gross Domestic Product: 594 billion EUR
Per capita income: 30,133 EUR
Inflation: 2.5%
Unemployment: 3.9%
Less than 3.5% of the labour force works in
agriculture, horticulture, or fisheries
The Netherlands is one of the founders of the
EU and one of the driving forces behind
European policy for food quality
The Netherlands is one of the three largest
exporters of agricultural products
The Netherlands is a centre for international
trade in ornamental plants
The worlds first horticultural auction
opened in the Netherlands in 1887
The Netherlands is the largest supplier of
potatoes and potato products to the
European market
Average milk production for a Holstein
Friesian cow is 8,750 kg at 4.26% fat and
3.44% protein
Dutch livestock totals (commercial farms):
3,890,000 head of cattle, including
1,466,000 dairy cows
144,078 horses and ponies
1,213,000 sheep
355,000 goats
12,026,000 pigs
96,700,000 chickens, including 44,358,000
broilers and 44,241,000 laying hens
1,044,000 turkeys for meat production
39
2 Agricultural trade

40
2.1 Development
The Dutch economy is internationally-oriented and the agricultural sector is no different.
The Netherlands exported agricultural products worth 65 billion EUR in 2008, which
account for 17.5% of the total Dutch exports that year. Agricultural exports go largely to
other EU Member States. Agricultural imports to the Netherlands are also sizable: 41 billion
EUR in 2008, for nearly one-eighth of total imports.

Only the U.S. exported more in 2008 than the Netherlands. The U.S. show exports of 79
billion EUR in 2008, with the Netherlands at 54.7 billion EUR. Germany is third, at 50 billion
EUR in agricultural exports.

Global exports of agricultural Global imports of agricultural

products (in billions of EUR) products (in billions of EUR)

2000 2007 2000 2007

Total 376 769 Total 398.9 773.2

United States 49.3 78.7 United States 49.8 81.7

The Netherlands 24.8 54.7 Germany 29.3 59.8

Germany 19.9 50.0 Japan 45.8 51.4

France 27.7 49.6 United Kingdom 23.4 48.0

Brazil 10.4 35.2 France 21.2 41.5

Canada 20.9 31.3 China 11.2 39.3

Belgium 14.0 29.8 Italy 20.6 38.5

China 12.4 28.9 The Netherlands 14.9 33.2

Spain 12.3 27.4 Spain 12.3 29.0

Italy 12.2 25.8 Belgium 13.5 28.9

Source: ITC/WTO Source: ITC/WTO

41
EU exports of agricultural products EU The Netherlands
(incl. intra-community trade), 2008 (in billions (in billions (share of EU
of EUR) of EUR) totals, in %)

Total, agricultural products including: 382.5 64.5 16.9

Meat and meat preparations 34.7 6.9 19.9

Eggs and dairy products 33.4 6.1 18.3

Fruits and vegetables 36.2 10.0 27.6

Ornamentals and other plants 10.9 7.8 71.6

Tobacco and tobacco products 14.8 3.0 20.3

Other products 252.5 30.7 12.2

Source: Eurostat

EU The Netherlands
EU imports of agricultural products
(incl. intra-community trade), 2008 (in billions (in billions (share of EU
of EUR) of EUR) totals, in %)

Total, agricultural products including: 399.2 40.9 10.2

Meat and meat preparations 31.0 3.4 11.0

Eggs and dairy products 27.2 2.7 9.9

Grain 17.2 2.4 14.0

Fish and fish products 23.7 1.7 7.2

Fruits and vegetables 48.7 5.5 11.3

Cocoa and cocoa preparations 13.5 2.0 14.9

Other products 237.9 23.2 9.8

Source: Eurostat

2.2 Composition
Dutch agricultural trade is diverse. In 2008, nearly 8 billion EUR in orna-
mentals and other plants were exported, nearly 7 billion in meat and meat
products, and more than 6 billion in eggs and dairy products. Of the
considerable amount imported, meat, dairy, fruits and vegetables, grain,
and cocoa and cocoa preparations represented the largest shares.

42
43
 2.3 Trading partners
More than 80% of Dutch exports go to the EU. True to tradition, Germany
remained the most important trading partner for the Netherlands in 2008,
also for agricultural products. More than 16 billion EUR in agricultural
products were exported to Germany -- more than 25% of the total
agricultural exports of the Netherlands.

Dutch exports of agricultural products (by destination country), 2008

World 100.0 64.479

Germany 25.5 16.444
United Kingdom 11.0 7.125
Belgium 10.7 6.895
France 9.9 6.413
Italy 5.8 3.769
Spain 3.3 2.159
Poland 2.0 1.316
Sweden 2.0 1.295
Denmark 1.9 1.238
Greece 1.4 0.912
Austria 1.3 0.860
Ireland 1.2 0.767
Other EU countries 5.4 3.439
Total EU countries 81.4 52.631
25.5 16.444
United States 2.7 1.720
Russia 2.3 1.469
Switserland 1.1 0.699
Japan 0.8 0.512
Norway 0.7 0.462
Saudi Arabia 0.5 0.339
China 0.5 0.331
Other non-EU countries 10.0 6.316
Total, other non-EU countries 18.6 11.848

Share (in %) Source: Statistics Netherlands (CBS)

Value (in billions of EUR)
44 25.5
Partner country
25.5
The Netherlands, in turn, had a share of nearly 25% in Germanys imported
agricultural products. And for Germany, the Netherlands is the most impor-
tant country in terms of Germanys own agricultural exports; in 2008, for
example, Germany exported more than 7.5 billion EUR in agricultural
products to the Netherlands.

After Germany, the Netherlands most important trading partners are

Belgium, France and the UK. And in France and Italy, the Netherlands had a
considerable share of the agricultural imports, at 10% and 8%, respectively.

Dutch imports of agricultural products (by country of origin), 2008

100.0 40.903 World

20.0 8.192 Germany
13.2 5.406 Belgium
9.3 3.786 France
3.9 1.577 United Kingdom
3.3 1.356 Spain
2.2 0.894 Italy
1.8 0.720 Poland
1.4 0.577 Denmark
1.1 0.448 Ireland
4.6 1.887 Other EU countries
60.8 24.842 Total EU countries

6.7 2.744 Brazil

3.5 1.429 Argentina
3.1 1.263 United States
2.6 1.065 Malaysia
2.0 0.821 Indonesia
1.7 0.695 China
1.5 0.612 South Africa
0.8 0.318 Thailand
0.8 0.308 India
0.6 0.253 Turkey
15.9 6.552 Other non-EU countries
39.2 16.060 Total non-EU countries

Source: Statistics Netherlands (CBS) Share (in %)

Value (in billions of EUR)
45 Partner country
25.5
25.5
Dutch exports to EU countries (by product group), 2008

Product group Value

(in billions of EUR)

Ornamentals and other plants 6.539

Meat 6.309
Dairy 3.777
Vegetables 3.689
Livestock feed 3.480
Preparations made from fruits, vegetables, or potatoes 3.316
Fruits, nuts, and spices 2.919
Tobacco 2.825
Processed grain, starch 2.327
Fish 1.844
Other 15.606
Total 52.631
Source: CBS

Dutch exports to non-EU countries, 2008

Product group Value

(in billions of EUR)

Beverages 1.538
Dairy 1.467
Ornamentals and other plants 1.340
Coffee, tea, cocoa 0.911
Processed grain, starch 0.840
Meat 0.622
Vegetables 0.564
Livestock feed 0.458
Fish 0.457
Fruits, nuts and spices 0.399
Oils, fats, and margarine 0.383
Seeds 0.356
Preparations made from fruits, vegetables, or potatoes 0.314
Other 2.199
Total 11.848
Source: CBS
Dutch imports from EU countries, 2008

Product group Value

(in billions of EUR)

Meat 2.677
Dairy 2.459
Grain, seeds, legumes, potatoes 2.295
Beverages 1.842
Processed grain, starch 1.620
Oils, fats, and margarine 1.293
Livestock feed 1.256
Preparations made from fruits, vegetables, or potatoes 1.248
Fruits, nuts, and spices 1.173
Wood, cork 1.162
Vegetables 0.898
Fish 0.825
Oilseeds 0.818
Other 5.276
Total 24.842

Source: CBS

Dutch imports from non-EU countries, 2008

Product group Value

(in billions of EUR)

Fruits, nuts, and spices 2.641

Oils, fats, and margarine 2.202
Oilseeds 1.678
Livestock feed 1.546
Coffee, tea, cocoa 1.479
Fish 0.911
Ornamentals and other plants 0.836
Meat 0.799
Preparations made from fruits, vegetables, or potatoes 0.748
Wood, cork 0.597
Other 2.623
Total, non-EU countries 16.060

Source: CBS
3 Developments in
the agricultural sector

48
 3.1 Agricultural and horticultural operations
3.1.1 Number of businesses
A slight expansion and intensification of production rising productivity,
restructing of farms this is the trend in Dutch agriculture and horticulture
over the last few decades. Between 1990 and 2008, the number of b usinesses
shrank by 40%, the result of a process that has been present for years, but
which accelerated after 1995. The remaining farms take over the production
and increase in scale. This proces is largely brought on by the high cost of
labour.

This trend is most evident in greenhouse horticulture, with 40% fewer

businesses since the year 2000. Related phenomena include stiff competition
at horticultural markets, the steep increases in energy costs, and the
restructuring of a number of horticultural areas. At the same time, long-term
production trends are rising.

Livestock, 2008

HORSES AND PONIES

16.100
144,000
9

GOATS
4.2.000
355,000
85

SHEEP
13.6000
1,213,000
89

CATTLE
34.2000
3,890,000
114

PIGS
8.2.000
12,026,000
1,458

CHICKENS number of businesses

49 2.5000 number of animals
96,700,000 avg. number of animals per business
38,742
Source: CBS and LEI
Greenhouse cultivation, Number of Total surface Avg. surface
2008 businesses area (in area per
hectares) business
(in hectares)

Vegetables 2,022 4,647 2.3

Cut flowers and plants 4,004 5,047 1.3

Mushrooms 214 77.1553 0.3605

Source: CBS and LEI

Open field horticulture, Number of Total surface Avg. surface

businesses area area per
2008
(in hectares) business
(in hectares)

Vegetables 3,051 24,857 8.1

Fruits 2,325 17,771 7.6

Flower bulbs 2,497 24,330 9.7

Trees 1,451 2,581 1.8

Source: CBS and LEI

Number of Total surface Avg. surface

Arable farming,
businesses area area per
2008 (in hectares) business
(in hectares)

Grain 17,128 243,490 14.2

Legumes 505 2,450 4.9

Cash crops 1,590 10,090 6.3

Grass seed 1,911 15,650 8.2

Potatoes for consumption 8,019 105,800 13.2

Starch potatoes 1,741 46,030 26.4

Sugar beets 11,694 82,027 7.0

Onion seedlings 2,861 20,300 7.1

Fodder maize 27,818 241,730 8.7

Source: CBS and LEI

50
In 2008, 75,000 businesses were active in the sector: 25% with dairy cattle;
25% with other grazers, such as beef cattle, sheep, and goats; 11,000
specialised farming operations, producing mainly grain, sugar beets, and
potatoes; more than 13,000 produce horticultural crops, either in open
fields or in g reenhouses; another 6,500 are intensive livestock operations
raising pigs or poultry; and a group just as large combines these different
categories of production.

3.1.2 Farmland
The Netherlands has a total land surface of 4.15 million hectares. Just over
half is farmland, representing 1% of all farmland in the EU. Of the farmland
in the Netherlands, 56% is used for arable and horticultural crops, 42% is
permanent grassland, and 2% is used for permanent crops.

3.1.3 The environment

A study by the Organisation for Economic Co-operation and Development
(OECD) shows that the pressure exerted by Dutch agriculture and
horticulture on the environment has declined relatively sharply, in
comparison with other OECD countries, and also compares favourably
within the EU. Between 1990 and 2004, levels of excess nitrogen per hectare
decreased by one-third, and phosphorus by one-half. Ammonia emissions
dropped by nearly one-half.

3.1.4 Production value

In 2008, agriculture and horticulture in the Netherlands had a production
value of 24 billion EUR, or 1.6% of the Gross Domestic Product. This is
higher than the EU average of 1.2% of GDP. Of the total production value,
11.4 billion EUR was generated by arable and horticulture crops and 9.7
billion from livestock products. Of the value of arable and horticulture
crops, more than half was from flowers and plants. Of the livestock
products, dairy has the largest share, at 43%. The production value rises with
21% since 2000 in nominal terms (corrected

3.1.5 Productivity
There are fewer, larger businesses in agriculture and horticulture today,
primarily as a result of rising costs of labour combined with the availability
of labour-saving devices. And in the last few decades, crop yields have gone
up sharply. For example, winter wheat yields rose from 5100 kg per hectare
in 1975 to 9000 kg in 2008. Sugar beets increased from 44 to 72 tonnes,
potatoes from 33 to 46 tonnes. The dairy sector shows a similar trend, with
annual production jumping from 4625 kg per cow in 1975 to 7879 kg in
2007.

51
3.1.6 Organic agriculture
In 2008, more than 5000 hectares were being organically farmed by 1400
certified businesses. At 36.2 hectares, the average organic farming business
is 40% larger than the average non-organic business. Over two-thirds of the
total surface area of the land used by organic farms is pasture for grazing
livestock. More than 10% of the surface area is used to cultivate fruits,
vegetables, and potatoes, with another 10% for grain. Smaller areas are used
for fodder and other crops. Nearly 740 hectares lie fallow.

In the Netherlands, organic farming uses 2.6% of the farmland. When EU

countries are ranked according to their total area of organic farmland, the
Netherlands appears somewhere about halfway down the list. Italy leads,
with 1.2 million hectares of organic farmland, 9 % of the countrys total
farmland, followed by Spain, with 1 million or 3.9%, and then Germany,
with 0.9 million, or 5.1%.

Of the organic fruits, vegetables, dairy, beef, poultry, cheese, and eggs
produced in the Netherlands, more than half is exported, primarily to
Germany, the UK, Belgium and France.

3.1.7 Regional products

Although the market for regional products is limited estimates range from
120 to 180 million EUR interest in them is increasing. Since 1992, regional
products can receive a protected designation of origin or a geographical
indication from the European Union. Of the 740 products registered, 1%
come from the Netherlands, including the Westlandse druif, the
Opperdoezer Ronde potato, and the following cheeses: Noord-Hollandse
Gouda, Noord-Hollandse Edammer, Boeren-Leidse met sleutels, Kanterkaas
varieties, and Boerenkaas.

3.2 Fisheries
The Dutch fisheries sector has garnered considerable interest in recent
years. Non-governmental organisations have accused the sector of
overfishing and disturbing the marine ecosystem. The amount of fish each
Member State can catch is determined at the European level on the basis of
recommendations from the International Council for the Exploration of the
Sea (ICES). Although the sector makes only a limited contribution to the
Gross Domestic Product, the Dutch fishing fleet is the most efficient in
Europe, and probably even the world. Dutch fishing operations catch the

52
 2000 2008

Total production value including: 19,923 24,013

ARABLE CROPS 1,767 2,090

Grain 237 289

Potatoes 645 1.011

Sugar beets 303 203

Industrial crops 61 63

Fodder crops 522 523

HORTICULTURE CROPS 7,860 9,342

Vegetables (fresh) 1,952 2,052

Fruits (fresh) 322 639

Plants and flowers 5,105 6,203

Other crops 480 448

LIVESTOCK PRODUCTS 8,581 9,711

Cattle 1,250 1,503

Pigs 2,336 2,563

Horses 36 16

Sheep and goats 120 155

Poultry 685 729

Other animals 14 19

Milk 3,664 4,192

Eggs 402 414

Other animal products 74 121

Agricultural services 1,244 2,577

Other goods and services 95 293

Source: CBS

53
 Main fish quotas (in thousands of kg), 2009

North Sea Western waters

20,237

38.5 57,415
10,466
75.2 34.6
31,069

25.6 28,905
2,762 9.3
13,787
11.6
18.6

Sole
Plaice Mackerel
Cod Horse mackerel Percentage of total
Herring Blue whiting allowable catch

Source: Ministry of Agriculture, Nature and Food Quality (LNV)

greater part of the European quotas for sole and a substantial part of the
total allowable catch for plaice, herring, and horse mackerel.

The EU and the Dutch government support the fisheries in working towards
a more innovative and sustainable sector. The aim is to bring fish
populations up to biologically safe levels and to ensure the continuing
viability of fisheries, aquaculture, and the fish processing industry. Million
of Euros have been earmarked for this purpose, both at the national and
European level.

By the end of 2005, the Dutch fisheries fleet consisted of 441 vessels and
2274 crew. The cutter fleet, which primarily involves family businesses
operating on the North Sea, is the single largest group with its 342 vessels
and 1470 crew. The distant-waters fleet consists of 15 large deepfreeze
trawlers up to 145 meters long. These vessels are operated by a shipping
company to fish for pelagic species such as herring, mackerel, horse
mackerel, and blue whiting in European, African, and South American

54
The Dutch fisheries fleet, 2007

345 1404 270

14 508 134

56 170 66 Cutters
Distant-waters fleet
Mussel fisheries
Other coastal fisheries
27 50 6
Total sea and coastal fisheries
Number of vessels
Number of crew
442 2132 476 Yield (in millions of EUR)

Source: LEI

waters. The European Commission negotiates with African countries, such

as Mauritania, about the catches allowed in their waters. The trawlers
employed 560 crew in 2005.

In addition to the cutter fisheries and the distant-water fisheries, the Dutch
fisheries sector includes mussel and oyster fisheries. This shellfish sector
has around 85 vessels and employs some 250 people.

3.3 Food, drinks, and tobacco industry

3.3.1 Companies, employees, sales volumes
The food, beverage, and tobacco sector is an important Dutch industry.
With its 4500 businesses and 150,000 employees, the sector generated
nearly 57 billion EUR in net turnover in 2006. Mergers and concentrations
have led to a steady decline in the number of businesses in the sector. They
represent the sectors response to the strengthened position of retailers,

55
who have pooled their purchasing power at the national or European level.

Businesses in the food, beverage, and tobacco industry are often subsidia-
ries of multinationals and thus internationally oriented. Nearly half of the
sectors sales are generated abroad, 75% of this amount in other EU Member
States. Foreign investment is also high, totalling 31.6 billion EUR in 2007,
with more than half going to the EU, especially Belgium and the UK.
Likewise, foreign firms invested over 45.5 billion EUR in Dutch food
companies. The U.S. was the biggest investor, with more than half of the
total investments, followed by France, with nearly 14 billion EUR.

3.3.2 Multinationals and investments in the Dutch food, drinks

and tobacco industry
The Netherlands is home to numerous multinationals, some of which
occupy top positions on several continents with their products. The top
eight Dutch food corporations had global sales of nearly 85 billion EUR in
2008.
Unilever and the Swiss corporation Nestl are the worlds most important
manufacturers of food. In 2008, Unilever had global sales of over 40 billion
EUR, with more than half from food and beverages. The multinational had
174,000 employees in a hundred countries, including 30,000 in Western
Europe, 42,000 in North and South America, and over 100,000 in Asia and
Africa combined.
Heineken, with a consolidated beer volume for 2008 of 126 million
hectolitres, and 125 breweries in more than 70 countries, is the biggest
brewer in Europe and one of the biggest in the world. Heineken holds the
top position in many of the countries in which it operates. In the
Netherlands, Heineken has a market share of 50%.

The VION Food Group has production and sales operations world wide.
Main divisions are Food and Ingredients. The Food Division comprises
fresh pork, beef, lamb, and chicken, along with convenience food derived
from these meats. The Ingredients Division comprises animal-based
ingredients. VION has a market share in Europe of 5% for beef products and
9% for pork products.

Royal FrieslandCampina, with its 21,000 employees and 2008 sales of 9.5
billion EUR, is the third largest dairy company in Europe, behind the Swiss
firm Nestl and the French firm Danone. FrieslandCampina, a dairy farmer
cooperative, has some hundred production and sales operations in 25
countries and processed nearly 11.5 million kg of milk in 2008.

56
 Nutrecos sales make it one of the top three animal feed producers in the
world, with a share of 1.3% in a fragmented market. The company has over
9000 employees in 30 countries and sells its products in 80.

CSM is active in bakery ingredients, bakery products, lactic acid, and lactic
acid derivatives. CSM leads the world market for the latter products. For
bakery ingredients and products, CSM occupies the top market position in
Europe and the second position in the U.S.

The increasing integration of the Dutch food, drinks and tobacco industry
into international markets raises the question of how strong the bond of
these markets is with the Netherlands. The breakdown into domestic and
third country suppliers suggests that production facilities in third countries
could easily be transferred to other regions if this would yield competitive
advantage. However, it is not that simple. Businesses using domestic raw
materials may have reason to expand or move their production processes,
for example to eastern Europe. On the other hand, the port facilities, areas
of consumption and other historic support activities developed in north-
western Europe may bind the industry to the Netherlands.
The analysis of foreign direct investment in the chart below shows the
central role played by the Netherlands.

Analysis of Added value (factor costs, Employment

foreign direct investment thousand million (1,000 man-years)

Food, drinks and tobacco industry (a) 2001 2007 2001 2007

Food, drinks and tobacco industry (a) 9.8 12.1 123 107

based on domestic raw materials 3.2 4.4 50 42

based on raw materials from abroad 6.6 7.7 73 65

Supply and primary production (b) 19.7 22.8 390 368

Primary production 7.6 8.0 184 169

Distribution(c) 7.3 8.8 129 134

Horticulturalists, Agricultural services, forestry (d) 3.7 4.0 75 64

Agri-complex (a+b+c+d) 40.5 47.9 717 672

Share of national total 10.2% 9.6% 10.8% 9.9%

Source: Nederlandse Bank. These figures may vary from data published earlier due to revisions by national accounts and methodological
changes. Bron: Agricultural Economics Research Institute

57
Foreign investment in the Dutch food, drinks and tobacco industry.
Direct investment from foreign companies in the Dutch food, drinks and
tobacco industry amounted to more than EUR 33.6 thousand million in
2006 and EUR 45.5 thousand million in 2007, representing a growth of 34%
between 2006 and 2007. Most of this investment was made to get a share in
the running of Dutch food, drinks and tobacco businesses and came mainly
from the US (LEB 2008). US investment in 2006 was EU 22.1 thousand
million compared to EU 23.3 thousand million in 2005. In 2007 half of
foreign investment, amounting to EUR 22.8 thousand million, came from
US businesses.

In 2006, the UK with almost EUR 3.2 thousand million was the most
important investor within the EU, followed by France with EUR 1.6 thousand
million (LEB 2008). In 2007 France was the largest investor with EUR 13.8
million. This investment was made almost entirely by the dairy conglome-
rate Groupe Danone, which in 2007 took over Koninklijke Numico for more

The industry in The Netherlands, 2000-2006

FOOD, BEVERAGES, AND TOBACCO 2000 2002 2006

Number of businesses 5070 169,000 50.018

Number of employees 4825 163,000 52.796

Net turmover (in billions of EUR) 4520 152,300 56.792

TOTAL SECTOR 2000 2002 2006

Number of businesses 45,290 966,600 229.188

Number of employees 46,305 925,600 223.425

Net turmover (in billions of EUR) 46,605 846,800 280.922

Source: CBS

58
than EUR 12 thousand million (LEB 2009).

Investment abroad by the Dutch food, drinks and tobacco industry

Dutch business investment in the food, drinks and tobacco industry abroad
amounted to EUR 31.6 thousand million in 2007, against EUR 17 thousand
million in 1997. More than half of this investment, 54%, was in the EU.
Belgium and the UK were the most important, followed by Germany, France,
Italy and Spain. Outside the EU, Dutch businesses invested mainly in the US,
Central and South America and Switzerland. In 2006 Dutch businesses
invested more than EUR 6.7 thousand million in the US. It is mostly the large
Dutch multinationals that have developed large interests and generate a large
part of their turnover there (LEB 2008; 2009).

According to a 2006 OECD study into trends in foreign direct investment in

OECD countries, the Netherlands is in fourth place behind the US, the UK and
France, followed by Canada, Belgium and Germany. For direct investment in

Top Dutch food corporations, 2008

MULTINATIONALS Global sales Dutch sales Number of Product group

(in billions of EUR) (in millions of EUR) employees

Unilever 40.5 (not available) 174,000 Food and

beverage
products

Heineken 14.3 (not available) 56,200 Beverages

VION Food Group 9.6 (not available) 35,000 Meat,

ingredients, etc.

FrieslandCampina 9.5 2798 20,600 Dairy products

Nutreco 4.9 833 9200 Animal feed, fish

food, meat

CSM 2.6 154 8400 Bakery

ingredients and
lactic acid

Cosun 1.7 (not available) 4300 Food and

ingredients

Wessanen 1.7 169 5800 Natural foods

59 and snacks

Source: Company web sites and annual reports

 foreign countries the Netherlands is in the top five alongside the US, Japan,
the UK and France.

3.3.3 Retailers and the hospitality industry

In 2007, Dutch consumers spent 36.5 billion EUR or 14% of their collective
income on food, beverages, and tobacco. Four-fifths of the money spent on
food, and two-thirds of that spent on alcohol and tobacco went to super-
markets the primary outlet for daily purchases. Most Dutch supermarkets
belong to a relatively small number of chains. Albert Heijn is the largest of
these, with 750 stores, 2008 sales of 9 billion EUR, and a market share of
nearly one-third. Albert Heijn is a subsidiary of the Ahold Group, the third
largest supermarket chain in the world. Wholesalers Schuitema, owner of
the C1000 supermarkets, has a market share of almost 13%, the German
discount food retailer Aldi about 9%, and Super de Boer 7%.
Food Away From Home (FAFH) expenditures amounted to 14 billion EUR for
Dutch consumers in 2007. The hospitality industry, which includes hotels,
restaurants, snack bars, fast food establishments, cafs, cafeterias and

Retail trade in food, beverages, and tobacco in the Netherlands, 2007

Number of stores Number of employees Sales (in millions of EUR)

Supermarkets 5740 221,500 26,700

Specialty shops:

- Greengrocers 1440 5200 465

- Butchers 2420 14,100 1200

- Poultry shops 245 900 82

- Fishmongers 890 2800 211

- Chocolate and confectionery shops 580 1200 66

Liquor stores 2221 4300 920

Tobacconists 1700 2700 .

Cheese shops 520 1500 162

Bakeries 4190 41,000 .

Natural food stores 370 2000 168

Source: CBS
Source: Central Industry Board for Retail Trades (www.hbd.nl)

60
catering, counts some 42,000 businesses and employs 340,000 people.
One-fourth of the businesses are restaurants, one-fourth cafs. The recent
economic crisis has put pressure on the food budgets of individuals and
companies alike.

3.3.4 Organic
In 2008, Dutch consumers spent 583 million EUR on organic products, a 2%
share of all food, beverage, and tobacco products. There are many sales
outlets, and most registered a growth in sales in 2008. Supermarkets
generated more than 11% growth, with total sales of 257 million EUR, largely
by expanding their selection of products. Specialty shop sales grew by
nearly 9%, to 235 million EUR. Contract catering sales doubled in 2008, to
nearly 46.1 million EUR. Many new contracts require the selection of
organic items be expanded.

61
4 Research
and education

62
The agricultural sector is vital to the Dutch economy and Dutch culture. Over
the years, a knowledge infrastructure has been put in place that continually
evolves and develops, thus ensuring the sector continues to thrive. The center
of this knowledge infrastructure is Wageningen University and Research Center
(Wageningen UR), where the greater part of fundamental and applied research
takes place. The Top Institute Food and Nutrition (TIFN) a public-private
partnership involving government, research institutes, and companies such as
CSM, DSM, VION, Unilever and FrieslandCampina is also located in
Wageningen.

A number of agri-food businesses have concentrated their research activities

around Wageningen, but relevant research and education also takes place in
other locations: the University of Maastricht (NUTRIM), the University of
Groningen, the University of Leiden, the Erasmus University in Rotterdam and
the Technical Universities of Eindhoven and Delft. Other research institutes in
the areas of food and agriculture are TNO, National Institute of Public Health
and Environmental Protection (RIVM), and NIZO Food Research.

In the coming years, a development towards more innovative food products is

expected, such as functional foods, which are foods with added
health-enhancing value. The Netherlands has a good knowledge infrastructure
in the area of functional foods and nutraceuticals.

Wageningen University and the Van Hall Larenstein College of Higher

Education have a strong international element, with students from over 100
countries. Wageningen International plays a key role in the international
activities of Wageningen UR, functioning as a worldwide front office that
responds to questions about education and research, and offers courses and
tailored research.

63
SUPERVISORY BOARD
BOARD OF GOVENORS
Agrotechnology & Animal Sciences Group Environmental
Food Science Group Sciences Group

WAGENINGEN Agrotechnology & Animal Sciences Environmental Sciences

UNIVERSITY Food Sciences

SPECIALIZED Restaurant Infectious animal Alterra

RESEARCH INSTITUTES of the future diseases

Food Livestock
Technology centre management

Quality in chains Products

Biobased Products

64
Plant Sciences Group Social Sciences Group Hogeschool Wageningen International
Van Hall Larenstein

Plant Sciences Social Sciences Van Hall Larenstein Wageningen IMARES

Wageningen Business
Plant Research Agricultural Economics
School
International Research Institute (LEI)

Wageningen Business
Practical Research
Generator
International

Statutory Research

Central Institute for

Animal Disease
Control (CIDC,
Lelystad)
Practical Research
Plant and Environment Institute of Food Safety
(RIKILT)

4 Statutory research
programmes

65
5 Public policy

66
The Dutch Minister of Agriculture, Nature and Food Quality has confidence in
the future of the agri-sector and in entrepreneurship as its determining factor.
The agricultural sector is a key contributor to the economy and to the liveability
of the countryside. The ministrys agriculture policy aims for sustainable
development, where a balance is continually sought between the three
dimensions of socially responsible enterprise: People, Planet, and Profit.

The Ministry is faced with major changes in society that have an impact on its
policy areas. The use of green spaces and their function for the populations
well-being, for example, remains an important issue. Food safety and the
environment are high on the agenda. Global developments such as the food
crisis, the tension between producing food or fuel, the protection of biodiver-
sity, and the reduction of our ecological footprint, all have an important place
in policy. These developments call for adaptations to be made in several sectors
and production chains, such as intensive livestock production, greenhouse
horticulture, and dairy farming. The government encourages the adaptations
required, and asks the sectors themselves to take their share of the responsibi-
lity. At the same time, the Ministry emphasises the role of the agricultural
sector in resolving issues of ecology, climate, and animal welfare.

Key elements in the governments agriculture policy:

Sound, sustainable agriculture: meets the demands and requirements of

society, strives to be varied and multifunctional, contributes to spatial quality,
is internationally competitive;

Food quality: produce sound, wholesome and safe food, which meets a wide
range of consumer demands and is the result of well-functioning business
chains, stimulate innovation in food quality and transparency in international
food chains;

Knowledge and innovation: develop a knowledge infrastructure that can

address challenges, for instance through the government-initiated Innovation
Platform or by further funding innovation and expertise;

International context: facilitate international trade, limit informal transaction

costs, and promote sustainable development. The Netherlands advocates
liberalising world trade and reforming EU agriculture policy;

Biobased economy: develop opportunities for using green ingredients in

chemical, medical, and other non-food applications;

67
Business climate: reduce regulations, resolve problems, and simplify policy;
harmonise standards and requirements, improve logistic processes for
import and export, and take the one-stop shop approach.

68
69
 Appendices

70
71
Appendix 1: Web sites
Government
Statistics Netherlands (CBS) www.cbs.nl
De Nederlandsche Bank (DNB) www.dnb.nl
European Union www.europa.eu.int
Ministry of Foreign Affairs www.minbuza.nl
Ministry of Agriculture, Nature and Food Quality www.minlnv.nl

Research
AFSG Wageningen UR www.agrotechnologyandfood.wur.nl/nl
Erasmus University Rotterdam www.eur.nl
Netherlands Geonomics Initiative www.genomics.nl
Agricultural Economics Research Institute (LEI) www.lei.nl
Nutrition and Toxicology Research Institute
Maastricht (NUTRIM) www.nutrim.unimaas.nl
Kluyver Centre for Genomics of Industrial Fermentation www.kluyvercentre.nl
NIZO Food Research www.nizo.com
University of Groningen www.rug.nl
National Institute of Public Health and Environmental
Protection (RIVM) www.rivm.nl
Institute of Food Safety (RIKILT) www.rikilt.wageningen-ur.nl
Technical University Delft www.tudelft.nl
Technical University Eindhoven http://w3.tue.nl/nl
TNO www.tno.nl
Top Institute Food and Nutrition www.tifn.nl
Leiden University www.leidenuniv.nl
Food and Consumer Product Safety Authority (VWA) www.vwa.nl
Wageningen-UR www.wageningen-ur.nl
www.courage2025.nl
www.innovatienetwerk.org

Commodity Boards
Central Commodity Board for Arable Products (HPA) www.hpa.nl
Product Board for Beverages www.productschapdranken.nl
Product Boards for Livestock, Meat and Eggs http://bedrijfsnet.pve.agro.nl
Product Board for Margarine, Fats and Oils www.mvo.nl
Product Board for Horticulture www.tuinbouw.nl
Product Board for Fish www.pvis.nl
Dutch Dairy Commodity Board www.prodzuivel.nl

Appendix 2
72
Promotion
Agency for International Business and
Cooperation (NL EVD International) www.hollandtrade.com
Biologica www.biologica.nl
Centre for the Promotion of Imports from
developing countries (CBI) www.cbi.nl
International Flower Bulb Centre www.bloembollencentrum.nl
Netherlands Foreign Investment Agency www.nfia.nl/
Plantum www.plantum.nl/english/indexengl.htm
Port of Rotterdam www.portofrotterdam.com
Port of Amsterdam www.portofamsterdam.nl

Appendix 2

73
 The wholesale agricultural products sector, 2006

Number of Number of Net sales Net intl sales

businesses employees (in billions of (in billions of
EUR) EUR)

Wholesale in agricultural products 5135 36,900 20.559 9.646

and live animals including:

- Grain, seeds, livestock feed . 10,300 8.968 3.423

- Plants and flowers 2405 23,400 8.278 5.266

- Animals, skins, leather, unprocessed 1250 3,000 3.313 0.957

tobacco

Wholesale in food, beverages, 6645 81,600 55.373 15.958

and tobacco including:

- Fruits and vegetables 880 15,500 11.393 5.787

- Other food, beverage, and tobacco . 43,700 29.595 9.304

- Food, beverage, and tobacco, . 22,300 14.385 0,868

general assortment

Source: Company web sites and annual reports

74
75
Credits

Published by
The Ministry of Agriculture, Nature and Food Quality
Department of Agrochains and Fisheries
Prins Clauslaan 8
P.O. Box 20401
2500 EK The Hague
The Netherlands

Editing
martijndegroot.communicatie
The Ministry of Agriculture, Nature and Food Quality
Department of Agriculture, Fisheries and Agribusiness

Text
Agricultural Economics Research Institute (LEI)
martijndegroot.communicatie

Design
Zeevonk grafisch ontwerp, Den Haag

Photography
Frits H. Emmerik (p8 and 9)
Ten Kate Holding bv (p8)
NPSP (p24 and p25)
Courage (p32 and 33)

Production
DB Huisstijlmedia

Printer
Thieme Media Services

Further Information
Infotiek, Phone, +31 70 378 4062
Internet: www.minlnv.nl/international

June 2010

76