Impression of agricultural research in the Netherlands
The Agricultural University of Wageningen has one professorial chair for organic and sustainable farming. The basic research contains technical research, but also research on environment and nature.
The Agricultural Research Department (DLO) is a central organization for fundamental strategic and applied research. Thirteen research institutes belong to this department which employs about 3000 people. LEI-DLO is one of them. The research includes a wide range of disciplines with expertise in several fields.
All research stations and research farms have an applied research programme and every station nowadays has technical aspects of organic framing in its research programme. There are special stations for animal, horticulture and arable farming. One research farm collects information by monitoring its organic arable farm management.
In the Netherlands an intensive network exists of advisers who translate the results of fundamental and applied research to different strategies of farm management, technically as well as economically. Until last year there was a team of eight advisers specialized in organic farming and conversion. Together with the farmer they made the plans for conversion and calculated the financial consequences of the decision. Starting this year, the eight advisers are integrated in the regular system of advisory teams to also transmit their knowledge to the advisers for conventional agriculture.
Consultants carry out research, but more important they advise and support the implementation of organic agriculture. Together with the agriculture advisers they form the frame-work for the first steps of conversion.
LEI-DLO is the main organization for socio-economics research in agriculture, horticulture, fisheries, forestry, rural areas and agri-business. Over 300 people are working at the institute. One hundred and twenty of them are senior and junior researchers. The fields of expertise are:
Accounting network: in the accounting network financial-economic and technical data are collected from holdings in arable farming, cattle farming, horticulture, fisheries and forestry. This accounting network is part of the Farm Accountancy Data Network of the European Union.
Business development: Just some of the research topics are farm-related environment protection, integrated production systems, intensive fruit production, management in sustainable dairy farming and perspectives for biological agriculture and horticulture.
Rural area and labour force: spatial policy in the Netherlands becomes more and more important. LEI-DLO does innovative research on valuation of nature and landscape. This type of research together with knowledge of agricultural labour force gives more insight into rural development.
Environment and energy: due to the intensive character of Dutch agriculture, much attention is paid to environmental problems. LEI-DLO has adapted the LCA-methodology. LEI-DLO also makes applications for agriculture and agri-business, of course for various production systems.
Market and technologies in agri-business: international market focus, efficient chain organization, product and process innovation and consumer oriented quality, shape the future of the agricultural sector and the food industry. Research on international competition, consumer behaviour and developing models for logistics and distribution is carried out by this institute.
International and national policy: international, national and regional agriculture policies determine the possibility of the agricultural sector and its agri-business, now and in the future. LEI-DLO studies policy effects with special models.
Organic research at LEI-DLO in agriculture and agri-business
Accounting network for forty organic farms
In the last 6-10 years, fifteen dairy farms, nine arable farms and twelve horticultural farms have been monitored in the accounting network. The way these farms are monitored does not differ from the way conventional farms are monitored. In the coming years, the number of farms will be increased to forty organic farms. These forty farms are representative of regions, farm sizes, farm characteristics, and so on. Last year, the first analyses were published. The subjects were farm income and farm labour compared to conventional farming.
Trade and consumption of organic products and food
In the past ten years LEI-DLO has done a lot of research into sector structure, trade and consumption of organic production and products. In the period 1987-1993, each actor in the chain from production to consumption has been the subject of research.
In 1996, research was carried out into the competitiveness of the Dutch organic agri-business compared to the organic agri-business in Europe. The aim of the research was to give the Dutch Government and the sector information on formulated policy to strengthen the Dutch position in the home market and the export market. In the Autumn of 1996, a second activity plan was presented by the Dutch Government based on the results of this study.
Policy effects and evaluation on a national and regional level
At present, there are two studies on policy effects. The first one calculates the effect on cost and income of the farmer if value added taxes and labour taxes are based on more environment-friendly criteria. The second study is on the effect on the environment, labour and water household if 10% of the agricultural farming land becomes organic.
Further research topics, recommendations and questions to E. Wynen’s report
1. Socio-economic aspects of organic farming
Database of farm economics for farm management
Comparison of farm economics between countries with intensive organic farming.
Comparison of farm economics between conventional and organic farming.
Monitoring of organic farms to measure their performance and to estimate their strategic potential farm management.
Entrepreneurship and rate of conversion
Insight in management style, attitude and motivation of the farmer behind the decision of conversion.
2. Market-economics
Share of farm earnings in consumer prices
Consumer prices for organic products in various countries differ a lot from the rewards farmers get for their organic farm management. When the organic production increases, will the efforts of the farmer still be paid or will the prices be similar to conventional farming?
Demand and supply
The two farm strategies' cost efficiency or added value depends on the skill of the farmer, scale of production and region. If Europe is one region with different opportunities for production, the cost-efficiency strategy can be a serious motivation for conversion. What effect does scale have on cost-efficiency strategy and on the development of organic farming (cases in animal husbandry and fruit)?
Another topic is the scenario study for different directions of development of the organic production. How explosive will the growth of the supply become?
3. Rural areas
Food production/processing connected to regional production
A larger number of consumers and also traders have become more interested in tracing and tracking of the food. Food production and processing and regional production become more relevant. How does organic farming fit into this development?
Are there any opportunities to strengthen the position of organic production?
Nature management and organic farming
It is clear that nature management and organic farming could have similar goals.
What is the effect for the farmer when these two subjects are integrated into the national and European policy?
Some additional remarks to the following sections of the report:
5.4 Comparisons
In the Netherlands with the intensive agriculture systems, it is very important to reveal the economic possibility of organic farming. The organic organizations promote organic farming as a farm system equal to conventional systems. Additional income from preserving nature, house-selling or tourist facilities must not be necessary to get a family income.
5.5 Conversion
The skill of the organic farmer is probably ‘higher’ than that of the conventional one, anyway organic farming is more complex. It requires a great amount of time to market the organic products. Research on motivation in performance of the organic farm manager is initiated in the Netherlands.
5.6 Consumers
In the Netherlands the environment-issue is becoming less important. Taste and health as a motivation for purchase are more evident. These will be the items of research from now to 2005. Product innovation based on consumer preferences will be the main item in organic marketing in the next years.
5.9 Data and standards for data
From 1999, all EU-countries must collect data on organic farming (2091/92). At that point, more statistic material on the organic sector will be available. In the Netherlands, official statistical data will be collected from 1998.
