European farming is facing a major shift. Society and politics demand an ecological transition, which feels like an almost impossible mission for farmers who are already economically struggling. However, if we combine this ecological transition with an economic transition, we can discover new ways of truly sustainable farming. With an integrated approach supported by data and digitalization, we believe this is possible.
On many different levels, farmers are confronted with increasing demands and regulations. As director of plant-based solutions at Agrifirm, one of my main focus areas is supporting our arable farmers in the challenges they face and showing them new opportunities. Royal Agrifirm Group is a cooperative of approximately 10,000 Dutch farmers. We believe in responsible food chains for future generations, yet we believe that this is only possible if we manage to improve not only the ecological but also the economic impact of arable farming.
Lowering Environmental Impact, Maintaining Livelihood
The chemical solutions that have been the key to productivity and efficiency in the past decades are rapidly disappearing. The inconvenient truth is that the (financial) benefits have been passed on to the consumer, not the farmer. The Dutch arable industry is an industry with very low added value: 45 percent of our arable farmers generate a household income close to the defined minimum. That explains why new demands and regulations are not easily embraced. The technologies that enabled productivity rise are disappearing, but there are limited financial means to transition to new ways of working and meet the new demands. We believe that we can only successfully transition our food production system if we strike a balance between lowering the environmental impact and economic sustainability.
New Technologies, New Approaches
As a cooperative, we take responsibility, and we are capable of finding new ways toward sustainable arable farming. To establish this, we focus on two major themes listed below. I will elaborate on both further.
If a shift to more extensive crops has environmental and regulatory advantages, we need to make it economically viable to grow these crops.
1. A new approach to farming to maintain yields and profitability. This 'Total Crop Approach,' as we call it, integrates technologies such as green crop protection, natural pest control, mechanical weeding or genetic resistance, supported by digital technologies and the use of data. Ultimately, this system leads towards a regenerative way of farming.
2. A shift in the value chain to ensure fair economic returns for the farmer. This will become even more important as laws and regulations will likely force Dutch farmers to grow more extensive crops. For many crops, such as cereals or protein crops, margins are made down the value chain, while farm margins are very small. More cooperation, or even integration, within the food chain, can be a key to better value distribution.
Total Crop Approach
The complexity of arable farming is increasing rapidly. In the absence of traditional (chemical) technologies, we can no longer reactively address pests or diseases, but we need to consider the crop-growing cycle as a system. In this system, we need to be able to anticipate as well as cure. To be able to do that, digitalization is vital. Outdoor farming is still run mainly on human experience and expertise, as opposed to the data-driven approach we see in controlled indoor environments. With the increasing complexity, data is vital for real progress. Digital technology is rapidly evolving, and data-driven decision processes really do lead to new insights and outcomes, which will help maintain crop returns through the use of alternative technologies.
Shifting the Value Chain
If a shift to more extensive crops has environmental and regulatory advantages, we need to make it economically viable to grow these crops. To do that, we continuously enter partnerships within the value chain. An example is our partnership with wheat processor Dossche Mills. At the consumer level, they have the potential to create additional value with their low-carbon bread, which translates into a premium for participating growers. The market for plant-based dairy alternatives is another very promising one. In some cases, we may even choose to invest in the value chain and, therefore, in the development of new markets, such as biobased building materials.
Measure and Improve
Of course, there are major challenges, but we also see major opportunities in the current and future market. Many businesses are confronted with increasing demands for lower carbon emissions but do not yet know how to meet those demands. Data can be part of the answer or even the starting point. If we are able to maintain crop yields while lowering environmental impact and prove this with data, we will be able to establish an economically sustainable farming industry. And a responsible food chain for future generations with good soil quality, healthy animals, thriving nature, and a fair income for farmers and growers.
