The transition to a sustainable agri-food sector is the joint responsibility of all stakeholders. Besides Rabobank, it involves organizations in the chain, the government, knowledge institutions and, needless to say, the farmers themselves. What can they do to bring the future we envizage closer?
The transition to a sustainable agri-food sector is the joint responsibility of all stakeholders. Besides Rabobank, it involves organizations in the chain, the government, knowledge institutions and, needless to say, the farmers themselves. What can they do to bring the future we envizage closer?
Restore confidence in government and offer long-term prospects
Restoring trust in the government is crucial to shaping the transition and influencing the pace at which it unfolds. A responsible, sustainable economic system, one in which there is a sustainable balance between production and the environment, requires mutual trust between organizations in the chain, farmers, consumers, the general public and government. To accelerate the process of sustainability, it is essential that the government provides clear, stable licensing frameworks that are sound and facilitate the process and subsidies and schemes, for the longer term. By doing so, this will allow farmers to invest with confidence.
Integrated food policy
To achieve a sustainable economic system that has access to healthy nutrition, the government, organizations in the chain, farmers and consumers must commit to drafting and implementing an integrated food policy with clear objectives and pricing measures, and stricter standards. Important factors in this respect include research on promoting healthy food consumption, steering food consumption in the direction of a more plant-based diet in the Netherlands, transparency and communication on health aspects in production and consumption.
Target-based policy and an area-based approach
Instead of a generic means-based policy, the government should come up with a specific target-based policy. Having a specific target-based policy will give farmers the opportunity and responsibility to achieve targets by customising their operations. It will become easier to measure progress thanks to further digitalization of the sector and the availability of data.
An area-based approach will allow for customization for farmers that is tailored to local circumstances. For this, the government sets frameworks and facilitates implementation, including by issuing and modifying permits.
Demand-driven chains
To move towards demand-driven production, the major chain parties (supplying and purchasing partners in the chain) must act as chain directors in more closed, demand-driven chains where cooperation leads to the growth of distinctive products as far as sustainability, quality and health are concerned. The prerequisite is that true value is the underlying economic model. With this, chains are not or no longer based on profit maximization in the individual links in the chain, and investments for sustainability in the chain are compensated. Production volume can be secured going forward, thanks to demand-driven chains and true value. The government makes it possible to reach chain agreements regarding true value. The first steps have already been taken.
Financial support and rewards
An economic model based on true value will trigger rises in consumer price. The government is developing policies to compensate less well-off consumers. In addition, the government can contribute to true value by sustainably rewarding green-blue services, by co-financing extensification and by bringing the subsidy and tax system into line with this. Business operations outside the food sector also contribute to expanding the revenue model. Here we have in mind income from producing wind, solar and biogas energy.
Uniform measurement methods
Organizations in the chain, farmers and the government use a uniform measurement methodology of sustainability performance that allows linking sustainability performance to public and private incentives. Similarly oriented sustainability incentives also enhance the effectiveness of policies and improve the likelihood of achieving targets. Knowledge institutions can assist in devising sustainability figures and standardising measurement systems.
Research and development
Knowledge institutions have an essential role when it comes to underpinning the decisions related to making food production more sustainable and supporting the government in developing a long-term vision for the agri-food sector. For the package of measures designed to achieve environmental and climate goals, knowledge institutions can indicate how the policy objectives can be most effectively achieved in a context of general welfare, including the costs and benefits. They can also develop effective measurement methods to enable targeted management at farm level and investigate innovations to make the contribution to the environment objectively measurable. They can also take on the task of educating farmers, scientists and policy officials to achieve a sustainable agri-food sector in the Netherlands.