An application of Olympe in the Netherlands and new possibilities Co Daatselaar & Niels Tomson Agricultural Economics Research Institute LEI/ Agrocenter for strategic entrepreneurship

Contents Context to which Olympe has to fit Development dairy farming in the Netherlands Interactive Strategic Management (ISM) Use of tools Olympe with case Prins family Chosen strategies Some results A way to fit Olympe to ISM-context Further developments Other agricultural sectors

Development dairy farming Netherlands 1990: dairy farms, 2004: Role government changing during last decades First supporting and stimulating Then controlling laws Now facilitating Experiences from several projects with farmers Goal oriented farmers achieve better results than ‘guideline’ farmers Strategic point of view required to improve sustainability Interaction with stakeholders to handle influence from environment and to acquire knowledge No unanimous “best solution”

Interactive Strategic Management: main principles The entrepreneur as pivot Advisor in facilitating role Strategy is leading Sustainability integrated in whole strategy balance between People, Planet and Profit In interaction with environment Dialogue with stakeholders Interactive Strategic Management has been developed to support the farmers in their new role in an uncertain environment. Several ISM concepts and tools developed

Interactive Strategic Management (2) Entrepreneur as pivot Initiative and responsibility with entrepreneur Focus on drive and competences of farmer Advisor facilitates (process-guidance) Improving indicators within strategic framework For farmers individual indicators are no goal itself Start with mission and strategy of entrepreneur From general strategy to improvement plans Develop general strategy with Game Simulation Dairy Make improvement plans fitting with general strategy

Interactive Strategic Management (3) Mission and indication of strategy Why are you a dairy farmer? What are your personal goals? Main results: reasons to be dairy farmer To be independent (make your own decisions) Work in and with nature (animals) Return on investment not a major drive, continuation is. “This is the best job in the world” Goals/strategy Growth Optimizing technical and economical results Improving image of dairy farming

Use of tools: Face-It bench mark tool (1) Tool Face-It is used to benchmark individual farm results. Face-It can work with any database User can select criteria for creating benchmark mirror- group In many cases the mirror group is based upon structure criteria (size of farm (quota), soil type, kg of milk produced per hectare) Helps to analyze strong and weak points Results in report

Use of tools: Face-It bench mark tool (2)

Use of tools: Game Simulation Dairy (1)

Use of tools: Game Simulation Dairy (2) Farmer’s own data Farmer runs program!! Chooses management measures Makes management measures concrete Looks at the results (technical, financial, environmental) Adapts management measures Compares packages Chooses best plan Farmer gets printed version of best plan

introduction 1 quantification screen 7 measure screen choose measures 6 screen edit companyspecific data (prices e.d.) 4 screen choose sector + company 2 Olympe show bedrijfsdata screen 3 edit prices 5 detail screen/popup -crops, - manure 8 Interface Calc-sheet (codes)

Select measures

quantify measures

Use of tools: Game Simulation Dairy (3)

Use of tools: Game Simulation Dairy (4)

Use of tools: Game Simulation Dairy (5)

Olympe with case Prins family: present situation and basic scenario Data Dairy cattle 250 dairy cows, 180 young stock Milk quota 2.1 million kg Land 150 ha.  Basic scenario (scenario 1) Introduction milk premium Replacement of existing barn and milking parlour Investment €550,000,-

Olympe with case Prins family: other scenarios Scenario 2 As scenario 1 plus Installation for biogas including third gasmotor Investment €1,800,000.  Scenario 3 Growth to 350 dairy cows and 250 young stock Modern barn with 3 automatic milking systems and buying of milk quota Installation for biogas including third gasmotor Investering van €3,250,000,-

Olympe with case Prins family: family income from farm Scenario: 2 Scenario: 3 Scenario: 1

Olympe with case Prins family: cash flow Scenario: 3 Scenario: 2 Scenario: 1

Scenario: 2 Scenario: 3 Olympe with case Prins family: own capital

Olympe with case Prins family: further work Good discussion with participants presentation Very interested in possibilities Olympe Further work Risk analysis (e.g. fluctuation of interest rate) Splitting project in trees: herd, biogas Improvements Olympe for Dutch circumstances Dutch income tax Alternative systems of depreciation Import to/export from Olympe (Procedure(?)) Other?

A way to fit Olympe to ISM-context (1) Use of principles of Game Simulation Dairy Farmer runs program! Facilitator gives an introduction (one hour) Interface to enter measures and their quantities Interface invokes Olympe to do calculations Farmer looks at results in Olympe ‘en cours’/’resultats’; explanation during introduction Scenario must be saved After closing ‘resultats’ direction goes back to Interface Farmer can change measures: new scenario

A way to fit Olympe to ISM-context (2)

A way to fit Olympe to ISM-context (3)

Further developments Integration of tools Benchmarking (Face-It) and game simulation (Olympe) under one interface (ISM) Tools must become independent of agricultural sector Building up a network of institutes to exchange methods, knowledge and tools (AgroCenter Europe) In 2006 Global Dairy Farmers was founded. An international network of dairy farmers (Europe, USA, Brazil, Australia, New Zealand) Create a platform for knowledge exchange Develop projects to get high level knowledge input (e.g. World Wide Dairy Monitor and Outlook) Connect global knowledge with national networks

A challenging job to do © Wageningen UR

More information English: Dutch: Co Daatselaar: / +31 (0) Olympe, Stars, GSD (concerning content), ISM Niels Tomson: / +31 (0)320 Tools general (technical), ISM, Olympe interface Other tools we use: Strategic Management Report: Personal report that guides the entrepreneur through the ISM process. Strategic Management Tool: calculates competences, internal and external factors through strategies. www3.lei.wur.nl/LEI_WebTools/ (on this moment only Dutch)