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Landing page Holland General introduction Movies

Holland is...

...and Holland is... About 16.3 million inhabitants
A gross national product of 506 billion euro An average household of 2.2 persons

...and Holland is... Average temperature 8.6º C
1,480 hours of sunshine Rain up to 804 mm 4 seasons

...and Holland is...

Click on a movie button Highlights of Dutch agribusiness
Made in Holland Chinese Dutch English French German Spanish Russian

Landing page Economics
General Soci-economic

Economy of The Netherlands
Mixed market economy Focus on foreign countries Good financial and business service Sound infrastructure Port of Rotterdam in top 3 Transit sector which plays a key role on an international level

Economy of The Netherlands
The Netherlands has a mixed market economy, in which both the private and public sector play important roles. The economy has a strong international orientation. The Netherlands is one of the wealthiest countries in the world, with an excellent reputation for trade and a high level of financial and professional services. It is among the three largest agricultural exporters, next to the United States and France. The Netherlands has a good transport infrastructure. The Port of Rotterdam is the largest transshipment port, making the Netherlands a major transit country for all sorts of goods. There is little social unrest and our workforce has a high productivity. All this has decided many international corporations to establish their headquarters here.

Socio-economic key data
Surface area : 41,543 km2, (33,783 km2 land) Population on : 16.3 million Work force (2005) : 7.4 million Gross National Product (2005) : 506 billion euros Per capita income (2005) : 26,648 euros Inflation (2005) : 1.7% Unemployment (2005) : 6.5%

Socio-economic key data
The Netherlands is one of the smaller countries of the European Union, comprising about 41,500 km2 and covering 0.008% of the world's total surface area. More than half of this area is farmed, and about 8% is woodland. One quarter of the Netherlands lies below sea level. Our population density, the mean number of inhabitants per square kilometer, is 483, making the Netherlands one of the most densely populated countries in the world. About 19% of the population lives in extremely urban surroundings, and almost 23% lives in a highly urban environment. A fifth of the population lives in non-urbanized areas. Amsterdam, with a population of 743,000, is the capital of the Netherlands. Rotterdam and The Hague are the next largest cities, with populations of 596,000 and 472,000 respectively. The rural areas in the Netherlands are under considerable pressure from development. Finding a balance between the different functions of the rural areas, between agriculture, nature, business parks, housing and roads, is a political matter.

Landing page Agri-sector
Importance of the Dutch agri-sector Export agricultural products top 12

Importance of the Dutch agri-sector
“Agri-sector accounts for 10% of Dutch prosperity and job opportunities” Great importance to the Dutch economy 10% of GNP (GNP = € 506 bn) 1 out of 10 jobs Strong international orientation (especially EU) Agri-export € 51 bn in 2005 (= 18% of total exports) World's second-largest exporter of agricultural products Agri-import 11% (€ 28 bn) of total Dutch imports

Importance of the Dutch agri-sector
The agri-sector’s importance to the Dutch economy in general is considerable. Together, primary agriculture and horticulture, supply and processing industries, wholesalers and distribution make up 10% of the total Gross Domestic Product (506 thousand million euros) and provide one in every ten jobs The Dutch economy has a strong international orientation and the agricultural sector is no different. In 2005, the Netherlands exported agricultural products with a value approximating 51 thousand million euros, which was equivalent to 18% of the total export value in that year. Most exports go to other Member States of the European Union. At the same time, the Netherlands imported 28 thousand million euros worth of agricultural products or 11% of the total export value of the Netherlands in that year. Global exports of agricultural products amounted to USD 687 thousand million. The Netherlands is the second largest exporter of agricultural products in the world. The ten leading agricultural exporters accounted for a share of almost 57% in this.

Export agricultural products top 12 (USD mln in 2005)
United States 76,055 The Netherlands 54,820 France 52,176 Germany 47498 Canada 35,485 Brazil 33,681 Belgium 30,286 Spain 28,841 China 28,579 Italy 25,510 United Kingdom 21,737 Australia 21,305 Other countries 275,109 Total 731,082 Source: ITC/WTO

Landing page Export Composition export package
Overview most successful exports Trading partners exports Trading partners imports

Composition of the Dutch export package
Very varied Ornamentals and plants form largest product group € 7.6 bn in 2005 (= 15% of agri total) Vegetable exports exceed € 3.4 bn Meat and dairy very important in import and export (in 2005 € 5.6 bn meat and € 4.3 bn dairy products) Dutch exports Total Share of domestic raw materials Agriculture and nutrition 20% 65% Chemicals 15% 36% Electrical Engineering 21% 12%

Composition of the Dutch export package
The trade in agricultural products to and from the Netherlands is diverse. Ornamentals and plants make up the bulk of agricultural exports. In 2005, the value of these exports equaled 7.6 thousand million euros, which is 15% of the total agricultural product export value. But with a value of more than 3.4 billion, vegetable exports also occupy an important place in the export package. Other major export products are meat and meat products (5.6 thousand million) and dairy products (4.3 thousand million euros). In addition to these exports a substantial amount of agricultural products is imported into the Netherlands, mainly meat and dairy products.

Overview of the Netherlands’ most successful exports
Product group Share of world export market Export value (USD million) 1. Cut flowers (AF*) 84% 2,815 2. Flower bulbs (AF) 83% 800 3. Coconut oil (AF) 68% 93 4. Chloroacetic acids (PC) 65% 33 5. Cashew nuts (AF) 64% 65 6. Computer chips (CS) 61% 1,568 10. Polaroid film (L) 55% 246 11. Cocoa butter (AF) 568 12. Cocoa powder (AF) 54% 534 15. Mussels (AF) 51% 121 *The abbreviation in parenthesis stands for the sector of origin: AF = Agriculture and food cluster PC = Petroleum and chemicals CH = Computers and semiconductors L = Leisure

Overview of the Netherlands’ most successful exports
The list shows that the Netherlands is a successful exporter of exotic products such as coconut oil and cocoa butter/powder. Of course, our competitive advantage is not in the cultivation of raw materials used for these products, but mainly in their processing. The Netherlands’ historical background means it has a strong position in this market segment, which has been maintained thanks to the country’s favorable situation in a large European market.

Trading partners export
More than 80% exported to EU Germany is main trading partner (more than 25% of total, € 13 bn in 2005) Trading partners’ share in % Dutch agricultural exports (2005) Germany 25.7 United Kingdom 11.6 France 10.4 Belgium 10.2 Italy 7.2 Spain 3.6 Other EU 12.9 United States Russia 1.5 Switzerland 1.2 Other countries 12.1

Trading partners export
About 80% of Dutch export is to the EU. Germany has always been our most important trading partner, followed by the United Kingdom, France and Belgium. In 2005, over 13 thousand million euros worth of agricultural products, more than a quarter of the total agricultural export, was shipped to Germany.

Trading partners imports
Trading partners’ share in % in Dutch agricultural imports (2005) Germany 22.2 Belgium 15.3 France 8.3 United Kingdom 3.8 Spain Italy 2.4 Other EU 6.7 United States 3.2 Other South-America 3.6 Argentina 2.7 Other countries 18.7

Landing page Success factors
Trading culture and vision Quality and sustainability Knowledge and innovation

Trading culture and vision, specialization
Competitive power = economic specialization Globalization started with the VOC Dairy and flowers good example “Producing products where circumstances are best leads to worldwide flows of goods.”

Trading culture and vision, specialization
Having a competitive edge is closely tied to economic specialization. As soon as it was not necessary for everyone to produce their own food themselves, some people were able to specialize in other activities. The industrial revolution, in turn, led to a sharp decrease in the costs of transport, so that goods no longer had to be produced in the immediate vicinity of the consumer. The result is an integrated global economic system that is still growing. Increasingly, products can be produced wherever conditions are best: worldwide goods flows. The economic globalization process which began centuries ago with the Baltic Sea trade and the Dutch East India Company can still be seen in the present economic structures of countries. Dairy and flowers are two good examples of agricultural sub-markets in which the Netherlands has built a strong position over the years and has been able to successfully maintain this position by embracing new developments

Trading culture and vision, added value
Globalization shifts production to 'low-wage countries’ The answer: develop products with higher added value (convenience) Good examples: Milk production (Argentine and Asia) (answer: tastes and special characteristics) Pot plants (Africa, Asia and Latin America) (answer: exclusive products and JIT delivery)

Trading culture and vision, added value
In addition to the traditional global suppliers of dairy products (Europe, New Zealand, and Australia), other countries and regions are now emerging. Argentina, for example, has been able to raise production levels substantially thanks to its low production costs, and milk production is increasing quickly in Asia. In Europe’s dairy industry, the Common Agricultural Policy’s milk quotas prevent milk production from increasing and the phasing out of export support leaves the European dairy industry in a more difficult competitive position. The Dutch dairy industry is attempting to expand its market by giving added value to its products, such as adding new flavors or healthy additives, or by ensuring that they are more convenient to prepare or consume. In the floriculture sector too, production regions which used to dominate trade, like the EU, are experiencing increased competition from countries in Africa, Asia, and Latin America. At the same time, the demand for exclusive products, greater variety, and increasingly, for just-in-time deliveries, continues to rise. Through innovation and efficient distribution systems, the Netherlands has been successful in maintaining its leading position in the potted plant and cut flower markets. Expectations are that they will continue to do so. The Netherlands operates increasingly as an important logistical hub in the global market.

Trading culture and vision, semigration
Why semigration? Arguments ‘home’ cost escalation (quota prices) decreasing profits no potential for growth restrictions on production environmental laws and regulations Arguments ‘there’ climate lower costs costs of labour Emigration Semigration + Case: The source makes all the difference

Trading culture and vision, semigration
A relatively new phenomenon in globalization is the phenomenon known as semigration. Whereas traditional emigration entailed selling or dissolving your business in the old country, semigration is characterized by dual locality. Semigrants retain their companies in the Netherlands, and open new operations or branches in the new country of residence. Motives behind this process include increasing production costs in the home country due to quota prices, decreasing sales prices, limited opportunities for expansion, and limits on production due to environmental rules and regulations. Major factors for relocating production to Africa include the potential for year-round production and lower energy costs thanks to the climate, as well as lower labour costs and fertile soil. As a result, relocating production abroad can prove to be financially advantageous.

Quality and sustainability, chain management
Continuous quality improvement Ever-increasing standards for sustainability quality safety The answer: Integrated Chain Management

Quality and sustainability, chain management
The Dutch agri-business can distinguish itself internationally by continuing to strive for quality improvement and on-time delivery (just in time). The choice has been made to ensure sustainability, quality and safety by means of strict guarantees. Working in chains, where each link ensures compliance with requirements, is the most commonly technique used to achieve this. Integrated Chain Management is a coherent set of instructions and rules of the game that minimizes the risk of 'incidents', guarantees quality and regulates liability among the links. In the Netherlands there are several chain projects aimed at offering quality and food safety guarantees. The aim is for each link of the chain to guarantee that the next link fulfils a number of conditions and also takes the necessary steps to this end. The intention of the Dutch government is to stimulate and extend these projects further.

Quality and sustainability, CSR
Corporate Social Responsibility Run business with attention for: People Planet “Triple P” Profit CSR sends positive signal to employees and environment (consumers, customers, government, social organizations) Positive influence on Social standing generally Buying behavior of consumers Recognition from shareholders 

Initiative in the company makes general regulations inappropriate Therefore: customization, bringing parties together, developing knowledge and promoting transparency Case: Sustainable industrial estate benefits company image as well as operating results

Dutch agri-companies give top priority to sustainability. In this context, the concept of corporate social responsibility (CSR or "MVO" in Dutch) plays an important role. Corporate Social Responsibility refers to companies that focus on People, Planet and Profit (the tree Ps). This approach yields long-term profits for businesses and society. CSR contributes not only to the realization of a sustainable society, but can also strengthen a company's competitive position as it enables a company to send a positive signal not only to its own employees, but also to its environment (consumers, customers, authorities, social organizations) and society generally. This can have a positive influence on the buying behavior of consumers and the valuation of shareholders. The Dutch government is of the opinion that the CSR initiative rests with the individual company and therefore general regulations providing for this are deemed inappropriate. That is why the authorities have opted for an approach that makes customization possible: bringing parties together, developing and disseminating knowledge and, in particular, promoting transparency (so that stakeholders can get a clear picture of the social responsibility of companies).

Knowledge and innovation, knowledge infrastructure
Knowledge  Innovation Therefore: knowledge infrastructure Centre is Wageningen UR WCFS Universities (Maastricht, Groningen, Leiden Rotterdam, Eindhoven, Delft) TNO Voeding RIVM NIZO Food Research

Knowledge and innovation, knowledge infrastructure
The agri-sector is of real importance to the Dutch economy and culture. The innovation necessary to stay ahead of the game always depended on a solid knowledge base. For the Dutch agri-sector to continue to operate successfully and competitively, this knowledge infrastructure needs to undergo continuous renewal. The centre of this knowledge base is Wageningen University and Research Centre where the greater part of fundamental and applied research takes place. It also houses the Wageningen Centre for Food Sciences, a public-private collaboration between government, research institutes and the sector. A number of agri-food businesses have concentrated their research activities around Wageningen. Relevant research and education takes place in other places too, for institute at the University of Maastricht in the Nutrition and Toxicology Research Institute Maastricht, the University of Groningen, the University of Leiden the Erasmus University in Rotterdam (consumer sciences) and the Technical Universities of Eindhoven and Delft. Furthermore, the Netherlands is known for its training at the level of secondary and tertiary (agricultural) education, which focuses specifically on the practical situation and on management. Other research institutes in the areas of food and agriculture are TNO Voeding in Zeist, National Institute of Public Health and Environmental Protection in Bilthoven and NIZO Food Research in Ede.

Knowledge and innovation, innovation programmes
Food & Nutrition Delta launched by 75 parties in (nutrition companies, SME, sectoral organizations and knowledge institutes) Cooperation (WCFS+) Knowledge Products Also launched in 2006: TTI Green Genetics for plant research and education (genetics, plant pathology and plant physiology)

Knowledge and innovation, innovation programmes
In 2006 the Food & Nutrition Delta innovation programme was set up within the framework of the key area Food & Flowers by some 75 parties that included all large food companies, the SME, sectoral organizations and knowledge institutes. The programme must contribute to putting the Netherlands on the map as Europe's leading innovation region for food. The first phase is the Technologisch Top Instituut Wageningen Centre for Food Sciences (WCFS+). This is a public-private collaboration between government, knowledge institutes and business with a precompetitive research portfolio targeting the development of new knowledge. The second phase of the programme is aimed more at converting the knowledge generated into new products, processes and services, with various instruments being used to actively encourage the SME to innovate. Following on the Food & Flowers programme, the Technologisch Topinstituut (TTI) Green Genetics was launched in the summer of With TTI, the Dutch vegetable input material sector (seeds, cuttings, bulbs, tissue culture and young plants) and the knowledge institutes want to strengthen plant research and education. Three core disciplines will be focused on: genetics, plant pathology and plant physiology.

Knowledge and innovation, increasing productivity
Innovation: “All activities that lead to new products or processes that increase productivity” Examples of innovation technological innovations (tractor, fertilizer) new forms of organization (cooperatives) new forms of financing organic pest control closing the loops (reciprocal use of residual flows) industrial applications of agricultural crops the use of crops for energy purposes Case: Greenhouse as a source of energy

Knowledge and innovation, increasing productivity
Innovation is the key for Dutch agriculture and horticulture: the best way for Dutch businesses to gain a competitive advantage is by introducing new products to the market and by applying more efficient, greener and more animal-friendly production methods. Innovation can be defined as all activities that lead to new productivity-enhancing products or processes. Innovation can therefore be technological (the emergence of the tractor and the introduction of artificial fertilizer in agriculture are such examples), but may also include new organizational methods (e.g. agricultural cooperatives) or new methods of financing. the greenhouse industry has in recent years seen a high level of technological advancement, with crop cultivation (climate, feed) increasingly controlled by computers. There are also many practical examples of relatively new environmental technologies, such as organic pest control and recycling loops based on mutual benefit on the principal that one man’s waste is another man’s raw material. In greenhouse farming, automation has soared in recent years: the cultivation of crops (climate, nutrition) has increasingly been entrusted to the computer. Away from the food sector, there are interesting prospects for the industrial application of crops.

Landing page Developments
Agricultural and horticultural companies Farmland and production value

Development of the agricultural and horticultural companies
In 10 years the number of agri- and horticultural companies dropped by 1/3 to 81,828 in 2005 Strong growth in mega farms (combined capacity up from 5% to 17% in 10 years) Dairy farms 21,334 Other grazing stock (cows, sheep, goats) 18,666 Arable farms (cereals, sugar beet, potatoes) 12,369 Intensive livestock farms (pigs or poultry) 7,175 Field vegetable and glasshouse sector 15,031 Companies combining several production sectors 7,253 Total 81,828

Development of the agricultural and horticultural companies
The Dutch agriculture and horticulture sector entered a new phase in the last few decades of the twentieth century and is now characterized by expansion and increase in intensity and productivity. Farms have increased in size but their number has fallen by a third over the past decade to 81,828 farms in 2005. The decline in the number of farms accelerated over recent years. But the number of mega-farms has tripled between 1994 and A typical mega-farm would have some 320 dairy cows 12,500 fattening pigs, 160,000 layers, 340 ha arable land or 3.5 ha glasshouse horticulture. In 2004, such mega-farms would be six times the size of an average farm. The Netherlands had some 1,350 mega-farms in 2004, accounting for 17% of total production capacity, whereas ten years ago this would have been 5%. Mega businesses are most often found in glasshouse horticulture.

Developments in farmland and production value
3.7 million ha 52% farmland = 1.9 million ha = 1.2% of EU-25 2% permanent crops 40% permanent grassland 58% arable and horticulture crops 

Production value NL 2005 € 18.6 bn Total is 1.7% GNP EU-25 average 1.6% € 10.2 bn arable farming and horticulture 51% ornamentals € 8.4 bn stock farming and livestock products 43% milk

Farmland The Netherlands has a total land surface of over 3.7 million ha. Some 52% of the land, or 1.9 million ha, is farmland. This is 1.2% of the total farmland area in the EU-25. Of the total farmland in the Netherlands 58% is under arable and horticulture crops, 40% is permanent grassland and some 2% is under permanent crops. Production value Total production value of the agriculture and horticulture sector in 2005 was thousand million euros. Arable and horticulture crops accounted for 10.2 thousand million and the value of livestock and animal products was 8.4 thousand million euros. In the arable and horticulture sector, flowers and ornamental plants made up the largest share, with 51%. Dairy products accounted for the lion’s share in the livestock and animal products sector (43%). The production value of the agriculture and horticulture sector was 1.7% of the Gross National Product, slightly higher than the EU-25 average, which was 1.6%.

Landing page Trends Organic farming Agrologistics

Organic farming 2.5% organic farming 1,377 certified companies
Mainly grass and feed crops Middle position within EU Large part is exported, mainly to UK, Italy and Germany

Organic farming In 2005 the land under organic crops was 2.5%. An area of 48,765 ha was under organic crops by the end of 2005, 1.3% more than in By the end of 2005 there were 1,377 certified farms, roughly the same number as in Most of the organic area, 31,243 ha, is grassland and silage for grazing stock. Potatoes, fruit and vegetables cover an area of 6,381 ha, cereals an area of 5,306 ha. Another 5,835 ha is either set-aside, nature area or ornamental crops. Compared to the rest of the EU the Netherlands, with its 2.5% area under organic crops, takes up a position somewhere in the middle. A large proportion of the organic products grown in the Netherlands is sold abroad. As much as 65% of organic open field vegetables are exported, mostly to the UK and Germany. In ,000 tonnes of organic potatoes were exported, mainly to the UK, Italy and Germany. The Netherlands imported 2,500 tonnes organic potatoes to meet consumer demand at home. They were earlies, mainly, and came from Italy, Germany and Israel.

Organic farming, market development
Market development Organic Farming (MBL) Increasing the consumption of organic products A sustainable society

Organic farming, market development
The organic agriculture policy document describes the government's efforts to promote organic agriculture, such as the promotion of organic production and the dissemination of knowledge. The aim of the Organic Agriculture Market Development covenant (MBL) is to persuade ‘light users’ to buy organic products more frequently. Consequently, increasing the range on offer is important, for example by offering a wide selection in supermarkets and more organic catering. Organic would have to be a logical part of the consumption pattern because of the taste and the practical contribution the consumer makes to a sustainable society. MBL is a joint venture of business and social organizations. A media campaign, active involvement by chain managers and stimulating planning in the different sectors also form part of the approach. Business itself deals with the product demonstrations and consumer information. Sales channels such as catering are also included. With the focus on ‘light users’ the familiar large supermarket chains are drawn in.

Agrologistics Rotterdam largest port for importing vegetables, fruit and vegetable oils into the EU Amsterdam for cacao beans, keeps 60% of world stocks 

Agrologistics Thanks to its geographical position the Netherlands has built a coordinating role for itself, managing the trade flows of farm products and food coming in from overseas and going out to the European hinterlands. Rotterdam, for instance, is Europe’s largest port for imports of fruit, vegetables and vegetable oils, whereas Amsterdam is the world’s leading transshipment port and entrepot for cocoa. The Netherlands accounts for 30% of the world’s cacao powder and cacao butter production and as such is a leading producer in the global market.

Agrologistics One out of three trucks in the Netherlands is filled with flower & food products One out of ten carries ornamentals About 700 shipping companies operate conditioned transport with a total turnover of almost € 1 billion

Agrologistics Simultaneously, the farming and the food and drinks manufacturing industry (the agri- sector) has developed strongly in the Netherlands itself on the back of an efficient transport sector and an adequate physical infrastructure with seaports, airports, inland waterways and roads. The vast majority of the agricultural products is transported by road, for example from the animal feed factory to the farm, from farm/market garden to auction and from there to buyers at home and abroad. One out of three trucks in the Netherlands is filled with flower & food products. One out of ten carries ornamentals. About 700 shipping companies operate conditioned transport with a total turnover of almost 1 billion euros.

Agrologistics, improving logistics
Distance Product diversity Road transport Congestion in cities Traffic jams Time The Agrologistics Platform stimulates innovative projects initiated by the agricultural industry to improve the effectiveness and sustainability of the logistics of agroproducts and animals. Case: Oil Ferry

Agrologistics, improving logistics
Apart from the growing distances between primary producers and consumers there is an increasing diversity of products on offer. Consequently the number of kilometers traveled by agricultural products and food is increasing. Over the last twenty years, for example, the amount of agricultural produce and food products transported by road doubled. If this trend continues, they will double again over the next twenty years. Resulting in an increase in traffic leading to more congestion in cities and bigger traffic jams on the motorways. In the Netherlands agricultural entrepreneurs, logistics companies and knowledge providers, such as universities and research institutes, have joined forces tot tackle the problem in a government-supported initiative known as “Platform Agrologistics”. The Platform challenges the different players in the filed – including farmers, the food processing industry, retailers and logistics suppliers – to come up with innovative solutions to improve logistics efficiency. Ideas will play a key role. The Platform will support good ideas not by means of funding, but by providing good advices. “Platform Agrologistics” activities are designed to support the “Vision Agrologistics”, published in by both the Ministry of Agriculture and the Ministry of Transport.

Landing page Chains Arable farming Ornamentals Fisheries Meat
Food, drinks and tobacco Horticultural food production Dairy

Arable farming chain Raw materials Potatoes Cereals Sugar beets
Industrial products Potato starch Sugar, sweeteners from cereals, maize, potatoes Applications Foodstuffs, paper, construction, textile, adhesives Sweeteners, soft drinks Consumer products: chips, crisps, bread, potato starch 

Arable farming chain Key figures of the arable farming chain
Total area cultivated approx. 820,000 ha The Netherlands is the largest supplier of potatoes and potato products to the European market In 2004 there were approximately 12,600 arable farms Pig farms are the largest buyers of potato by-products

Arable farming chain For the small arable area, the Netherlands has a remarkably large processing industry. The arable chain comprises mainly potatoes, cereals and sugar beet. After cultivation in the field the raw materials are processed into consumer products such as chips, crisps and bread. There is a separate huge market for potato starch, with applications such as foodstuffs, paper, construction, textile and adhesives industry. Another segment is sugar, produced from sugar beet, but also sweeteners from cereal, maize and potatoes (isoglucose, glucose and fructose). These are important raw materials for soft drinks, for example. Arable farming has built a reputation as supplier of potatoes of excellent quality. The secret lies in the location near the sea, which keeps the prevalence of diseases at a low level, combined with fertile soils. The high level of skill among the growers and the presence of first-rate knowledge and research institutions contribute to the success of the Dutch potato sector. 

Arable farming chain The cultivation of seed potatoes is the crown jewel of the arable farming sector. With a share of 75% of the world market for seed potatoes, the Netherlands is the world leader in this field. Sound input material is very important to enable quality in the rest of the chain. The quality level of the end product largely determines the crop price. The NAK (Dutch General Inspection Service for Agricultural Seed and Seed Potatoes) inspects fields and lots and certifies the seed potatoes in accordance with strict legal standards, which are actually stricter than the EU minimum standards.

Ornamentals: Netherlands = flower country
Breeding Ornamentals Cut flowers Pot plants Garden plants Trees Bulbs Trade markets Asia Japan Russia Germany USA UK etc. Of the total export of ornamental plants in the EU, the Dutch share is 70% and for bulbs it is as high as 93%. 

Ornamentals: Netherlands = flower country
The Netherlands is a country of flowers. To many people outside the country, the name Holland evokes images of tulips and fields full of bulbs. However, the cultivation of ornamentals also includes cut flowers, plants for potting and flower beds, trees, bulbs and related industries engaged in improving, supply, trading and auctions. The floral character, the constant renewal of the range and the growth of the market make it one of the most dynamic sectors of the Dutch agricultural and horticultural industry. A wide range, technological leadership and unique horticultural auctions have enabled the sector to become a supplier of ornamental products to the farthest corners of the world. ‘Flowers from Holland, naturally’ is the slogan in the ornamentals business. It sounds pretentious, but the figures bear it out. Of the total export of ornamental plants in the EU, the Netherlands accounts for 70%; for bulbs it is as high as 93%. Because of its own range, flower auctions, international trading companies and Schiphol airport, the Netherlands has become a world centre for trade, including the onward transport of flowers from all over the world.

Ornamentals, quality control
Supplier Classification by: quality, freshness, colour, shape and appearance as well as cutting, sorting, refrigeration and transport Therefore: statements of conformity Buyer

Ornamentals, quality control
The main quality control of ornamentals takes place upon arrival at the auction. Inspectors classify the goods delivered in accordance with general and type-specific quality rules. These are based on agreements between producers and purchasing traders as regards quality, freshness, colour, shape and appearance. Besides the external quality, traders and retailers also ask for guarantees about what they cannot see, such as the treatment of the product during cutting, sorting, packaging, refrigeration and transport. Likewise, environmental requirements must be met, and even a supplier's social policy is becoming more and more important to the buyers. In order to make such guarantees possible, various quality marks have been introduced into the ornamentals sector.

Ornamental plants, Milieu Programma Sierteelt (MPS)
80% complies with MPS standards for varietal purity, varietal identity and health BKD inspectors evaluate bulbs on: varietal identity viruses bacteria moulds

Ornamental plants, Milieu Programma Sierteelt (MPS)
The Milieu Programma Sierteelt (MPS) has become an important standard in the market. Almost eighty per cent of the ornamentals are cultivated to MPS standards. Varietal purity, varietal identity and the health of the nursery products are regulated by EU directives. The quality service NAK Tuinbouw checks that growers, propagators and breeders do not put products on the market that do not conform to these rules. The Bloembollenkeuringsdienst (BKD, bulb inspection service) has been legally appointed as the quality watchdog for the bulb sector. Inspectors already inspect the bulbs in the field for varietal identity, viruses, bacteria and moulds.

Ornamentals, logistical centres
Merger into € 4 bn cooperative on 1 January 2008

Ornamentals, logistical centres
Dutch auctions are advanced logistical centres and as such they play an important role as international market places for flowers and plants. The flower auctions Flora Holland and Aalsmeer are the world's largest for marketing ornamental plants. Foreign material comes mainly from Africa and South America. The supply and delivery is strongly aimed at all growing areas all over the world and delivers the products to all international markets. As of 1 January 2008, the two auctions will merge to form a powerful sales co-operative with a turnover of 4 billion euros. The main objectives of the merger are to strengthen the market position of suppliers and customers and to save costs by enhancing efficiency. A characteristic of all sectors in the ornamentals sector is the speed with which companies implement innovations in their business. Whether these are technical improvements or a new variety with trendy features, they are eagerly pursued. Being out in front and innovative is a collective challenge. Facts and figures 40% of the plant variety rights applications world wide come from the Netherlands The Netherlands is the largest seed exporter The Netherlands is the world centre for ornamental plants

Share Netherlands in the EU in %
Fisheries Most efficient fishing fleet in Europe, contribution of fishing is limited 2006 quota allocated for some important species (x 1,000 kg) Species Area Quota Netherlands Share Netherlands in the EU in % Sole North Sea 13,085 74.1% Plaice 21,470 37.4% Cod 2,226 9.6% Herring 79,936 17.6% Mackerel Western waters 20,954 5.0% Horse mackerel 46,096 33.6%  Source: Ministry of Agriculture, Nature and Food Quality

Fisheries Although the sector does not contribute much to the gross domestic product, the Dutch fishing fleet is the most efficient in Europe, and probably even the world. Fishing is subject to quotas, which are fixed every year by the Fisheries Council. Every Member State is allocated Total Allowable Catches (TACs) after advice has been won from the International Council for the Exploration of the Sea.

Fisheries, the Dutch fleet
By the end of 2004 the Dutch fisheries fleet consisted of 473 vessels and 2,440 crew. The vessels are categorized according to the species of fish targeted. The Dutch fisheries fleet 2004 No. of vessels No. of crew Yield (in € mln) Cutters 367 1,568 245 Distant-water fisheries 17 613 131 Mussel fisheries 69 208 60 Other coastal fisheries 20 50 5 Total sea and coastal fisheries 473 2,439 441 Source: LEI

Meat 90% of the sector takes part in the ICM Marketing Board
Livestock, Meat and Eggs Integral Chain Management (ICM) 90% of the sector takes part in the ICM 

Meat The Netherlands is competitive in the field of meat production and export. A decisive factor in this sector is the intensive cooperation within the chain and attention to quality and food safety. One good example is the ICM system (Integrated Chain Management) developed by the Livestock, Meat and Eggs Marketing Boards (PVE) to offer guarantees for the quality, origin and production of meat. The ICM covers pigs, free-range pigs, beef calves, chickens, turkeys and eggs. The participants are not only farmers; vets, transporters, dealers and meat processors are also involved. All links in the chain are concerned with quality, food safety and traceability. Each link must prove that it has obeyed the rules. The next link then proceeds on this basis. The Marketing Boards have the ICM regulations checked by independent bodies. About 90% of the sector takes part in the ICM.

Meat The Netherlands strives for sustainable animal breeding.
In 2005 the Dutch livestock herd (in agricultural operations) numbered: 92,914,000 Chickens (of which 44,496,000 broilers and 30,513,000 layers) 11,312,000 Pigs (of which 5,505,000 porkers) 3,799,000 Cattle (of which > 1,433,000 dairy and breeding cows (624,000 calves (white) and 204,000 calves (pink)) 1,363,000 Sheep 1,245,000 Turkeys for meat production 292,000 Goats 133,321 Horses and ponies

Meat The Netherlands strives for sustainable animal breeding, which requires a high level of animal welfare and animal health. This awareness exists not only among farmers, but also and especially among consumers. In a country with as much livestock as the Netherlands, issues concerning the health and welfare of farm animals play an important role. Facts and figures Because of the experience gathered of the different animal disease crises, the Netherlands is quite frequently consulted about the combating of animal diseases. When it comes to the lowest cost price for pigs, the Netherlands is still one of the leading countries in Europe. The Netherlands is a large exporter of breeding stock and dairy semen. Each year more than 50,000 head of breeding cattle find their way to Europe and beyond, and some 2.25 million doses of dairy semen are exported.

Food, drinks and tobacco
Largest subsector of the industrial sector About 4,500 companies Approx. 144,000 employees Half of turnover outside NL, of which 3/4 within EU Many companies are part of multinationals Investments in 2004 NL € 27.4 bn abroad, of which € 16.5 bn outside the EU Foreign investment in NL € 29 bn, of which € 15.4 bn from USA 

In 2004 the Dutch food, drinks and tobacco industry totaled 4500 businesses, more than 10% of the total number of industrial enterprises in the Netherlands. More than 144,000 people were employed by the industry. The sector has a strong international orientation. Half of its turnover is realized abroad, three-quarters of which in other EU Member States. The processing industry in the Netherlands comprises a whole range of businesses producing and selling food, drinks and tobacco. Many of these businesses are part of a multinational company. The larger businesses are leading investors abroad. In 2004, the Dutch food, drinks and tobacco industry invested 27.4 thousand million euros abroad, thousand million of which outside the EU. In the same year foreign investors, mainly from the US, also put some 29 thousand million euros in Dutch food companies. In 2004, US companies invested 15.4 thousand million euros in the Netherlands. (De Nederlandsche Bank, 2006).

The top ten Dutch food concerns in 2005 Company Global turnover (x € million) Employees Product groups 1. Unilever 39,672 206,000 Food and drinks 2. Heineken 10,796 64,305 Beer 3. Sovion 6,285 14,000 Meat 4. Friesland Foods 4,419 16,438 Dairy 5. Campina 3,569 6,811 6. Nutreco 3,002 6,993 Animal nutrition, poultry meat 7. CSM 2,618 8,458 Sugar, bakery supplies and lactic acid 8. Numico 1,988 Baby food and clinical nutrition 9. Wessanen 1,877 7,349 Natural foods and convenience foods 10. Provimi 1,585 8,000 Animal nutrition Source: Annual reports and websites

Multinational companies The Netherlands houses a number of large foreign multinational companies; some of them operate on several continents. These multinationals are often leaders in the field working with partners abroad. In 2005 the top ten Dutch food concerns jointly had a turnover of over 75 thousand million euros worldwide.

Horticultural food chain


The Netherlands offers a wide selection of agricultural products, which are marketed all over the world. Most of these are grown carefully and subject to strict control on home soil. Profiting from the good infrastructure, with Schiphol airport and the Port of Rotterdam as distribution centres, the sector has a strong international orientation. The Netherlands is operating more and more as a year-round centre for the trade in and distribution of products from other parts of the world. The Dutch horticultural food sector produces high-quality products. In all links of the chain, from farm to table, attention is devoted to quality and sustainability, with control systems playing an important role. The strong position of the Netherlands, despite its small surface area, on the world market was reached among others by applying efficient production methods and being open to innovation and improvement. The Dutch agribusiness has a long tradition of innovation, leading to a broad offering with consistent growth.

Precision agriculture contributes to efficiency improvements Mechanical alternatives Organic pest control Reduction of emissions: pesticides, heat, C02 and fertilizers NAK tuinbouw checks for varietal identity varietal purity health quality 

Major efforts are made to further reduce the use of crop protection agents in horticulture. Significant contributions are made by precision agriculture (through advanced measuring and dosing techniques), mechanical alternatives and the use of biological pest control. For reasons of business economy alone, every gardener already strives to reduce emissions of pesticides, heat, C02, fertilizers and light as much as possible, because any loss of resources costs money. Where recovery is possible, for example in the case of heat, it is usually practiced. For many years the greenhouse sector has been working steadily towards a fully enclosed cultivation system. The ideal is to waste nothing and to allow everything that is no longer needed to leave the greenhouse in a controlled manner. With water this is already frequently being done, especially in the cultivation of fruiting vegetables. This minimizes the loss of fertilizer at the same time. The Nederlandse Algemene Kwaliteitsdienst Tuinbouw, or NAK tuinbouw for short, handles the quality inspection of vegetable cultivation. This is always done on the basis of EU directives. The inspectors check the material for varietal identity and varietal purity. They also check the health and external quality.

Large breeder Trade Wholesaler Cooperation Small breeders

Chain management in horticulture is multifaceted. There are light and heavy forms of cooperation. Some large greenhouse operators conclude contracts directly with a chain store, delivering their products exclusively to this customer and observing contractual provisions about quality, environment and packaging. There are also associations of growers who combine their offering and then channel their sales via an intermediary or wholesalers. A number of such collectives aim to distinguish themselves on the basis of extra quality, environmental responsibility and food safety. They then demonstrate this by marketing under their own brand. Facts and figures Almost one quarter of European vegetable exports come from the Netherlands The development of glass greenhouses started in the Netherlands in 1860 The triangle The Hague-Rotterdam-Hoek van Holland is Europe's vegetable garden There are 5,337 companies operating in the horticultural food production sector

Dairy chain Dutch dairy products are renowned for high quality; 60% is exported The dairy chain owes is position to Strong dairy sector Favourable natural conditions Sound infrastructure Cooperation, upscaling, internationalization and innovation COKZ checks Products Production process 

Dairy chain Dutch dairy products are renowned for their excellent quality. It is no coincidence that 60% of the dairy production is exported. The dairy chain owes its strong position to a strong dairy sector, favourable natural conditions and infrastructure. Cooperation, upscaling, internationalization and innovation strengthen the chain. By far the largest part of the milk goes to fifteen mainly co-operative dairy companies, where the milk is processed into consumer products, especially cheese, but also into yoghurt, custard, drinking milk and butter and raw materials for food ingredients, animal feeds and products for the pharmaceutical industry. In the international market, Dutch dairy and trading companies compete with groups in countries with a lower cost price. Upscaling ensures efficient production. Impeccable quality, innovation and sophisticated marketing are other key factors. Sustainability is an aspect that is approached proactively in the dairy chain. The Netherlands Controlling Authority for Milk and Milk Products (COKZ) monitors the quality of all dairy products produced in the Netherlands. The COKZ has been appointed by government to carry out inspections to ensure compliance with the European directives and the standards set in the Agricultural Quality Act. These standards cover not only the product composition and hygiene, but also the process. Compliance is ensured by means of inspection and supervision in factory preparation rooms, testing of product samples and certification to HACCP standards. The Food and Consumer Product Safety Authority supervises the COKZ and the dairy chain where COKZ is not the supervisor (e.g. where dairy products enter the Netherlands).

Dairy chain 9,257 kilos of milk on average (per cow), with 4.39% fat and 4.42% protein Annual production bn kg milk Dairy sales: 40% Netherlands 40% EU and 20% outside the EU

Dairy chain Every year the Dutch dairy groups spend tens of millions of euros to modernize their factories. A visitor to a Dutch dairy factory will see lots of stainless steel, tanks, centrifuges, machines, smooth tiling and plastic. The production processes are largely automated and computer controlled. Key figures of the dairy chain (2005) The Netherlands has 25,000 dairy stock companies, 15 dairy companies, 800 dairy goat businesses and 550 farm milk processors Average milk production of a piebald (Frisian) cow: 9,257 kilos, with 4.39% fat and 4.42% protein Every year 10.5 billion kg milk is produced and processed Dairy market: 40% Netherlands, 40% European Union and 20% outside the EU

Landing page Policy The Choice for Agriculture
Key elements for the agri-sector Organization chart

The Choice for Agriculture
Triple P People Planet Profit Subtle balance The guideline is sustainable responsible entrepreneurship Government stimulates change and asks sectors to assume responsibility

The Choice for Agriculture
In the vision for the future “The Choice for Agriculture”, the Dutch Government emphasizes its confidence in the future of the agri-sector and its belief that entrepreneurship is the determining factor. The Dutch Government wants its agricultural sector to be an important economic sector that also maintains the liveability of the countryside. The government’s agriculture policy aims for sustainable development, where a balance is continually sought between the three Ps of People, Planet and Profit. The Ministry of Agriculture is faced with major changes in society that have an impact on its policy areas. The focus is increasingly on food and food safety, environmental and welfare issues, the use of green spaces and the changing views about the role and significance agriculture should have in our society. These developments call for adaptations to be made in several sectors and production chains such as intensive livestock production, glasshouse horticulture and dairy farming. The government encourages these changes but the sectors themselves should take responsibility for them.

Key elements for the agri-sector
Vigorous, sustainable agriculture and horticulture Food quality Knowledge and innovation An eye for the international context Agri-focused business climate

Key elements for the agri-sector
Sound, sustainable agriculture: an agricultural sector that meets the demands and requirements of society, that is varied and diverse, serves various purposes, thus contributing to the spatial quality of our countryside, and a sector that can compete internationally. Food quality: Food that is sound, wholesome and safe, of guaranteed quality and which meets a wide range of consumer demands and is the result of well-functioning business chains. Two important elements are (1) improved transparency in the international food chains and (2) stimulating innovation in food quality. Knowledge and innovation: development of a knowledge infrastructure that contri-butes to such challenges as innovation. To this end the government has set up an innovation platform and made extra resources available for knowledge and innovation. An eye on the international context: participation in various forms of cooperation, in such areas as production, marketing, the economy, ecology and nature as well as the generation, application and exchange of knowledge. The Netherlands is an advocate of the liberalization of world trade and reforms of the EU farm policy. Agri-focused business climate: to achieve its objectives - to reduce the quantity of regulations, to resolve problems, and simplify policy - the Netherlands will harmonize standards and requirements, improve logistic processes for import and export, take the one-stop shop approach and try to resolve agrologistic problems where possible.

Organization chart Minister Ministry of Agriculture, Nature and Food Quality of the Netherlands Executive Board Secretary-General Director-General Ministers’ Office Personnel and Organization Department Audit Branch Department of Nature Department of Fisheries Department of Legal Affairs Department of Food Quality and Animal Health Department of Knowledge Financial and Economic Affairs Department Department of Information Department of Information Mgt, Facilities and Services Department of Agriculture Department of Trade and Industry Department of International Affairs Department of Rural Affairs Department of Knowledge Food and Consumer* Product Safety Authority Inspector-General * Falls under responsibility of both the Ministry of Health, Welfare and Sport and the Ministry of Agriculture, Nature and Food Quality * The Risk Assessment Division is an independent unit within the Food and Consumer Product Safety Authority National Service for the Implementation of Regulations Plant Protection Service General Inspection Service Government Service for Land and Water ICT Services

Five reasons to invest in the Netherlands
Strategic location in Europe International business environment Superior logistics and technology infrastructure Highly educated, multilingual & flexible workforce Quality of life

Strategic location in Europe The Netherlands provides a strategic location to serve and service market within the European Union as well as central Eastern Europe, the Middle East and Africa. The Netherlands is central geographical positioned combined with a good accessibility and excellent infrastructure. International business environment The country’s pro-business environment creates a gateway to Europe that helps international companies succeed throughout the continent. An international outlook and openness to foreign investment is firmly engrained in the Dutch culture, and this has yielded a wealth of world-class business partners who know how to deal with global business challenges in today’s economy. 

Superior logistics and technology infrastructure The Netherlands is with the port of Rotterdam, still ranked as the world's 3rd largest seaport while Schiphol Airport is recognized as one of the major business hubs in Europe and has claimed over 100 international awards over the last years. The Netherlands is also classified as one of the most ‘wired’ countries in the world, a dynamic force in electronic commerce, communications and outsourcing. Highly educated, multilingual & flexible workforce The Netherlands features one of the most highly educated, flexible and motivated workforce in Europe. Dutch professionals are also among the most multilingual in the world, enabling them to successfully operate in companies across any industry serving customers throughout the continent. Quality of life The Netherlands is proud to have a high standard of living. The cost of living, housing, education and cultural activities are lower than in most Western-European countries.

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