Dairy suffers, but image and 'hi-protein' give hope

The European dairy industry is suffering due to an abundant milk production and sharply fallen commodity prices. This situation cannot be ignored at the annual meeting of the umbrella organization EDA, but entrepreneurs are trying to stay positive and see perspective in an improving image. Especially the strong demand for 'hi-protein' is notable. Chairman Albert de Groot (also CEO of Vreugdenhil Dairy Foods) claims to have never experienced in his more than 30-year career in the dairy sector that prices plummeted so hard and so quickly as in recent months. There is pain being felt. Fellow entrepreneurs confirm this. However, not much more is being said about the market. It is not allowed due to competition rules, and the EDA is also trying to look at the longer term, beyond the economic cycle. And after difficult times, there are also other moments. Moreover, it seems that society is becoming more positive towards dairy again. Young generation Gone are the days when milk fat was seen as unhealthy, as noted by consultants from McKinsey. It is now more neutral, says partner Karl Nilsson. On the other hand, a whole young generation is becoming interested in dairy proteins. The price is currently facing challenges, but the image has improved. This is an important consolation for the dairy sector. Aside from the market, there are still plenty of challenges for the dairy farming and dairy sector. Rob de Wijk from the Hague Center for Strategic Studies can also comment on this. He emphasizes the importance of dairy and food production in general as a strategic asset. ASML and agriculture According to him, for the Netherlands, it is even one of the very few strategic assets, along with ASML. In De Wijk's opinion, the Dutch government should not only ensure that there is an agricultural sector left, but also that there is enough of it remaining. Quality alone is not enough; quantity matters too. It is unfortunate that many NGOs do not pay attention to this. They reason too shortsightedly, and like many other Dutch people, primarily from the thought of 'not in my backyard.' This attitude could cost them dearly, according to him. One fortunate aspect is that there is now a different European Commission, which – according to Alisa Tiganj, a member of the cabinet of agriculture commissioner Christophe Hansen – no longer imposes everything from above on agriculture but works together with the sector on better and simpler policies. A new package of simplification proposals is expected by December, in a month, and the Commission also wants to continue to support farmers afterwards. Lobby work in Brussels The European Commission has become convinced since the Russian invasion of Ukraine that it must be more protective of its own farmers. Moreover, more attention must also be given to other power factors, such as China. Lobbying by organizations such as the EDA also helps. The approval for using processed manure as a fertilizer substitute – known as Renure – was achieved through pleas from many parties, according to the EDA also partly by them. Just as the emission charge (ETS) has been moderated, partly thanks to the EDA. The organization has an office in Brussels and regularly consults with the Commission and the European Parliament from there, which is quite different from the time when the 'Green Deal' was rolled out across Europe, and the dairy sector is pleased with that. Europe wants to keep farmers, must keep farmers, said also outgoing Dutch minister of Agriculture Femke Wiersma during a brief appearance.