Duurzame toekomst voor zuivelbranche

Toespraak | 28-09-2010

Speech by Gerda Verburg, Minister of Agriculture, Nature and Food Quality, on the occasion of the opening of the World Dairy Forum, 24 September 2010.

Ladies and Gentlemen,

Every year, Europe processes one hundred and thirty five trillion litres of raw milk. That’s one hundred and thirty five followed by twelve zeros. And this milk is used in food, drinks and medicine.

These one hundred and thirty five trillion litres of milk are produced by a million dairy farms, spread across the continent. The milk is processed by an industry which accounts for thirteen percent of the total food and drink production in Europe and which provides employment to ten percent of the workforce in the food and drink industry.

Ladies and Gentlemen,

I know it usually isn’t a good idea to start a speech with facts and figures. But this time it’s necessary. I want to clearly express the vital importance of the European dairy sector. This is a sector that is not only key for our economy, both nationally and internationally, but is also important for our health. The milk, cheese and butter produced by the European dairy industry form an essential contribution to a healthy diet.

As Minister of Agriculture, Nature and Food Quality, I therefore greatly appreciate the dairy sector, and I closely follow developments in the industry. The Netherlands is an outstanding dairy country. Almost a third of the land in the Netherlands is given over to grass or crops, and our country is home to almost twenty thousand dairy farmers, with a total of one point five million dairy cows that produce twelve million two hundred thousand tonnes of milk each year. And we use this milk to make products we can be proud of. Who hasn’t heard of our famous Gouda cheese? To meet the enormous demand for our products we export to countries throughout Europe, but also much further afield. The Netherlands is within the European Union the largest exporter of dairy products to third countries.

And that is the reason why I – just like you – keep a close eye on developments in the dairy industry. As we know, these developments can be turbulent, particularly if we look to the fluctuating price of dairy products. You may even discuss this during the first workshop.

There are a number of reasons for this, one of which is the changing EU market policy: less intervention, fewer export refunds, in other words: less regulation. You all know what the consequences of this are: the price of butter and milk powder used to be guaranteed at around 28 cents, but since the last policy reforms the price has dipped to 21 cents. Understandably, that has caused considerable unrest. However, these concerns have been partially addressed through the work carried out by the High Level Group on Milk, and has resulted in seven recommendations that were presented to Commissioner Ciolos.

I won’t describe these recommendations as I am sure you are familiar with them. Well, some of you here today definitely are, because you formulated them under DG DeMarty!

The seven recommendations have been discussed in the Agricultural Council in July this year, and will also be dealt with at the forthcoming Council on the twenty seventh of September.

Commissioner Ciolos has indicated he will incorporate these recommendations in the proposals for the industry that he will announce at the end of the year. Fortunately, the price of milk has since returned to acceptable levels.

I will however, briefly tell you what I think about the future of the European dairy sector, particularly in relation to issues such as climate change, sustainability and food security.

Today there are a billion people in the world suffering from hunger. This is of course shocking. But what will the situation be by the year two thousand and fifty, when according to forecasts there will be nine billion people in the world to feed?

Increasing food production is of course one option. But this should not lead to more deforestation, as not only does this harm biodiversity, it also exacerbates climate change, as forests absorb large quantities of CO2.

The task we face is therefore to raise food production in line with the growing population. And that can only be achieved in one way. Environmentally-friendly growth, better use of land, smart technologies, and a good infrastructure. Agriculture holds the key to these challenges, as it can solve one third of the climate issues. We shouldn’t see agriculture as part of the problem but see agriculture is part of the solution.

That is also the reason why I decided to organise an international conference on agriculture, food security and climate change here in The Hague from 31 October to 5 November.

One hundred and eighty UN countries will attend this conference, as well as scientists, civil society organisations, CEOs from the private sector, representatives from financial entities and international charities.

The objective is to formulate a concrete plan of action that will send a clear message to the United Nations Climate Change Conference in Cancun, Mexico in December this year, calling for focussed and innovative investment to make sustainable agriculture a spearhead of international policy. At the same time this will contribute to improving the climate and to food security. That creates a win-win situation.

Of course, sustainability must begin at home. Consider practical matters such as the sustainable use of water, careful management of the landscape and proper care for the welfare of animals.

But also consider sector-wide measures. Measures that contribute to sustainable and safe production, and to safe and quality food. And measures that already address the issue of reducing the use of fossil fuels.

Three years ago, in my vision for the future of livestock farming, I already put a number of ideas down on paper. And over the past three years a great deal has happened here in the Netherlands. Through cooperation in the industry between chain parties, consumers and civil society organisations we have made major progress towards livestock farming that operates with respect for people, animals and the environment.

Allow me to give you a few examples:

Animal welfare is high on the agenda. Dutch dairy farmers can increase their income by putting their cows out to pasture during the summer months. The milk from pasture-fed cows is then labelled and sold in the supermarket.

Agreements have been made to reduce emissions of greenhouse gases by thirty percent. We are currently investigating whether it is possible to reduce methane emissions through developing new types of feed.

Tests are underway to develop synthetic fertiliser replacement products from manure.

In closing I am also making funding available for the production of sustainable energy. A couple of weeks ago I activated a large solar panel on the roof of a barn. This farmer can now generate his own power and as a result his farm is now energy-neutral.

Consumers can also make an important contribution, for example by buying food that is produced with respect for people, the environment and animals. And because producers and supermarkets now use quality labels, consumers know exactly how sustainable their piece of meat, fish or bread is.

And that works well, the information provided on these labels is meaningful and has added value for the consumer. This is in contrast to obligatory labelling for the origin of dairy products as proposed by the European Parliament. In my view this only leads to an extra burden on businesses. I understand you will also address this subject at one of the workshops.

As you can tell, the Dutch dairy sector is evolving rapidly. And this is something I am very proud of. It shows the many capabilities the sector has. Innovative, enterprising, focussed on sustainability and looking towards the future.

Ladies and gentlemen,

I began my story with facts and figures. Figures that again underline the immense importance and economic power of the dairy industry. However, with power comes responsibility. I noticed in the programme that one of the sessions will deal with sustainability and the environment. That makes me happy. Because it’s important to look beyond the economic benefits. Our World Hungers for Action! And your knowledge and skills can make a valuable contribution towards this.

I wish you all an interesting and successful day.

Thank you.