The players are growing in size and falling in number

Consumer demand is an issue of growing importance in the agricultural sector. The consumer wants to know what’s on her plate; where did it come from, how was it produced?. In addition, sustainability, public health, landscape use and animal welfare are playing an ever growing role in (intensive) cattle farming.

Cost-price management
“At enterprise level profitability, cost-price management and legislation continue to be important themes,” says agricultural business advisor Klaas Bouwman of Schuiteman. “In cattle farming too a significant part of the business operation is bounded by Dutch and European legislation. And because yield prices are set by third parties, cost-price management is of primary importance to many business owners in this sector.”

“This is a difficult and restricted playing field on which the players are growing in size and falling in number,” continues Bouwman.

Phosphate rights
Increases in population and prosperity will continue to help push up demand for dairy in Asia, the Middle East, Latin America and North Africa in the coming years. This demand must be dealt with but at the same time there are considerable challenges relating to minerals, pasture grazing, ammonia and greenhouse gases. “European legislation concerning phosphate rights is a source of considerable uncertainty for dairy farmers,” says Bouwman. “Not knowing whether to plan for the implementation or postponement of these pieces of legislation makes long-term planning difficult, whereas that is so vitally important in a sector like this one.”

Sector knowledge
The only solution, Bouwman believes is this: stay up to date. “Our team brings a wealth of experience and sector knowledge. This enables us to support our clients and we aim to respond as accurately and properly as possible to the changes in the sector.”

Schuiteman Accountants & Adviseurs serves many clients who are engaged in dairy farming, the poultry industry and goat, pig and veal calf farming. And companies related to agro, such as suppliers of livestock housing equipment, product processors, packing stations and brokers of production rights.

Sources: Rabobank, ABN Amro Insights