Consumer prices remain the biggest obstacle for transition to sustainable agriculture



Shopper prices remaInside The Most very important impediment for transition to sustainable agriculture

13 October 2021

New evaluation from the Netherlands Authority for Consumers and Markets reveals that The worth premium on sustainably-produced items stays The Most very important problem in transitioning to sustainable agriculture.

The largest impediment To creating agriculture extra sustainable is The greater worth of sustainable merchandise. Research reveals That the majority Dutch consumers Aren’t prepared to pay extra for sustainable merchandise, whereas the manufacturing prices are presently greater than these of non-sustainable merchandise. The Dutch agriculture sector May even be depfinishent for An monumental half on the export market, so overseas consumers’ preparedness to pay for sustainable merchandise Ought to enhance as properly.

On the request of the Minister of Agriculture, Nature and Meals Extreme quality, the Netherlands Authority for Consumers and Markets (ACM) carried out evaluation into worth formation Inside the food current chain for sustainable and non-sustainable merchandise and impediments to sustainability. ACM commissioned Wageningen College & Research to conduct An factor of the research. The report of this evaluation is the Adjust to-As a lot As a Outcome of the Agro-Nutri Monitor 2020.

The outcomes of the Agro-Nutri Monitor 2021 affirm the end outcomes of the earlier monitor, particularly that The further prices of pure manufacturing Are often compensated by The greater worth the producers get for these merchandise. Supermarkets, however, typically make a decrease internet revenue on pure merchandise. The monitor furtherly Checked out The prices for farmers of switching to the manufacturing of sustainable merchandise. The further prices Of producing pure merchandise are presently borne by a small group of consumers Who’re ready to pay A greater worth for these merchandise. However, if The current of pure merchandise will enhance, extra consumers Might Want to be prepared to pay this greater worth. That is the Most very important impediment to the transition to sustainable agriculture.

In its letter to the Minister, the ACM describes potential pathways To creating Dutch agriculture extra sustainable. To stimulate home demand, subsidies and a VAT discount Might be deployed to make sustainably produced merchandise cheaper for consumers. Elevated cooperation between sustainability labels at The eu diploma could make it simpler for producers to cost a premium for these merchandise overseas.

However, It is unprobably that measures To enhance demand Shall be enough on Their very personal. Measures To restrict manufacturing Can furtherly probably be needed, Similar to agreements between farmers To fulfill greater sustainability requirements, elevating the authorized minimal sustainability requirements, voluntary buyouts of non-sustainable farmers Who’re unable To transform or, in excessive circumstances, expropriation of farmers. These measures will clearly have far-reaching penalties for the sector which Ought to be studied In further element.