Technological Innovations in the Dutch Agrifood Sector

1. Technical innovations in the Dutch Agrifood sectorPolicy goals, trends and challenges Dr. Evert Jan Krajenbrink, Dutch Agricultural Counsellor in Japan 7 September 2017, Philippines

2. Content of the presentation • The performance of Dutch agriculture and food industry • Dutch innovation model • Sectoral and societal challenges • Technological trends and developments

3. General information • Geographically small – 134th position in the world. • Densely populated country with 17.0 million people – 65st position worldwide. • Strategic central location – 160 million consumers (half of the EU) within a 300-mile (482.8 km) radius. Amsterdam  • Capital: Amsterdam • Currency: Euro (€) • Area: 33,800 km² • Population: 17.0 million • Income per capita: 39 300 euro

4. Performance of the Dutch agribusiness • Agri-food industry is among the top three contributors to the Dutch GDP • € 50,2 billion in added value, almost 10 % of Dutch economy and employment for 660,000 people (directly and indirectly) • Holland is the world's second largest agri-food exporter. • € 94 billion agricultural export (85 bn. Food and 9 bn. Technology) in 2016 (+4,4%) • appr. 80% exported to EU-member states • Wageningen UR the #1 worldwide in agri & food

5. Historical overview of production increase I

6. Historical overview of production increase II Egg production in the Netherlands (in mln. kg) 1924-2012

7. Historical overview of production increase III 1950 • 33 mln. Hens produced 224 mln. kg. eggs • Milk production cow 4.000 liter 2015 • 43 mln. Hens produce 672 mln. Kg. (10,3 bl. Eggs) • Milk production cow 8.200 liter Conclusion Agricultural production 5 times higher in 2015 than in 1950 because of innovation, larger scale and mechanization

8. Comparision of productivity (FAO, 2014)

9. Dutch innovation model: Public-Private Research partnerships “golden triangle”

10. Collaboration between government, private sector, research institutions, on national, regional and local level, Originates from traditional cooperation in education, research and education, but now also creates frameworks for innovation. Co-financing models.

11. Corperate HQ or R&D Innovative Companies Universities in Agri-Food Food R&D centre Regional Food clusters Innovation driven agricultural sector

12. DAIRY FARMING • Specialised dairy farms: • 18,265 • Ave cows per farm: • 89 • Total number of dairy cows • 1.6 mln • Milk per dairy cow • 8,338 liter

13. Challenges Dutch dairy sector • Uncertain market (milkprice and costs feed) • Labour • Environmental issues • Derogation, manure, GHG, • Societal expectations • Animal welfare • Large scale farming

14. PIG BREEDING AND FATTENING • 5,528 farm with pigs • 3,678 spec. pig farms • 12.2 million pigs (16 million before) • Regional concentration

15. The intensive livestock complex

16. Challenges Dutch pig and poultry sector • Currency risk • meatprice in euro andcosts feed in dollar • Increasedcompetitionfrom low labourcostscountries • Environmental issues • Manure, swinefever • Large concentration of production (diseases) • Societalexpectations • Food safety • Animal welfare • Large scalefarming

17. Source: Groente & Fruit Bureau HORTICULTURE IN GREENHOUSES • Area Greenhouses: • 9,818 ha • Number of specialised growers: • 4,788 • Average • Greenhouse • 2 ha

18. Challenges Dutch greenhouse sector • Sustainability • Water use • Biological crop protection systems • Increase of production • Environmental issues • Energy use • Societalexpectations • Laborconditions & costs (Robotics) • Food safety

19. place your image here Source: Tomato World

20. CurrentGlobal AgrifoodChallenges Inputindustry SoftwareProvider Farmer Logistic SolutionProvider FoodProcessor Retail /consumer Transpo rt Transport Transport Cost price& Quality Consumerdemands High-Tech Loyalty On-lineshopping Interoperability Newservices

21. Smart Farming: closing thecyber-physical managementcycle smartsensing &monitoring BIG DATA smartcontrol smart analysis & planning

22. Ag Equipment: mobilenetworks • Tractor and Implement are acting as one network • Always connected! • Cloud / Internet

23. Another example: The Dairy Monitor PAGE 11 Complete animal healthcare in onedevice. Based on sensor data we are able to provide the farmer with valuable insights andactions Heat and Health Detection Early detection of heat and health issues improves productivity by 20% Algorithms run in the cloud FarmerInsights No more graphs to understand, the system tells you what to do! LocationServices Insights & actions Track animal movements and grazing habits to enable organic certifications Sensors WWW.CONNECTERRA.IO

24. Redefining Industry Boundaries(1/2) 3. Smart, connected product 2. Smart Product 1. Product + + + 20

25. Redefining Industry Boundaries (2/2) (according to Porter and Heppelmann, Harvard Business Review,2014) 5. System ofsystems weather forecasts weather maps weather data application 4. Productsystem rain, humidity, temperature sensors weather data system farm performance database planters farm equipment system combine harvesters farm management system farm equipment system seed optimizing system seed database tillers seed optimization application irrigation system field sensors irrigation application irrigation nodes 21

26. Redefining Industry Boundaries (2/2) 5. System ofsystems weather forecasts weather maps weather data application 4. Productsystem rain, humidity, temperature sensors weather data system farm performance database planters farm equipment system combine harvesters farm management farm Yourcompany seed ptimizing seed database e quipment ystem o system s system tillers seed optimization application irrigation system field sensors irrigation application irrigation nodes 22

27. Food and Agro Next: new role of start-ups

28. Example 1: Energy producing greenhouses

29. Example 2: Robotics

30. Thank you for your attention