"The jewel in the crown of Dutch horticulture is not the produce- it’s the technology that produces the produce. And wouldn’t one expect that that is where the real value is? Why? Because that’s where the intellectual property is - that’s what you can patent!” says Dr. David Hughes.
In part 2 of his chat with Foodlog founder Dick Veerman (watch episode 1 here), Imperial College London professor and businessman Dr. Hughes explores and explains Dutch horticulture technology, its successes, and the future of Dutch horticulture technology in the global post-Covid market.
When talking about opportunities for Dutch greenhouse technology abroad, Veerman and Hughes discussed that concentrated horticulture in the Netherlands stems from historically successful regional agricultural practices. Today, over 90% of all horticulture produce in Holland is exported to areas across Europe and even to other continents.
Are those physical exports of tomatoes, cucumbers, and capsicum peppers a sustainable business model for the future?
Answering that question, Hughes first highlights the astonishing success of the Netherlands in food trade in general. That a “tiny little country the size of a postage stamp” is the number two food exporter in the world is an obvious sign of eminent logistics and success.
Hughes discusses the case of Dutch green peppers. Dutch capsicum peppers used to be “cream of the crop.” Producing a mass and only therefore relatively low value pepper with extremely good and consistent quality has allowed Dutch growers to compete with U.S. producers. The Dutch export them “air freighted in the belly of tourist airplanes to the U.S.” - a truly astonishing trade that would not have been possible a few decades ago. (COVID and the future of air travel will have their impact, however.)
Increased quality and attention to detail in mass productions is indicative of the commoditisation of what used to be high value horticulture. Excellent production technology and management has allowed the Netherlands to be at the forefront of the commoditisation of high end crops, according to Dr. Hughes.
Next, Dr. Hughes points out that commoditisation requires a next step for two reasons. Firstly, the global export model is at risk. If prices are pressed too far down, the industry’s margins will turn out to be too thin to be resilient in the marketplace. Second, a greater interest in local food throughout Europe will mean that soon, consumers will expect and prefer to see more local produce available to them.
This will constrain Dutch export volume for commoditised horticultural produce. It is important to note, though, that the low value model may work a while longer, since trade patterns do not shift overnight.
Looking ahead in the next decade, Dr. Hughes believes the future of Dutch horticulture on the global stage lies in exporting not physical produce, but production technology instead. From every seed till every system, these products will ensure greenhouses operate with clockwork precision, leading to consistent crop yield and opportunity for quality management.
The Netherlands will turn out to be too expensive as a production centre. The returns of growers will diminish, pushing them out of business. As Dr. Hughes has it in mind, the future of Dutch horticulture lies in exports of hardware, software, artificial intelligence and management skills to markets close to consumers worldwide.
The best part of the interview is something you’ll need to watch: Dr. Hughes thinks Dutch agriculture can transform itself into a remotely operated, fully automated, and fully glocal production system. One could call it a post COVID multinational.
When talking about opportunities for Dutch greenhouse technology abroad, Veerman and Hughes discussed that concentrated horticulture in the Netherlands stems from historically successful regional agricultural practices. Today, over 90% of all horticulture produce in Holland is exported to areas across Europe and even to other continents.
Are those physical exports of tomatoes, cucumbers, and capsicum peppers a sustainable business model for the future?
Increased quality and attention to detail in mass productions is indicative of the commoditisation of what used to be high value horticultureThe Dutch model: how and why it works
Answering that question, Hughes first highlights the astonishing success of the Netherlands in food trade in general. That a “tiny little country the size of a postage stamp” is the number two food exporter in the world is an obvious sign of eminent logistics and success.
Hughes discusses the case of Dutch green peppers. Dutch capsicum peppers used to be “cream of the crop.” Producing a mass and only therefore relatively low value pepper with extremely good and consistent quality has allowed Dutch growers to compete with U.S. producers. The Dutch export them “air freighted in the belly of tourist airplanes to the U.S.” - a truly astonishing trade that would not have been possible a few decades ago. (COVID and the future of air travel will have their impact, however.)
Increased quality and attention to detail in mass productions is indicative of the commoditisation of what used to be high value horticulture. Excellent production technology and management has allowed the Netherlands to be at the forefront of the commoditisation of high end crops, according to Dr. Hughes.
Next, Dr. Hughes points out that commoditisation requires a next step for two reasons. Firstly, the global export model is at risk. If prices are pressed too far down, the industry’s margins will turn out to be too thin to be resilient in the marketplace. Second, a greater interest in local food throughout Europe will mean that soon, consumers will expect and prefer to see more local produce available to them.
This will constrain Dutch export volume for commoditised horticultural produce. It is important to note, though, that the low value model may work a while longer, since trade patterns do not shift overnight.
Dr. Hughes thinks Dutch agriculture can transform itself into a remotely operated, fully automated, and fully glocal production systemExporting Dutch horticulture technology
Looking ahead in the next decade, Dr. Hughes believes the future of Dutch horticulture on the global stage lies in exporting not physical produce, but production technology instead. From every seed till every system, these products will ensure greenhouses operate with clockwork precision, leading to consistent crop yield and opportunity for quality management.
The Netherlands will turn out to be too expensive as a production centre. The returns of growers will diminish, pushing them out of business. As Dr. Hughes has it in mind, the future of Dutch horticulture lies in exports of hardware, software, artificial intelligence and management skills to markets close to consumers worldwide.
The best part of the interview is something you’ll need to watch: Dr. Hughes thinks Dutch agriculture can transform itself into a remotely operated, fully automated, and fully glocal production system. One could call it a post COVID multinational.
Related
#8 Dick, they can program climate standards into the climate control for greenhouses, processing rooms, coolstorage. So coolers, heater, ventilation, humidification, irrigation CO2, O2, O3 can be (re-) programmed, parameters can be adjusted, and controlled.
Milkmachines can be serviced online at problems, also cow requirements can be changed, cow specific milking schedules can be changed.
The new flowersorting machines can be serviced online, also flower requirements (shape, size,weight, number of petals, ripenes, etc) can be adjusted from anywhere.
Martinus, could you please describe some examples of the way operations like that work from a distance or without someone interfering?
#6 Dick in area's where you work with water, sunlight, dust, dirt, manure, fertilisers, it will never be possible to do all remotely. but milking machines, flower and vegetable sorting machines, greenhouse logistic systems, climate control in greenhouses, processing rooms and storage is already serviced from Holland.
I know Martinus. But completely remotely operated?
#2 Dick, The Dutch are already building, managing, and operating greenhouses and operations in China, USA, Russia etc. Talk to Priva, Revaho, Bercomex, etc. Same as the Lely milking machines, etc etc.
We export seeds, cuttings, bulb's and tubers of our newest varieties, planted in Dutch greenhouses or outside, with Dutch/ German/ Belgian machines, and managed on the spot by Dutch immigrants or Dutch hired management and consultants.