Business as usual is not an option if Australia’s farm sector is to achieve its goals. And that’s where the Dutch come in.
Last week NSW Farm Writers heard from Consul-General of the Kingdom of the Netherlands Frank van Beuningen.
He showed how a land constrained nation like the Netherlands can squeeze value from its agriculture until the pips squeak with canny planning and cooperation to develop value-adding agricultural hubs.
In March PM Malcolm Turnbull swept into the Sydney Royal Easter Show to launch a “bold vision” for agriculture to double the value of farm gate output - aiming to hit $100 billion by 2030.
The Talking 2030 discussion paper is light on in plans for immediate action, but it does highlight one potentially game-changing initiative, a fresh food hub located next to the yet-to-be-built Western Sydney airport.
Mr van Beuningen came to Sydney to talk about how the Dutch do what he calls agro hubs, and he wowed the audience with one simple message that could take Australian ag at least part way on along its $100b journey.
An agri hub in the Netherlands is a collection of private and public companies housed around a regional production hotspot, for example potatoes or greenhouse horticulture, and includes adjacent research and supply chain facilities.
It wasn’t the fact that the Netherlands is the world’s second largest food exporter, with around one-tenth of NSW’s landmass, as impressive as that fact is.
What really really grabbed the attention of the room was his explanation of how government and research institutes can work together, and that Dutch private businesses have dropped their rivalry to work to a common goal.
“An agro hub needs to be centrally coordinated, since parties may have different views and outlooks and the role of government is crucial,” Mr van Beuningen said.
“By that I don't mean government should provide rent or subsidies… government needs to encourage research institutes to come up with new ideas.”
The Netherlands have several agro hubs like the Horti Centre west of Rotterdam, near to Europe’s biggest port and Schipol airport, with thousands of hectares under greenhouse production, surrounded by supply chain headquarters and University and other research institutions.
The Dutch are exporting their food and ag technology and even import fresh food through Rotterhdam to process, package and export value added products.
It could be a blueprint for a Western Sydney fresh food precinct. A report commissioned by NSW Farmers said it would create 12,000 jobs and drive new farming, packaging and processing techniques.
“Investment in R&D is one of the key elements to achieve high-value production… it’s crucial to integrate research institutes into the precinct,” Mr van Beuningen said.
“In Dutch policy industry sets agenda of R&D, Government does not, and I say does not, make its own proposals for the sector, but invites business and scientists to draw up action plans which serve as a base to develop complete lines of action.”
Twenty years before Australian ag’s $100b by 2030 rallying cry the Dutch made a national commitment to ‘twice as much food using half as many resources’.
Mr Van van Beuningen said the mix of science with a market driven approach generates innovative and commercially viable technology, but long term commitment and collaboration will be needed on a scale Australian agriculture has not seen before.
“No one party has all the answers. Western Sydney won’t be developed in one big step to become a fully-functioning agro hub. There’s a lot of steps in-between,” he said.
“Government needs to encourage research institutes to come up with new ideas. That’s its function in the Netherland and I hope for you that government can take a similar role here.”