The agricultural sector in The Netherlands
Economic importance of the Dutch agri-sector
The gross added value of the total agricultural complex in the Netherlands in 2005 was 41.9 thousand million euros. As a proportion of the national gross added value, the share of the agricultural complex was 9.4%. In 2005 Agriculture and the agriindustry accounted for 665,000 labour years.
The Dutch agri-complex can be divided into a sector processing domestic raw materials from primary agriculture, such as dairy products and meat, and a sector processing raw materials from abroad. In 2005, the former sector had a 5% share in the national economy. Its share for total employment in the Netherlands was almost 6% (see table), accounting for a total of 377,000 labour years, 46,000 less than in 2001. Its added value in 2005 amounted to almost 23 thousand million euros, 0.5 thousand million down on 2001. The table also reveals that growth in the added value of this segment is in decline and distribution in this sector is also under pressure.
In addition to the domestic raw materials used in primary agriculture and processing, raw materials also come from abroad. They include animal feed commodities, cereals for human consumption, oil seeds and products like cocoa, coffee and tea. The added value in this sector of the agri-complex rose between 2001 and 2005 from 14.8 thousand million to 15.7 thousand million euros. Employment in this sector fell by 21,000 labour years to 199,000.
The gross added value of the total agricultural complex in the Netherlands in 2005 was 41.9 thousand million euros. As a proportion of the national gross added value, the share of the agricultural complex was 9.4%. In 2005 Agriculture and the agriindustry accounted for 665,000 labour years.
The Dutch agri-complex can be divided into a sector processing domestic raw materials from primary agriculture, such as dairy products and meat, and a sector processing raw materials from abroad. In 2005, the former sector had a 5% share in the national economy. Its share for total employment in the Netherlands was almost 6% (see table), accounting for a total of 377,000 labour years, 46,000 less than in 2001. Its added value in 2005 amounted to almost 23 thousand million euros, 0.5 thousand million down on 2001. The table also reveals that growth in the added value of this segment is in decline and distribution in this sector is also under pressure.
In addition to the domestic raw materials used in primary agriculture and processing, raw materials also come from abroad. They include animal feed commodities, cereals for human consumption, oil seeds and products like cocoa, coffee and tea. The added value in this sector of the agri-complex rose between 2001 and 2005 from 14.8 thousand million to 15.7 thousand million euros. Employment in this sector fell by 21,000 labour years to 199,000.
Agricultural trade
The Dutch economy has a strong international orientation and the agricultural sector is no different.
In 2006, the Netherlands exported agricultural products with a value approximating 54.2 thousand million euros, which was equivalent to 17% of the total export value in that year. Most exports go to other Member States of the European Union. The Netherlands imported agricultural products amounting to 30.8 thousand million euros, or 11% of the value of total Dutch imports. The Netherlands is the second largest exporter of agricultural products in the world, after the US and followed by France. In 2005 Dutch exports of agricultural products amounted to USD 59.5 thousand million (US: USD 84.3 thousand million; France: USD 55.7 thousand million). The ten leading agricultural exporters accounted for a share of over half of total world exports. In 2005 the Netherlands had a 7% share in global agricultural exports, down slightly on 2004, but 3.5 percentage points higher than in 2000.
The Dutch economy has a strong international orientation and the agricultural sector is no different.
In 2006, the Netherlands exported agricultural products with a value approximating 54.2 thousand million euros, which was equivalent to 17% of the total export value in that year. Most exports go to other Member States of the European Union. The Netherlands imported agricultural products amounting to 30.8 thousand million euros, or 11% of the value of total Dutch imports. The Netherlands is the second largest exporter of agricultural products in the world, after the US and followed by France. In 2005 Dutch exports of agricultural products amounted to USD 59.5 thousand million (US: USD 84.3 thousand million; France: USD 55.7 thousand million). The ten leading agricultural exporters accounted for a share of over half of total world exports. In 2005 the Netherlands had a 7% share in global agricultural exports, down slightly on 2004, but 3.5 percentage points higher than in 2000.
Types of trade
The trade in agricultural products to and from the Netherlands is diverse. Ornamentals and plants make up the bulk of agricultural exports. In 2006, the value of these exports totalled 7.9 thousand million euros, which is almost 15% of the total agricultural product export value. Other major export products are meat and meat products (5.9 thousand million euros) and dairy products (4.4 thousand million euros). In addition to these exports, a substantial amount of agricultural products is imported into the Netherlands, mainly meat and dairy products.
The trade in agricultural products to and from the Netherlands is diverse. Ornamentals and plants make up the bulk of agricultural exports. In 2006, the value of these exports totalled 7.9 thousand million euros, which is almost 15% of the total agricultural product export value. Other major export products are meat and meat products (5.9 thousand million euros) and dairy products (4.4 thousand million euros). In addition to these exports, a substantial amount of agricultural products is imported into the Netherlands, mainly meat and dairy products.
Developments in agriculture and horticulture
The Dutch agriculture and horticulture sector entered a new phase in the last few decades of the twentieth century and is now characterised by expansion and increase in intensity and productivity. In 2006 the number of farms in the Netherlands amounted to 79,435. dairy farms made up the largest group, totalling 20,429, followed by farms with grazing stock, cows for slaughter, sheep and goats, which amounted to 18,369. The number of arable farms, producing mainly cereals, potatoes and sugar beets, was 12,163. There were 7,091 intensive livestock farms, i.e. farms with pigs or poultry. Some 14,480 businesses operated in the field vegetable and glasshouse sector. Finally, 6,903 businesses combined a number of branches of production.
Between 1990 and 2006 the number of farms has fallen by almost a third, which is mainly due to the decline in the number of small farms. However, the number of large farms has increased considerably. In 2006 the average intensive livestock farm was twice as large as in 1990, and the average broiler farm was three and a half times larger.
Some large farms have increased in size by such an extent that they are now classed as mega-farms. A typical mega-farm would have some 410 dairy cows 12,800 fattening pigs, 186,000 layers or 385 ha of arable land. Mega-farms are relatively common in glasshouse horticulture, as recent years have seen an enormous increase in the size of these businesses. The average size of these businesses has more then doubled between 1986 and 2006. Five percent have an area over 5 ha, and account for over one quarter of the total area for glasshouse horticulture. 10% of businesses in the glasshouse vegetable sector have an area of 5 ha or more, accounting for almost 40% of the total area for this sector. The Netherlands had almost 1,600 megafarms in 2006, representing 2% of the total amount of farms. In 2006 mega-farms accounted for 22% of total production capacity, compared to 17% in 2004.
The Dutch agriculture and horticulture sector entered a new phase in the last few decades of the twentieth century and is now characterised by expansion and increase in intensity and productivity. In 2006 the number of farms in the Netherlands amounted to 79,435. dairy farms made up the largest group, totalling 20,429, followed by farms with grazing stock, cows for slaughter, sheep and goats, which amounted to 18,369. The number of arable farms, producing mainly cereals, potatoes and sugar beets, was 12,163. There were 7,091 intensive livestock farms, i.e. farms with pigs or poultry. Some 14,480 businesses operated in the field vegetable and glasshouse sector. Finally, 6,903 businesses combined a number of branches of production.
Between 1990 and 2006 the number of farms has fallen by almost a third, which is mainly due to the decline in the number of small farms. However, the number of large farms has increased considerably. In 2006 the average intensive livestock farm was twice as large as in 1990, and the average broiler farm was three and a half times larger.Some large farms have increased in size by such an extent that they are now classed as mega-farms. A typical mega-farm would have some 410 dairy cows 12,800 fattening pigs, 186,000 layers or 385 ha of arable land. Mega-farms are relatively common in glasshouse horticulture, as recent years have seen an enormous increase in the size of these businesses. The average size of these businesses has more then doubled between 1986 and 2006. Five percent have an area over 5 ha, and account for over one quarter of the total area for glasshouse horticulture. 10% of businesses in the glasshouse vegetable sector have an area of 5 ha or more, accounting for almost 40% of the total area for this sector. The Netherlands had almost 1,600 megafarms in 2006, representing 2% of the total amount of farms. In 2006 mega-farms accounted for 22% of total production capacity, compared to 17% in 2004.
