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nrpages: 127 status: published

This paper investigates the developments in the Dutch Agri-Food innovation system. Main components of the system are agriculture and agribusiness, the promotion of interests in the lobby system and the knowledge system. Each has its own dynamics but they are until now tied together by institutional arrangements. Based on a historical description we formulate a simple business dynamics model. The robustness of the system is investigated by a scenario analysis. Results have been checked by interviews with experts.

The goal of this paper is to frame the effect of regulatory burdens in a research outline which enables the study of their effect on the competitiveness of the food and drinks industry, especially the European dairy sector. A firm perspective is used. We address the basic structure and tendencies in the food sector, the regulatory role of regulatory burdens and their effect on competitiveness. A theoretical foundation is provided by transaction cost economics and total quality management insights. The effects of legislation on administrative costs and competitiveness are mediated by impacts on innovativeness, company strategy, food safety system availability, as well as the available information & communication capabilities. Building on a previous studies showing the negative impact of administrative requirements on competitiveness, this paper focuses at expanding the available research framework and to adjust it to sector (i.e. dairy) specifics. We will connect to previous research (Wijnands et al., 2007) which, among others, generated the following generic results: - administrative burdens are connected to prevention measures; - administrative burdens impede on the innovativeness of food companies; - administrative burdens are influenced by the content of law and by the predictability and clearness of regulations.

To cope with globalisation and other changes in the industry, in the last 20 years the Dutch Ministry of Agriculture has reorganised its system for education, extension and research considerably. It moved away from the concept of a linear process of innovation to that of an agro-innovation system. This paper describes the main changes. The paper argues that an evaluation of the changes is problematic. In an open economy where a large part of the public investments are targeted to reduce negative externalities of production (especially on environmental impact), a part of productivity is due to persons leaving the sector and income in farming is dependent on value added processes in its multinational cooperatives, causes and effects are hard to disentangle. The changes in the education, extension and research system cannot easily be evaluated by productivity analyses. Most research on this topic tries to develop methods for monitoring and evaluation from social learning or public administration.

The goal of this paper is to assess the effect of regulatory burdens in the European dairy industry on its competitiveness. A theoretical foundation is provided by transaction cost economics and total quality management insights. The effects of legislation on administrative requirements and competitiveness are supposed to be mediated by impacts on innovativeness, company strategy, food safety system availability, as well as the available information & communication capabilities. We will connect to previous research (Wijnands et al., 2007) and the findings therein. Four sub-questions are addressed: • what is the relationship between administrative burdens, innovation and competitiveness? • what is the relationship between administrative burdens, food safety & quality system deployment and competitiveness? • what is the relationship between administrative burdens, food labelling requirements and competitiveness? • what is the relationship between administrative burdens, supply chain transparency and competitiveness? In addition to the theoretical framework presented earlier in Bremmers et al., 2008, this paper contains the first results of a survey in the European dairy industry. They are combined with the proceeds from a literature search. The results show that (Q1) especially product innovation is negatively impacted by administrative burdens. Food safety and quality systems (Q2) serve to provide a level playing field in Europe. They would be installed also if no legal requirements would enforce them, because clients ask for it, so that administrative burdens could easily be attributed to business strategy rather than legal obligations. To reduce administrative burdens, we advice to integrate food safety and quality requirements is necessary. It would reduce monitoring and reporting costs, both for private as well as public parties. Food labeling (Q3) (a ‘made in Europe’ origin marking) could work contraproductive with respect to the competitive position of dairy firms and will have an increase of administrative burdens as a net-effect. And last but not least (Q4), increased chain transparency (mentioning the name of intermediary producers on the end-product package) will accelerate administrative burdens, but will only be beneficial for SMEs with a differentiated product. Commodity-producers in the dairy industry which only follow a cost strategy will gradually merge and/or disappear.

Globalization is an important issue in the food industry, although most food is still locally produced and consumed. Many small and medium enterprises characterize the industry. Results of WTO negotiations intensify the international competition, in which the EU and USA are the largest players. Countries like Brazil, India and China are gaining market share. This raises the following research questions: 1. How competitive are the EU and US food industry and their sub-sectors? 2. Which role plays innovation and legislation in the competitiveness of the industry? 3. How will the competitiveness develop under future globalization and trade liberalization? The goal of this study is to fill these knowledge gaps.

Campylobacter infections are a serious public health problem in the Netherlands. As a part of the CARMA project, this study focus on the estimation of the potential direct costs related to the implementation of various intervention measures to control campylobacters in the chicken meat chain. Costs were estimated using a second-order stochastic simulation model. Treating only positively tested flocks is far cheaper than treating all flocks. The implementation of equipment to reduce faecal leakage would be the cheapest, while irradiation would be costliness. However, indirect costs for the various interventions, if occurring, would be far higher than the estimated direct costs.

There are differences in performance between farmers. In the Netherlands this has been a major topic of research for at least 30 years. Research has shown that the managerial capacities of farmers play a major role in differences in economic and environmental performance. Management can be measured and the optimal level is not the maximum level. Farmers differ in their objectives, competences and local external situation and there-fore their strategies. These strategies can be identified. In recent years strategic management has become more important and this can be supported with consultancy. Farmers also differ in their adoption and innovation behaviour. These micro-economic results, which correlate with large differences in income and high prices of fixed assets with a limited supply, can be explained as being consistent with economic theory on perfect markets. Although these findings suggest that some farm households have attractive strategies that can cope with policy adjustments, the research supports the hypothesis but does not (yet) prove that a severe adjustment of agricultural policy e.g. towards a more market oriented policy, induces more innovation, and that due to this innovation the effects of adjusting the agricultural policy are less severe than estimated ex ante with current dynamic policy models.

The assessment of agricultural policies depends more and more on micro-economic data sets. This is especially true for policies with an income objective in a situation where farm households have different income sources. Among others the OECD has stressed this point in recent years with analytical reports. The PACIOLI network yearly brings together data managers and researchers interested in the innovation of data collection in this area. In April 2004 a joint workshop was organised at the OECD in Paris to bring experts together to exchange best practices. This report contains the proceedings of that workshop.

The Pacioli network explores the needs for and feasibility of innovation in farm accounting and its consequences for data gathering for policy analysis in Farm Accountancy Data Networks (FADNs). PACIOLI-11 was held in Przysick (Poland), in October 2003. This workshop report presents the papers. In the 11th Pacioli workshop special attention was given to a number household income issues, using micro data. Other topics include the CAP-Mid Term Review, farm specialisation, software development, and productivity analysis. In addition results of the workgroup sessions are reported.

The Pacioli network explores the needs for and feasibility of innovation in farm accounting and its consequences for data gathering for policy analysis in Farm Accountancy Data Networks (FADNs). PACIOLI 10 was held in Motta di Livenza, near Venice, Italy, in December 2002. This workshop report presents the papers. In the 10th Pacioli workshop special attention was given to a number environmental topics, using micro data. Other topics include policy models, farm safety nets, corporate social responsibility, software development, representativity in data networks and farm auditing. In addition results of the workgroup sessions on the creation of a thematic network are reported.

This paper provides some information on the experiences in the Netherlands with obtaining micro economic data on household incomes in agriculture. To understand the situation in the Netherlands, the next section gives some background on agriculture and policy making in the Netherlands. This explains the role that the FADN plays, and why it is an attractive tool for the gathering of income data. Section 3 provides some information on the technical issues of the FADN. In the last section we draw some conclusions.