Dutch agriculture and horticulture with a glance at South Korea Policies and results in the past, present and future Piet Rijk Ernst Bos April 2009 Report 2009ĉ039 Project code 21011 LEI Wageningen UR, The Hague LEI conducts research in the following areas: International policy Development issues Consumers and supply chains Sectors and enterprises Environment, nature and landscape Rural economy and use of space This report is part of the research area International policy. Foto's: Shutterstock 2 Dutch agriculture and horticulture with a glance at South Korea; Policies and results in the past, present and future Rijk, P.J. en E.J. Bos Report 2008ĉ019 ISBN/EAN 978ĉ90ĉ8615ĉ31ĉ83 Price € 26,75 142 p., fig,. tab., bijl. This report provides insight into the present differences and common matters between South Korea and the Netherlands. More specific items are the develĉ opments of the Dutch agriculture and horticulture in past, present and future. Insights has been given in the stimulating circumstances in the strong internaĉ tional position of the Dutch agriculture and horticulture. Too, the developments in the policy of the European Union and the Dutch Government, the total agriĉ business and the rural area has been a part of this study. In the report also inĉ cluded a list of addresses of the most important bodies, institutions and enterprises around the agriculture and horticulture. Dit rapport geeft inzicht in de huidige verschillen en overeenkomsten tussen ZuidĉKorea en Nederland. Meer specifiek is ingegaan op de ontwikkelingen van de Nederlandse landĉ en tuinbouw in verleden, heden en toekomst en wat de voorwaarden zijn geweest voor de sterke internationale positie van de Nederĉ landse landĉ en tuinbouw. Ook de ontwikkelingen in het beleid van de Europese Unie en de Nederlandse Overheid, het gehele agroĉcomplex en het landelijk gebied zijn in deze studie beschouwd. In het rapport is ook een bijlage opgenoĉ men met adressen van de meest belangrijke instanties, instituties en bedrijven rondom de landĉ en tuinbouwsector. Orders 31.70.3358330 [email protected] © LEI, 2009 Reproduction of contents, either whole or in part, permitted with due reference to the source. LEI is ISO 9000 certified. 3 Contents Preface 6 Summary 8 1 Impression of the Netherlands 13 2 Differences between the Netherlands and the Republic of Korea 15 2.1 Present situation in the two countries 15 2.2 Developments 16 3 History and condition of the agricultural and rural area 21 3.1 Short history of agriculture within the Netherlands 21 3.2 Present situation of the Dutch agriculture 23 3.3 The Dutch agricultural complex 34 4 The success of the Dutch agriculture and horticulture 36 5 Agricultural policies in the past and the lessons from them 42 5.1 Period 1843ĉ1957 42 5.2 The founding of the European Union 46 5.3 The Dutch agricultural policy (1957ĉ2007) 52 6 How policy is formulated and implemented in the Netherlands 59 7 Current policies: environmental agricultural and rural policy 62 7.1 Environmental policy 62 7.2 Rural policy 71 8 Current policies: agricultural research and development policy 87 8.1 General research system 87 8.2 Locations of the Research Institutes and Experimental Stations 90 8.3 Research Institutes and Experimental Stations 91 8.4 Planning Offices and other Research Institutes 95 4 9 Budget of the Ministry of Agriculture, Nature and Food Quality and payments coming from the European Union 98 9.1 Budget of the Ministry of Agriculture, Nature and Food Quality 98 9.2 Payments from the European Union 99 10 Challenges ahead and the solution 101 10.1 The future policy of the European Union 101 10.2 The developments on the world market for agriculture and horticultural products 102 10.3 The policy of the Dutch Government with a focus on agriculture, horticulture and rural areas 103 10.4 Ongoing processes in the agriculture, horticulture and agribusiness 108 Literature 109 Appendices 1 List of addresses of the most important Research Institutes, Authorities and Organisations that are involved 112 2 An example of changing policy concerns the removal of the trade barrier in the past; with a special focus on wheat 139 3 Nature is important to the Dutch and their economy 141 5 Preface The Korean Rural Economic Institute (KREI), located in Seoul, South Korea, is currently conducting research 'An approach to Advanced Agricultural Policy toĉ ward the Open Economy: The Structural Changes in Korean Agriculture and Evaluation of the Agricultural Policies.' As a part of the research process, KREI has made a request to selected overseas experts to write a report 'Change in Agricultural Policy and Challenges ahead.' KREI has asked the Agricultural Ecoĉ nomics Institute LEI (Landbouw Economisch Instituut) to provide a picture of this for the Netherlands. The idea behind this is to enable lessons to be learned from the experience of the Dutch in the past and present. KREI is interested in the experiences and knowledge in terms of agricultural policy innovation in changing conditions. They also wish to learn more about the current and future problems in agriculture and how policies should be prepared in order to resolve these problems. KREI is also interested in how the system functions as a whole and how this involves agriculture, horticulture and the institutions affiliated with them. They also wish to know the addresses of these institutions. The Agricultural Counselĉ lor of the Dutch Embassy of the Netherlands in Seoul is also interested in these issues and is involved with this study. The contact authority for this study for KREI was: Mr Hogun Chong. The contact authority for this study for the Dutch Embassy in Seoul was: until 1 January 2008: Mr Jaques Damen and, after 1 January 2008: Mr Jean Rummenie. We would like to thank them for their comĉ mitment and compliments about this study. This study provides an insight into the history, present and future developĉ ments in Dutch agriculture and horticulture. The study starts by providing a short overview of various information from the Netherlands. Subsequently, the differences between the Netherlands and the Republic of Korea will be outlined. The next chapter provides an overview of the recent history and present situaĉ tion of the agricultural and rural areas. Chapter 4 provides an overview of the various success factors of Dutch agĉ riculture and horticulture. The chapters thereafter outline the history and present condition of the agricultural and rural areas, and how policy is formulated and implemented in The Netherlands. The agricultural, environmental and rural poliĉ cies of the past, present and future are also provided. Chapter 8 focuses parĉ ticularly on the Dutch agricultural research system. Chapter 9 provides an 6 insight into the budgets allocated by the Ministry of Agriculture, Nature and Food Quality. The final chapter provides an overview of the most recent and future developments concerning the rural areas and agribusiness. Upon special request, appendix 1 provides the addresses of the most imĉ portant Research Institutes, Authorities and Organisations that are involved in the research. The meeting concerning the draft report, plus discussions was held on Tuesday 3 June 2008 at KREI in Seoul. The researchers of KREI that were involved are: Mr ChangĉGil Kim Ph.D., Mr Hogun Chong (contact authority), Mr Joonkee Park Ph.D., Mr SangĉJin Ma Ph.D., Mr SeongĉJae Park Ph.D., and Mr Yongwon Cho. Mr Jean Rummenie, Counsellor of the Dutch Embassy, was also involved in the discussions. After these discussions, a meeting was held with the President of KREI, Mr JungĉSup Choi Ph.D. On this same date, a lecture was given for researchers at the Institute. After the meeting concerning the draft report, a lot of questions remained. Mr Hogun Chong has distributed many questions and remarks. Following the meeting concerning the draft report, we will attempt to include all the remarks made during the aforementioned meeting, plus questions answered by eĉmail in the final report. This may not create an equal balance in the report, but we beĉ lieve that it will still be useful to include most of the answers. We also created two new chapters following the meeting concerning the draft report: - chapter 6: How policy is formulated and implemented in The Netherlands; - chapter 9: Budget of the Ministry of Agriculture, Nature and Food Quality. We hope that the report will give a good impression of Dutch agriculture, horticulture, rural areas, affiliated agribusiness and authorities. The report also provides an insight into past, present and future developments. We also hope that the report can help to reform Korean agriculture and horĉ ticulture in a way that results in good prosperity for the Korean society as a whole. Prof Dr R.B.M. Huirne Director General LEI Wageningen UR 7 Summary At the request of the Korean Rural Economic Institute (KREI), located in Seoul, South Korea, LEI has drawn up this report. This report starts with the main difĉ ferences between the Netherlands and South Korea, including many of the isĉ sues concerning and surrounding agriculture and horticulture in The Netherlands in the past, present and future. KREI wishes to learn more about the Dutch agricultural system in order to be able to relate and compare this to their own agricultural system. Differences between the Netherlands and the Republic of Korea The total population (48m) and the total surface of land of South Korea is apĉ proximately three times more than the Netherlands. The density (486 inhabiĉ tants per km²) is therefore approximately the same. The surface of the agriĉ cultural land in Southĉ Korea is only 20% of the total area. In the Netherlands, is this much more (58%). In South Korea, almost all the land used for agriculture is arable or horticulture (87%) or permanent crops (10%).