Strategic Resources May 2024 Corporate Presentation
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TCI 2015 Mixing the Worlds of Clustering and Agrifood, Experiences from the Netherlands
1. Mixing the Worlds of Clustering and Agrifood,
Experiences from the Netherlands
Frank Eetgerink
Blue River Concepts
The Netherlands
Parallel Session 3.2: Clusters Promoting Cooperation and Effective Convergence between Industries
2. Collaboration in agrifood
Historical roots
โข Often very old resilient traditions, conservative
โข Hardened by dependency on unpredictable
external conditions (weather, diseases, war, etc.)
โข From local community collaboration to
cooperatives and large farms
โข Strong individual / family entrepreneurship
4. Simplified Value Chain
Raw materials Agriculture
Food
processing
Retail Consumer
Logistics
Trade
Innovation
5. Modern agrifood
Competitive market driven entrepreneurship
โข Up scaling, intensification, industrialization
โข Long and complex (global) value chains
โข Global markets
โข Innovation driven (IT, Robotics, Gene Tech, light)
โข From farmer to industrial entrepreneur
6. Vertical integration in chains
Example: Broiler Chain
Primary
Production
Raw
Materials
Primary
Processing
Secondary
Processing
Trade &
Logistics
Retail
Breeding
Egg
Production
Broilers
Slaughtering
Trade &
Logistics
Retail
Mother
Animals
Genetics
CornandSoy
Production
Raw
Materials
Concentrates
Production
Processing
7. Horizontal integration between chains
Primary
Production
Raw
Materials
Primary
Processing
Secondary
Processing
Trade &
Logistics
Retail
Trade &
Logistics
Retail
Primary
Production
Raw
Materials
Primary
Processing
Secondary
Processing
Primary
Production
Raw
Materials
Primary
Processing
Secondary
Processing
Primary
Processing
Secondary
Processing
8. Future Agriculture: from chain production
towards Food Clusters (Agropark)
Raw
Materials
Processing
Raw
Materials
Processing
Raw
Materials
Processing
Food Clusters
9. Clusters & Agrifood
โข Agrifood is changing into modern industrial
business, process industry
โข Different roots/background
โข Special: spatial and environmental constraints
โข Quadruple helix essential โ license to produce
โข Different but similar collaboration systems
10. Case Almelo, NL
โข Problem owner/client: local government
โข Challenge: turn unsalable land into profitable rural
development
โข Goal: economic growth and employment and
compensation for financial losses
Process starts with concept design and stakeholder
involvement
11. Verkenning Transitiestrategie Noordflank Almelo
27 juni 2013 9|ยฉ Twynstra Gudde |
Agriculture: urban farming Agriculture: intensive livestock farming
Care: care farmTourism: theme park
Energy farming
Education: institute
Nature: village estate
Agropark: Rondeel eggs
Most suitable option
Chosen option
12. Learning points
โข No entrepreneurs were willing to take the risks
โข Threat for more traditional farmers and local people
โข No consortium was organized to deliver the
business case
โข Collaboration on closing loops and resource use
efficiency was needed, complex task, too early
โข Clustering could have been a solution
(Now: discussion re-emerges)
14. Umbrella organization for 5 clusters
โข Mushroom Cluster
โข Avenue Trees Cluster
โข Fruit Cluster
โข Horticulture Bommelerwaard
โข Horticulture Arnhem-Nijmegen
Greenport Gelderland
15. Good practice
โข Mature triple helix, 10th anniversary
โข Entrepreneurs strongly involved, project oriented
โข Umbrella organization facilitates clusters, interface
for government
โข Every cluster a cluster manager, pact facilitator
โข Every cluster is different in goals, ambitions; locally
grounded, regionally funded
โข Inspired by mature cluster organization Food Valley
16. Final remarks
โข From farmers to normal industrial entrepreneurs
โข Collaboration evolved from individual entrepreneur
into cooperatives and now into clusters
โข Modern agrifood businesses can learn from
clusters: โnormalโ clusters
โข Cluster manager, common agenda, trust building,
shared vision and goals, branding, managing
external relations
โข Spatial element and license to produce differ
17. Join the discussions:
TCI Working Group
Metropolitan Food Clusters
https://www.linkedin.com/grp/home?gid=8197201
Frank Eetgerink
frank@eetgerink.com / +31 6 5342 0839
Coming from small communities and hierarchical feudal traditions, farmers were not used to, neither did they need to collaborate.
Subsistence farming was the dominant figure.
Because of tough conditions like bad weather, plagues of diseases, war, farmers were kept in their place.
To survive you needed a kind of tough entrepreneurship, tied to the family and to tenancy (land leasing)
From subsistence farming or self sufficient farming, on local or regional scale
To production for the local market to create extra income
To production for national and international market(s)
Growth in scale
Value chain evolution
From preferred supplier, with more specialization, more trade and logistics, extra steps in processing
To orchestration form the market, from trade and retail
Simplified the value chain looks like this
Soy beans grown in South America, exported to Netherlands, mixed with corn from US in feed for pigs, raised and processed in Netherlands, hams exported to Italy, turned into Parma Ham, then exported worldwide.
Other parts go into other complex value chains. See e.g.. TED talk of Christie Meindertsma Pig 05059
If your trace back the origins of every ingredient of a simple pizza, it will at least as complex, in terms of value chains as a computer.
GIS usage, satellite imaging
Self driving tractors
Automated feeding and stable systems etc.
Closed glasshouse systems, totally controlled and automated.
Natural light is not good enough anymore: artificial lighting can be optimally tuned to the need of plants
Farming is high tech business nowadays
From specialization in the value chain to integration of two or more steps in the chain
But it is not only a linear chain, but much more complex.
Side resources, products and services are delivered to the main stream of value creation
For example, concentrates production in poultry raising for meat production, but also machinery and equipment.
But there is also a very important spatial element in these processes.
This spatial clustering is like the proximity discussion in clusters.
Collaboration creates agroparks, where the use of resources is optimized to prevent waste, circlular ssytems, closed loops
No or little waste.
Shared facilities, like energy systems, waste water treatment, manure digestion.
Combining pig raising, with mushroom growing, with horticulture with aquaponics (fish, algae)
Or in combination with existing industries with valuable waste streams.
Heat, cellulose, fertilizer
Old peat excavation area, low value agriculture soils
Between two small cities
Designated for a large house building project, but unsellable because of the economic crisis
Importance Greenport Gelderland
1600 (horticulture) businesses
7.600 ha acreage
Ca. 800 miljoen euro added value per year
Employment more than 20.000 jobs
10% of the Dutch horticulture
Horticulture in Gelderland grows faster than in the total of Holland
Horticulture is one of the most powerful economic clusters in the province of Gelderland
Farmers are becoming normal entrepreneurs and can be engaged in a similar way
Collaboration in agrifood changed overtime from individual entrepreneurs via cooperations (Banking systems, slaughter houses, milk processing etc)
Into agroparks and clusters. They only need to be told
Economic development and agriculture are different governmental cyloโs
Few bridges between the cycloโs
Perception of sectors differs a lot