FARM ADVISORY from STATE
SERVICE to PRIVATE
BUSINESS
THE DUTCH CASE
NICO DE GROOT
TAIEX Workshop 25.02.2016
Introduction Nico de Groot
• Graduate Wageningen University.
• Working 23 years in international
horticultural projects.
• Working in Ukraine since 1999.
• Working at Delphy 7 years.
.
Introduction Nico de Groot
• Ukraine Fruit 2000: 1999-2001. Vinnitsya.
• Tacis project Improvement of logistic
services and marketing channels for SMEs
in agriculture 2005-2006. Chernivtsi, Rivne.
Kharkiv.
• EU project to support the start up of local
fruit and berry production. Volodymyrets,
Rivne.
.
Netherlands & Agriculture
.
Agriculture & Netherlands
.
Agriculture & Netherlands
.
Horticulture & Netherlands
• High Productivity.
• Specialized production.
.
• Capital & Knowledge Intensive.
• Logistic Hub (Auctions).
• Strong in propagation materials:
seed potatoes, vegetable seeds,
fruit plants, cuttings (NAK).
Delphy
Service Company selling Knowledge &
Information on every aspect of arable&
horticultural production.
Help clients to solve problems.
Help clients to prevent problems to arise.
Delphy Mission Statement
To support clients with knowledge
and information to realize their
strategic goals:
• High productivity.
• Efficient use of inputs.
• Maximum profit.
Delphy Core business
• Crop Advice.
• Training.
• Practical Research.
• Develop Horticultural Investment Projects.
Delphy Unique Selling Points
• Specialized knowledge on any crop.
• Oriented on grower/practice.
• Advisors with roots in sector/ production.
• Independent.
• Strong link between research/ innovation and
application on farm.
.
Delphy Key Data
•
•
•
•
•
•
•
Turn over:> 20 million €.
Over 9.000 clients.
> 200 experts.
Private company/owned by management.
Farmers/growers are main clients.
Based in Netherlands, operating worldwide.
Represented in UK, Denmark, Belgium,
Poland, Russia, China, Japan, Spain, ,
Turkey, Ethiopia, Kenya and South Africa.
Delphy International Offices
UK
Spain
Costa Rica
Russia
Poland
Turkey
Ethiopia
Kenya
South Africa
Japan
China
Delphy Products
• Crop Specific Advice (on spot or distance).
• Crop protection plans, fertilization plans,
irrigation/fertigation schemes, spraying/crop
protection schedules.
• Business plans/investment plans/feasibility
studies.
• Investment projects support.
Delphy Products
• Training & Instruction (e.g. pruning,
storage).
• Organization of study trips, field days,
seminars.
• (On farm) research projects.
.
Delphy History
• Roots in 1880’s.
• Crisis: government intervention: support
to education, training, research and farm
advisory services.
• Department within Ministry of Agriculture:
DLV
• Policy instrument: increase of production,
modernization & specialization.
Features state advisory service
• Services free of charge.
• Focus on group activities and
demonstrations: information provision to
groups of farmers.
• Strong link with government paid research
and applied research.
• Linked to other government instruments
like investment subsidies, land reclamation
projects, land consolidation.
Dutch agri-knowledge structure
< 1995
Fundamental research
funded
by
government
Applied research
Extension
free service
Farmers
18/5
organised
exchange
of
information
Delphy History
• 70’s-80’s: change in policy: over production
in EU, problems with pollution (water,
pesticides), loss of bio-diversity, protests of
citizens, more attention to environment,
growing attention for quality-not quantity.
• Economic problems: budget cuts.
• Privatization process started in 1990: less
government, more sector.
• Shift from free advice to paid advice.
Privatization process
Privatization in 3 steps:
1. From government department to
independent company 100% owned by
state (1993).
2. Sales of shares to
management/private companies (19982000).
3. Management buy-out: current
management bought remaining shares
from state (2005).
Dutch agri-knowledge structure
> 1995
Fundamental research
knowledge=money
no free services
Applied research
Extension
Farmer groups / individual farmers
21/5
After privatization
• Introduction of paid services.
• Shift to bilateral advise: face to face.
• Same fields of advice but more attention for:
• Farm economics.
• Farm strategy and – development.
• Individual targets for advisors
100-120 k€/year.
• Advisors responsible for acquisition of clients.
22/5
Delphy History
• Since 2005 independent private advisory
company.
• Separation of plant & animal section.
• Since 2005 internationalization: UK,
Denmark, Belgium, Russia, Spain; more
recently Poland, China, Japan, Kenya,
South Africa.
• Since January 2016: Delphy.
Delphy regional offices
Assen
Hillegom
West Maas
Dronten
Hazerswoude
Wageningen: head quarters
Bleiswijk
Horst
Delphy business model
starting points
• Farmer = Client = King.
• Knowledge is our resource
• Advisor is entrepreneur: own acquisition,
own clients, own target.
• Delphy facilitates the work of advisor.
Delphy business model
• Organized in teams.
• Team managed by teamleader combining
management with consultancy.
• Decentralized; operating from regional
offices.
• Team are profit centre: place where money
is being earned.
- Small central office with support staff
(bookkeeping, HR, ICT).
- Virtual organisation (all flexworkers).
Delphy business model
• Each advisor has personal turnover
target; each team has a team target.
• Each advisor has own clients/projects:
20-40 customers per advisor.
• Advice on basis on annual contract (4,
10, 25 visits per year/growing season+
support by phone, e-mail, sms); tailor
made to needs of client.
• Incidental/occasional visits (payment per
hour/day).
Delphy business model
• In-company training:
- technical skills
- economic skills
- business skills
• Mentorship.
Profile Advisor
• Agri-horticultural background.
• Bsc/Msc.
• Critical.
• Independent.
Delphy Knowledge Development
• Research team of 10 specialists
• Practical research: topics effectiveness of new
fertilizers, control of new pests & diseases,
testing of machinery, comparing of varieties.
• Initiated on basis of questions of growers.
• Or on demand of input suppliers.
• Foster innovation in plant production.
• Linkage to Wageningen University.
Govern
ment
Private
/sector
Projects
Commer
cial
100%
0
-
-
1995
50%
50%
50%
50%
2005
20%
80%
30%
70%
2015
10%
90%
20%
80%
< 1990
Projects
• Government, MoA.
• Provinces.
• Waterboards.
• EU (Horizon 2020).
• Applied research.
In cooperation with WUR, farmer organizations,
farmer groups, agri-business.
33/5
Lessons learnt
• Privatization takes time.
• Take step from free to paid services in 1 time.
• Growers are willing to pay if you provide
added value.
• Asking money for services requires different
mind set.
Lessons learnt
• Be careful with subsidies.
• Balance between team & individual advisor.
• Added value of company for advisor.
• Linkage with research and education.
Challenges
• Knowledge recovery.
• Innovation.
• Internationalisation.
• ICT applications/apps.
• Support Desk: 24/7 service provision.
• Cooperation with commercial
partners/input suppliers.
36/5
Trends in agriculture
• Scale of production increase/decline of farmers
• PC/Internet based Decision Support Systems
• GEWIS: crop protection based on weather data
• Fungal diseases: forecast models
• MLHD in weed control: low dosage herbicide spraying tool
• Precision agriculture through GPS
• Spraying systems
• Fertiliser applications
• Robots
• Harvesting apples
• Sustainable production: less pesticides,
attention to bio-diversity
37/5
Irrigation planner: setup
• Providing advice about:
• Irrigation yes / no
• Moment to start irrigation
• Amount of water to irrigate
• Gives overview
• Situation of irrigation on the farm
• Ranking of fields to irrigate
• Per field
• Ready to use in arable crops and
vegetables
Trends in agribusiness
• Population growth.
• Globalisation.
• Concentration of buying power in large retail
chains.
• Margins farmers decrease.
• Demand for tracing and tracking of produce,
product certification (Global Gap, Organic).
• Organic farming, local-4-local.
• Climate change.
39/5
Market development in vegetables
Market channel
1980
1990
Supermarket
59%
67%
78%
85%
Greengrocer
28%
22%
14%
8%
Market place
10%
9%
7%
5%
3%
2%
1%
2%
Grower
40/5
2000 2010
Dephy advisor in the future
• Changing role: from advisor to sparring
/information partner.
• High education: more Msc, foreign languages.
• Increased use of online tools.
• More international orientation/clients.
41/5
Dephy in Ukraine
• Active acquisition since 2013.
• On-hold due to economic crisis.
• Interest to partner in (EU) projects.
• Delphy Ukraine?
42/5
THANK YOU for the ATTENTION
Nico de Groot
0031 6 51073548
[email protected]