Food chain collaborates to measure true value of food

The current food system focuses too much on low prices. Farmers who work more sustainably often have higher costs that are not always reflected in the price. This makes sustainable farming financially difficult. The True Value Model means that the effects on nature, climate, health and animal welfare are included in the price of food. This rewards sustainability and enables farmers and growers to produce more sustainably.

To make food production more sustainable, it is necessary to invest in different working methods. This requires all parties to participate: farmers, supermarkets, the government and other parties. However, there is a lot of fragmentation. Each organization measures sustainability in its own way. This makes it unclear and inefficient.

At the same time, pressure is increasing to work more sustainably in agriculture. This is due to challenges such as nitrogen, climate, water quality and biodiversity. New European regulations are making it increasingly important for information to be measured in the same way.

For the True Value Model (Dutch only) to succeed, it is important that all parties in the food chain speak the same language to measure and compare sustainability. This is called the True Value Language.

True Value Language focuses on three key points:

1. Measuring sustainability results of farmers and growers in a uniform way.
2. Valuing and rewarding sustainable performance in the food chain, so that farmers who work sustainably also benefit financially.
3. Reporting and monitoring information in a clear and uniform way, so everyone can see the real impact of how food is produced.

Rabobank started the initiative and brought parties together. Government and businesses are now working together. Rabobank, FrieslandCampina, Jumbo Supermarkten, LTO Nederland, Wageningen University & Research and many other parties are participating. The Ministry of Agriculture also supports the initiative.

Alex Datema, Director Food & Agri at Rabobank: “Currently, the focus is mainly on price. But sustainable farming often increases costs. With True Value Language, it becomes clear how sustainably an entrepreneur works and what can be improved. If that improvement is rewarded, it becomes more attractive to do so.”

The idea is that the hidden value of sustainable production is reflected in the price. Think of clean water, preservation of landscape and biodiversity. The costs of non-sustainable production must also become more visible. The goal is that sustainably produced food will eventually become cheaper than non-sustainably produced food.

True Value Language was a Rabobank initiative. But with financial support from Rabobank, it has now become a broad value chain approach in which collaboration and shared goals are at its core. In the coming months, the participating parties will take the next steps together. They are working towards a future-proof and sustainable food system in which sustainability and economics go hand in hand.