Margins on organic products need to be reduced to those of conventionally produced vegetables, fruits, and meat, according to organic farmers' organization Biohuis. This position is also supported by market watchdog ACM. In a recent letter to Agriculture Minister Piet Adema, the ACM stated that VAT on organic products could be lowered or removed.
The Netherlands is lagging behind in organic farming in Europe, with only 4.4% of all agricultural businesses using sustainable cultivation methods. Austria has already met the 25% target, helped by supermarkets that promote and offer organic products at affordable prices.
Currently, the margins are far too large, says Biohuis spokesperson Jaap Korteweg. “At Albert Heijn, a kilo of regular carrots costs €1.19, but a kilo of organic carrots costs €1.99. It costs an organic farmer 35 cents to grow them compared to 20 cents for a conventional farmer. That’s only a 15 cent difference,” Korteweg told Algemeen Dagblad.
Promotion
To offset the initial loss, supermarkets could increase the margin on unhealthy and non-sustainable products, he said. In response, Albert Heijn stated it already promotes organic products, while supermarket chain Plus said its dairy products are 100% organic. Aldi told the newspaper it does not plan to change the margins on its organic products.