Marketing beef from nature reserves in Holland

Geesje Kuit & Hielke van der Meulen

In the Netherlands, farmers and nature conservation organisations manage an important part of nature reserves with beef cattle. By 2015, further extensification of farm land use will create a total area of 315,000 ha of semi-natural grasslands, which can produce 120,000 head of cattle - "nature beef" - i.e. some 10% of the domestic beef slaughter.

Husbandry, beef quality and marketing systems show a broad diversity, arising from differences in the ecology of the reserves, breeds used, and supplementary feeding strategies. A surplus value of about 20% above the current wholesale prices is obtained by producers selling to organic butchers or direct marketing to consumers. The cost/benefit-ratio appears to favour direct selling. Niche-marketing is gaining importance through the rise of specialised retailers selling to quality butchers in urban areas and stylish restaurants.

In the present investigation, 10 case studies have been made at different stages in the production chain - producer, processor and market. The cases contain a variety of types of producers (individual farmers, groups of farmers, nature conservation organisations and also a consumers' group), regions, breeds and husbandry systems. Four systems of beef production systems can be distinguished:

1. year round grazing system in self-regulating nature reserves. Low stocking rate (10 to 30 ha per LU); free range management with such breeds as Heck-cattle, Galloway and Scottish Highland.
2. extensive seasonal grazing system on poor natural grassland. Stocking rate 0,75 LU per ha; suckling cow management with breeds as Limousin, Charolais, Blonde d'Aquitaine.
3. semi-extensive seasonal grazing system on richer natural grassland. Stocking rate 1 LU per ha; suckling cow management with French beef breeds and dual purpose breeds as Maas, Rijn and Yssel-vee (MRY), Blaarkop and Lakenvelder.
4. Seasonal grazing system integrated with arable farming for fattening. Stocking rates and breeds as mentioned under 2 and 3, roughage and concentrates for finishing from nature reserves and/or organic farming.
   

It is estimated that in the future, the proportions of meat produced from these systems will be 0.3, 21.3, 28.5 and 49.9%, respectively. At present, most beef (about 85%) is from system 2 and 3 (suckler cows).

Beef from nature reserves is considered to be a high quality product by producers, aware retailers and consumers, principally because of the superior taste and structure of the meat resulting from the production methods - slow growth rate, type of vegetation consumed, characteristics of the cattle (sex and breed) and meat processing (ageing). Extrinsic quality aspects are also important for consumers: the emotional value of "nature", known origin and reliable production process, contact with the producer, the price, the ease of stocking beef in the freezer, etc.

The origin and quality of the beef partly defines the marketing channel. For example, Heck-cattle are sold as aurochs to top restaurants in Paris; Limousin-cows from De Peel in beef-packages are sold directly to local consumers; and double-muscled cattle from Flevoland are supplied to artisan butchers in the region. A proportion of the cattle from nature reserves is sold to organic butchers. Selling whole carcasses to restaurants and butchers is generally difficult, because they are used to buying from wholesalers. An experiment has been set up by a large-scale slaughterhouse for production, processing and marketing of steers (castrated bulls) from nature reserves, aimed at low production costs and sufficient uniformity.

Differences in husbandry and meat quality of "nature beef" is a constraint for achieving the scale advantages of the conventional marketing channels. This diversity however, at the other hand gives the opportunity for quality-distinction (for example regional differences), which can be used as a marketing-tool. Further research will give more information about organoleptic differences. The benefit of direct selling to consumers is well understood by farmers, being confronted with extremely low wholesale prices. This practice is increasing and can be a promising marketing channel for large quantities of beef, when effectively promoted. Efficiencies of scale for the processing and marketing of labelled "nature beef" can be obtained by producer co-operatives, such as in an experimental arrangement between a group of 70 farmers in Waterline (North-Holland).

Dr Geesje Kuit & Dr Hielke van der Meulen
Department of Rural Sociology,
Agricultural University of Wageningen,
Hollandseweg 1
6706 KN Wageningen
The Netherlands

Tel: +31 317 483032
Fax: +31 317 483990
E-Mail: geesje.kuit@alg.swg.wau.nl / hielke.vandermeulen@alg.swg.wau.nl


Acknowledgement

This research was carried out with contributions from nature conservation organisations (Staatsbosbeheer, Vereniging Natuurmonumenten, Provinciale Landschappen), the agricultural organisation (Land en Tuinbouworganisatie Nederland), beef cattle breeders (Federatie Vleesveestamboeken Nederland) and the Dutch meat board (Productschap Vee en Vlees).

24th February 1997