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No subsidy despite labor saving in strawberry cultivation

The Dutch Minister of Agriculture views a high/low system for strawberry cultivation as not being an innovative labor replacement technique, referencing expertise from Wageningen University & Research (WUR). As a result, the Minister denied a request from a producer organization to modify their operational program for SIG&F. The producer organization's appeal against this decision was unsuccessful, as indicated by a ruling from the Trade and Industry Appeals Tribunal on June 3.

The Minister argues that statements from a Wageningen University & Research (WUR) employee do not prove that using the high/low system in strawberry cultivation, as opposed to fixed gutters, results in labor replacement or savings. Furthermore, the Minister contends that the high/low system does not qualify as an innovative technique, unlike more advanced options like harvesting robots or highly automated systems with specialized software that aids in planting and harvesting. While minor or simple changes in technique or software can lead to more efficient production resource use, they do not qualify as innovative techniques under the SIG&F scheme, according to the Minister.

18% labor savings
The producer organization points to the statement by the WUR employee and the practical experiences of a large strawberry grower using the high/low system. According to the organization, this system led to an 18% labor saving in the first growing season. Additionally, it resulted in increased production, which not only boosted turnover but also reduced gas consumption and attracted new customers. They argue that these benefits have improved the competitiveness of the producer organization.

No automation
The Trade and Industry Appeals Tribunal, in its ruling, stated that "The statements by the WUR employee pertain to potential labor savings from using the high/low system, not to the automation of cultivation. Therefore, they are not relevant to determining whether the technique qualifies as an innovative method for automating cultivation. This reasoning also applies to the claim by the horticultural auction that the high/low system resulted in an 18% labor saving and enhanced competitiveness. Improved competitiveness alone is not a criterion considered under Article 5.3.54, opening sentence and under a, of the Regulation."