True and fair price for sustainable products


True and fair price for sustainable products

CO2 emissions, biodiversity, soil fertility, water quality, fair pricing, animal welfare, health: there are many societal themes that require attention in the food chain. The research project Echte en eerlijke prijs (‘True and Fair Pricing’) will aid farmers and food producers in determining the true and fair price of sustainable products.

What is true and fair pricing?

True pricing gives a complete picture of the economic and sustainability costs of the production and consumption of food products. True pricing enables :

  • producers to produce as sustainably as possible
  • conscientious consumers to choose the right product
  • governments to stimulate the economy and sustainability transition in the best way

The transition towards a more sustainable production is not without additional costs and risks. This costs and risks must be taken into account in pricing. True pricing also provides sustainability benefits, for example when the consumer is prepared to pay more for sustainable products. The costs, benefits and risks must therefore be shared throughout the chain. Too often, however, the primary producers draw the short straw. With fair pricing, the costs, benefits and risks are shared equitably.

Towards a broadly supported methodology

The concepts of true pricing and fair pricing have been developed over the past six years. However, there is still no clear, widely supported methodology that is accepted by all parties in the sector, which is also publicly available.

Additionally, too little is known about the reaction of consumers. Does knowledge of true and fair pricing help consumers make better decisions when buying products? And if so, which information is most useful?

In this public-private partnership (PPP), together with the sector and consumers we are integrating insights into a comprehensive, broadly supported methodology that is publicly available. This will enable us to make the latest scientific insights immediately applicable.

What are the benefits?

  • partners receive direct support to make their products more sustainable,
  • knowledge about true and fair pricing, both from theory and practice (case studies), incorporated in a practical methodology to accelerate sustainability,
  • examples of the application of true and fair pricing of products, with communication strategies for parties in the chain and the general public.

Our partners:

This public-private partnership is of great importance because a new, fair and level playing field is needed to accelerate the sustainability transition of agriculture and food production. [...] Fair prices in the chain are an essential part of this, because without a fair price, quality will decline.
Bavo van den Idsert, director Bionext
This project is financially supported by the Dutch Topsector Agri & Food and the Topsector Horticulture & Starting Materials Within the Topsector Agri & Food, private industry, knowledge institutes and the government are working together on innovations for safe and healthy food for 9 billion people in a resilient world. Within the Topsector Topsector Horticulture & Starting Materials, private industry, knowledge institutes and the government are working together on innovations for sustainable production of safe and healthy food and the development of a healthy green environment.