The Netherlands risks losing its position as a global leader in agri-food innovation unless it addresses regulatory and financing barriers that are driving companies to commercialise overseas, according to a new report from Invest-NL.
It argues that Europe is effectively causing innovative biological crop protection companies to launch products in markets such as Brazil and the United States before bringing them to Europe, because regulatory approvals can take between eight and 10 years.
Regulatory delays risk pushing innovation overseas
According to Invest-NL, the current regulatory framework was largely designed for chemical crop protection products and does not always adequately reflect the characteristics of biological alternatives. As a result, companies are increasingly looking abroad for faster routes to market.
The warning comes despite the Netherlands possessing world-leading expertise in areas including biological crop protection, climate-resilient crops and fermentation-derived food ingredients.
Invest-NL estimates Dutch agri-food biotech companies could generate an additional €17bn in annual revenue by 2040 if products can be commercialised and scaled more quickly.
Companies point to real-world consequences
Two Dutch companies cited by Invest-NL illustrate the challenge.
Eindhoven-based VitalFluid has developed a technology for controlling fungal diseases without pesticides and has already begun commercial deployment with strawberry growers in the UK.
“Dutch farmers want it too, but we don’t yet have approval from Brussels to bring it to market,” said CEO Erik Hertel.
Because the UK is no longer subject to EU approval procedures, VitalFluid has been able to generate revenue there and raise €17m in funding. According to Invest-NL, only around €2m of that investment is being deployed in the Netherlands, with much of the company’s expansion focused on the UK and US markets.
Food-tech company Vivici faces a similar situation. The precision-fermentation specialist has started selling its proteins in the US while continuing to await European approval.
“In the US, the approval procedure takes a year at most. In Europe, the legal minimum is 17 months, but I don’t know anyone who got their product to market within three years,” said CTO Marcel Wubbolts.
Vivici is manufacturing at scale in India, where roughly a quarter of the €32.5m it raised in 2025 is being invested.
“That money could have stayed in the Netherlands if there was a factory like that here,” Wubbolts said.
More than regulation at stake
Invest-NL argues the issue extends beyond regulation. Companies developing fermentation-derived ingredients face significant difficulties financing first commercial production facilities, which can cost tens or even hundreds of millions of euros.
The organisation is calling for faster, more appropriate regulatory pathways for biological products, greater access to testing facilities and increased public support to help de-risk first-of-a-kind manufacturing plants.
“The Netherlands is well positioned to lead in agri-food biotech, but this opportunity will not wait,” said Jellie Banga, chief business officer at Invest-NL.
The report notes that the global biological crop protection market is expected to grow seven- to tenfold by 2040. Without action, Invest-NL warns, the Netherlands could see investment, talent and strategically important parts of the agri-food value chain migrate elsewhere.
