The Netherlands’ long-standing reputation as a European centre for agricultural and food innovation is facing growing pressure, according to a new report from national investment institution Invest-NL. The study warns that other countries are moving faster to commercialise emerging agricultural technologies, putting the Dutch competitive position at risk.
Invest-NL’s report, Deep Dive Agrifood Biotech, estimates that addressing barriers affecting Dutch agrifood biotechnology companies could unlock approximately €17 billion in additional annual revenue by 2040. Without coordinated improvements in regulation, funding and commercialisation, the report says much of that opportunity could be captured by competitors.
The analysis is based on interviews with more than 150 entrepreneurs, investors, researchers and policymakers, as well as investment data covering 2010 through April 2026. It focuses on seed breeding and genetics, biological agricultural inputs, and biotech-derived food ingredients.
Although the Netherlands has leading research institutions, established seed breeders and a highly developed food production ecosystem, scientific strength has not consistently translated into globally competitive companies. Data cited from the Netherlands Organisation for Applied Scientific Research shows that Dutch companies represent 3.3% of BioTech startups worldwide, but just 1.3% of scale-ups.
Invest-NL identifies three main weaknesses: too few promising technologies become scalable businesses, regulatory and validation procedures delay market entry, and insufficient financing prevents companies from reaching industrial production. In a favourable scenario, annual Dutch agrifood BioTech revenues could reach about €25 billion by 2040, compared with €8 billion to €9 billion if current conditions continue.
The report does not argue that the Netherlands must manufacture every product domestically. Instead, it recommends retaining strategically important knowledge, intellectual property, companies and specialist capabilities while using European production networks where appropriate.
Biological crop protection illustrates the regulatory challenge. Approval for a new biological crop protection product in Europe can take eight to ten years, while existing frameworks were largely designed for chemical products. As a result, some Dutch companies choose to launch first in markets such as Brazil and the United States, where commercialisation can be faster. Invest-NL warns that Europe could lose ground in a biological crop protection market expected to expand seven- to tenfold by 2040.
Food biotechnology faces comparable obstacles. Approval for novel ingredients can take one to three years longer in Europe than in the United States, while constructing an initial commercial production facility may require tens or hundreds of millions of euros. For fermentation-derived food ingredients, Invest-NL estimates that favourable conditions could generate approximately €8 billion in annual Dutch revenue by 2040, compared with around €2 billion under existing policies.
The report calls for earlier regulatory guidance, more predictable assessments and opportunities to validate products in real-world settings. It also stresses that faster approvals should not compromise safety.
Recent funding rounds show that Dutch startups continue to develop technologies in the areas highlighted by Invest-NL. Eindhoven-based VitalFluid raised €17.2 million in August to commercialise plasma-activated water technology for growers. Wageningen-based Aardaia secured €5 million in July for its genomics-based crop breeding platform, while Nijmegen-based Gravity Gardens raised €2.6 million in September to scale chemical-free seed activation technology.
Dutch food biotechnology companies have also attracted investment. Vivici received €12.5 million in European Innovation Council backing in June to expand the supply and commercial reach of precision-fermented dairy proteins. Revyve, meanwhile, raised nearly €24 million in a Series B round last year to expand production of yeast-based ingredients designed to replace eggs in food manufacturing.
Competition is developing across Europe. France’s Agriodor raised €15 million for natural scent-based pest management, while Denmark’s Mycoverse secured €2.4 million for fungal alternatives to chemical pesticides. In food ingredients, French precision fermentation startups Verley and Standing Ovation raised €32 million and €30 million respectively in 2026. Belgian company MAASH obtained a €12.15 million financing package to support industrial-scale mycoprotein production.
These developments do not prove that the Netherlands has already lost its position, but they demonstrate that rival European companies are attracting capital, building production capacity and pursuing opportunities in the same markets identified as strategically important for Dutch agrifood biotechnology.
To address the gap, Invest-NL proposes an indicative €650 million to €1.1 billion in public financing capacity between 2026 and 2030. The proposed support would cover research, regulatory improvements, infrastructure and industrial scale-up. Its targets for 2030 include doubling the number of agrifood BioTech ventures, cutting time to market by a factor of three and helping create five globally competitive companies capable of raising more than €100 million each.
Sources: EU-Startups.