FRIESLAND - Economy
Ongoing process of modernizing the economy
Probably more than anywhere else in the Netherlands, Friesland has its own culture, which is still very much alive. The fact that the Frisians speak their own language - Frisian - is the clearest expression of this. In much the same way as the culture has remained largely intact, the agricultural sector also continues to play a major role in the Frisian economy. Together with its associated industries, the agricultural sector accounts for almost one-third of total production in Friesland. However, the major reliance on the livestock and dairy sector is under pressure because of the European Community's common agricultural policy, and this has been one reason for a change of policy in Friesland.
The vast amount of space available and its good transport links, such as with the Randstad (the Amsterdam-Rotterdam conurbation) via the Afsluitdijk, make the region attractive as a location for a variety of businesses. The banking and insurance sector is particularly well represented, with activities concentrated in Leeuwarden, the provincial capital. Other expanding sectors include the metal products and transport goods industries, and tourism.
Despite these positive developments, the structure of Friesland's economy is still flimsy, and employment opportunities remain insufficient. Moreover, one side-effect of the development of industry and services (in and around the towns) is that the Frisian countryside is becoming even more depopulated. This brings with it the danger that local amenities (schools, shops, etc.) could disappear in some smaller rural communities.
Expanding services sectors
Small and medium-sized firms are very prominent in Friesland, with over two-thirds of total employment in the province concentrated in this sector. The limited number of large companies is due in part to the fact that a large number of small centres are spread over a wide area, ruling out large-scale industrial development. There are, however, some multinationals, for example in the agri-food sector.
In the dairy sector there is Friesland Coberco Dairy Foods in Leeuwarden, which has factories in four continents and exports dairy products (butter, cheese and powdered milk) to all parts of the world. HZPC, which produces seed potatoes, also has customers throughout the world, and is very active in the field of biotechnology. It is primarily in dairy farming and the food-processing industry that Friesland plays a central role, since all the activities and expertise related to these fields can be found in Friesland.
A number of large national insurance companies, such as Aegon and Avero Achmea, have large offices located in Leeuwarden, which is also the site of a major Postbank office. Manufacturing activity is centred in towns such as Drachten and Heerenveen, with in particular electronics (Philips) and the paper, printing and metalworking industries.
The growth in Friesland's exports has so far lagged behind the national average.
From agriculture to agri-food
Productivity in agriculture has increased dramatically over the last few decades as a result of mechanization, the application of new (cultivation) techniques and automation. While the consequent rise in production has been enormous, the workforce has fallen sharply.
To absorb this labour surplus, the structure of the Frisian economy has been broadened. This process, which is still underway, has resulted in the creation of an agri-food industry and the development of other branches of economic activity. There has recently been a strong growth in organic farming, and in new agricultural or horticultural developments such as open-field cultivation and bulb-growing.
In addition, a number of other sectors within the Frisian economy - e.g. tourism and business services - have steadily increased in importance. Furthermore, various businesses originally closely linked to the agricultural sector have broadened their economic base by using their know-how and expertise to take advantage of new market opportunities.
Frisian firms are thus selling more of their products abroad, some of the leaders in this respect being the consultant engineers Oranjewoud (Heerenveen), the electronics company Tektronix, Amels (yacht-building), Batavus, Tecair, Fenner-Dunlop, Pâques, Lankhorst and Philips.
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