Anyway, where does this "people don't need X" stop, though? You also don't need oat milk, tofu, soy, peas, etc. to survive.
Let's just go back to foraging for roots and berries and see what population size we can sustain!
What about the people abroad that depend on Dutch-produced food? Export of food isn't a frivolous activity, but a need; we have 8 billion humans on this planet already and many live in arid or otherwise agriculture-unfriendly regions.
Polluting farms will get downsized in Holland over time.
Plus Dutch know-how in agriculture is outstanding. From what I know from Czech farmers, Dutch piglets etc. are really the best in the world.
Cheese is an excellent source of proteins and fat, eating less of it and more of processed and conserved rice/wheat won't probably make you healthier.
On one hand, you could say cheaper food is nice. On the other hand, employing local people to keep money in local economy to produce slightly more expensive food is better in the long term...
We might yet see a similar problem in the space industry. European space industry is likely to fall far behind SpaceX when it comes to rocket costs and especially capabilities, but France won't surrender its independent access to space and will likely subsidize the already-obsolete Ariane models far into the future.
I’m happy to pay extra to support local farms. Hopefully playing field will level out at some point.