AgruniekRijnvallei wins in chickens, loses in pigs

AgruniekRijnvallei looks to have had a stable 2018: feed turnover fell slightly, turnover rose and the result of €1 million remained well above the red line. In addition, a net 60 new members have been added. Although the company also has to anticipate changes in Dutch livestock farming, says general manager Martin Grift.

Sales of pig feed at AgruniekRijnvallei fell by 6% last year. According to Grift, this is mainly due to pig farmers who, with a view to 2020, have stopped. For the current year it hopes for a stabilization of pig feed sales, although Grift immediately indicates that this aim (in view of the development in the sector) is optimistic. Where on the one hand pig farms stop, he also sees that other pig farms quickly scale up in production.

Increase in poultry sector
AgruniekRijnvallei has been able to compensate for the decline in pig feed with a relatively large increase in poultry feed. The cooperative group knew, partly due to the arrival of more than 40 new customers, to increase the sales of poultry feed by 11,6%. AgruniekRijnvallei wants to continue to grow in feed sales to poultry farming this year, Grift says. According to him, the sale of cattle feed has remained stable over the past year.

The market share in organic feeds also increased significantly last year, partly due to the collaboration with De Valk Wekerom. Although the general manager sees that the organic market is stabilizing. "Growing becomes difficult in organic pig and poultry farming. There is some room to switch in the cattle sector, but there is little need for organic compound feed."

Turnover and result
In addition, AgruniekRijnvallei saw the turnover value in 2018 increase by 5% to €252 million. The financial year closed with a positive result (after tax) of almost €1 million, but this is 40% less than the €1,65 million of 2017. The result also takes into account a price reduction of more than €3 million. about compound feed and plant protection products purchased in 2018, it adds.

The price reduction is €6 per tonne for compound feed and 2,5% for the purchased crop protection products. AgruniekRijnvallei paid out a total of more than €2018 million in 9,6; in addition to the price reduction, this includes the bonus, payment and members discount, the 'Extra advantage' and the price reduction in September. This 'advantage' meant an extra discount of €5 per tonne on the own-produced compound feed in bulk and was valid from September 2018 to week 4 of 2019.

Proud of company
Grift is pleased with the fact that AgruniekRijnvallei welcomed a total of (net) 2018 new members in 60. That is why the group will continue with its current strategy next year. "That means being close to our members and thinking along for optimal business operations," says Grift. During the general members' meeting on April 11, he wants to give the members 1 message: "Remain proud of the agricultural sector."

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.