'Square valuation is a challenge every week'

Livar has been producing pork under its own label since before the turn of the century. Speaking to Frans de Rond, founder and co-owner of Livar about the past, present and future. "We're trying to grow 10% to 20% in slaughter every year."

How has your concept developed in recent years?
"We started with Livar in 1999 to distinguish ourselves from the anonymous and conventional pig farming. The objective was to earn a living with pigs in a different way. In those 18 years, Livar has developed into a national meat brand and we have grown to more than 20 employees. We process approximately 225 pigs per week, the meat of which is delivered throughout the Netherlands. We also have sales in Belgium and Germany."

How is Livar organized and how do you distinguish yourself?
"Livar is a private limited company with 4 partners. The 8 participating Limburg pig farmers are paid on the basis of feed money. The basis for this is the cost price calculation of Wageningen Economic Research (WUR). Supplements apply on top of this. Pig farmers are therefore less subject to market fluctuations The management of a participating pig farmer partly determines his earnings. Of course we are also keen on costs. We organize exclusivity and uniformity with our own working method and genetics. I will not say which one that is. Also the choice of feed supplier and veterinary practice are organized centrally."

"As a wine lover, the wine world is an example for me to take meat out of anonymity. The worldwide supply of wine does not affect the price of a Grand Cru. We try to translate that idea into pork in order to be so distinctive. My motto is: new things don't exist, new combinations do."

What are the pitfalls and advantages of a concept?
"The biggest pitfall of a concept is to want to start too big. On the other hand, a critical mass is needed to guarantee security of supply. We have that balance in order. We started small and have therefore been able to realize growth every year. Those who join us usually don't aim for big, bigger, biggest. They are often attracted to the way Livar works. Together with them and our suppliers and customers, Livar forms one team."

How do you organize the square value of the pig?
"Let me state that square footage is not a problem, but a challenge. Every week again. For us, for Vion and Van Rooi Meat, and for the butcher on the corner, who only slaughter a handful of pigs. Livar's pork is for example, not worthy of China. Certain products, such as the bones, also disappear in anonymity with us. The art of the profession is to keep this as small as possible. You could compare squared valuation with an inverted puzzle that has to be re-placed every week We try to have an answer by being creative with pâtés, sausages and cured meats."

Where will Dutch pig farming and Livar be in 5 years?
"We aim for controlled growth, depending on demand. In our case, that means that we want to grow from 10% to a maximum of 20% per year. The challenge here is to find the balance between production and sales. Sales come first and then production follows. I myself expect to be active for the next 10 years."

"I expect a solution to the manure problem in the Netherlands within the next 5 years. Manure processing technology is developing rapidly and there is a need for organic fertilizers from arable farming. I don't dare to predict where Dutch pig farming will be in 5 years. That is not up to me either. The Dutch consumer is demanding more and more diversity. This means that there is room for growth of concepts in pig farming. Although I do not have the illusion that everyone will produce for a niche market. That is impossible. Niche can only enforce in addition to usual. That also applies to pig farming."

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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