Agrifirm: more profit, but less feed sold

Agrifirm recorded a net profit of €2017 million in 38, of which €25 million is paid out to members. CEO Dick Hordijk speaks of an excellent result, which is partly due to the new strategic course of the cooperative. However, the shrinking (feed) volume is striking in the figures.

The profit realized by Agrifirm is 25% higher than in 2016. However, compared to 2015, there is still a significant gap. At that time, the cooperative recorded a profit of more than €75 million, albeit partly thanks to one-off gains (such as the sale of Plukon). Despite the increase in profits in 2017, Agrifirm pays out €8 million less in dividend than in 2016.

Volume loss not averted
According to Agrifirm, the growing profit is due to customer gains in both the vegetable sector (crop protection) and pig and poultry farming. However, the total sold feed volume fell further to 6,25 million tons (-6,6%). The vegetable volume also fell to 764.000 tons (-6,9%), while the sales of plant protection products also brought in less money by €118 million (-16,7%). 

In its own words, Agrifirm operated in fluctuating markets last year. With the new launched strategy 'Better Together' Agrifirm will be fully committed to knowledge sharing and chain collaboration in the coming years, from which, according to Hordijk, the first fruits were already reaped last year.

Takeover in Poland
With the acquisition of the Polish compound feed company Bacutil, Agrifirm acquired a stronger and leading position in Poland (top 4) last year. In addition, a restructuring took place in Germany; Agrifirm now focuses mainly on feed sales in the border regions with the Netherlands. In Belgium, Agrifirm speaks of steady growth, especially in the poultry segment. Agrifirm is also satisfied with the state of affairs in other markets, such as Spain, Italy and China. 

New chairman
There are changes in Agrifirm's supervisory board. After 16 years, the current chairman Theo Koekkoek makes way for Arian Kamp. This dairy farmer from Raamsdonk (North Brabant) has been active as a director at Agrifirm since 2006 and is now promoted to chairman. 

Photo: Agrifirm

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

© 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.