News Annual figures
Sales AgruniekRijnvallei do not shrink
AgruniekRijnvallei looks back on a good year. Despite the drought and the introduction of the phosphate rights system, the animal feed producer achieved a higher feed turnover in 2018 than in 2017, which was already a record year.
The compound feed turnover has increased to 633.000 tons, 1.000 tons more than in 2017† The growth is remarkable, because a number of animal feed companies were struggling with declining sales figures. For example, ForFarmers gave a profit warning due to the drought.
There was a drop in the turnover of individual raw materials, but this did not stop a new turnover record for animal feed. It was also a good year for other branches of the company; the franchise Welkoop stores and crop protection products, among others, performed well.
More customers
Johan Schuttert, commercial director at AgruniekRijnvallei, is pleased with the volume increase. According to him, the result can even be called striking, especially due to the turbulent developments in the feed market as a result of the drought. "If there is another prolonged drought in 2019, major problems will probably arise. The roughage positions were still good in the first months of 2018, but that is of course not the case now."
AgruniekRijnvallei is also making a profit in the organic segment. Schuttert says that the turnover of organic animal feed has increased by almost 33% last year. Organic feed now accounts for more than 10% of total sales.
The total customer base has also grown; especially from the poultry sector, new buyers have registered. Due to the current results, sales are expected to increase by 10% (compared to last year). This would result in a turnover of €264 million.
What will 2019 bring?
According to Schuttert, whether the volume increase will continue in 2019 depends on various factors. An example is the 'stop scheme', especially for pig and poultry farming. "I expect dairy farming to have a quieter year." Finally, Schuttert expects that the feed price will fall rather than rise.
Tim Roetman
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