AgruniekRijnvallei (AR) reports that feed sales have increased in 2019, despite the shrinking livestock. This is partly due to the fact that new customers have been welcomed in all sectors, which has led to a positive customer balance and a plus in sales. The contraction among pig farmers turned out to be less severe than had been calculated.
General manager Martin Grift is satisfied with the result achieved. The largest growth in the customer base was realized in the cattle sector with more than 50 new customers. Welkoop's franchise stores also achieved good results. A new record has even been set, making 2019 the best year in history for stores.
"There has been particularly strong growth among beef farmers, which is partly due to the Bief Select range," reports Grift. The number of members among the dairy farmers has remained reasonably stable. The largest volume growth occurred in the poultry sector, exact tonnages are not reported.
Pig farmers continued to burp
The customer base among pig farmers fell less sharply than expected. The decline, which started in 2018, continued in 2019, but did not reach the low that had been expected. This is mainly due to the fact that some pig farmers decided to continue farming because of the high yields.
When we ask Grift about his expectations regarding the warm remediation in 2020, he indicates that it will also be exciting for AR. "With 500 potential quitters, there is plenty of speculation. We have made an inventory of who wants to quit within our customer base, but it is not yet clear how and what."
Still, Grift remains optimistic about the future. He thinks AR can keep sales stable, also with the warm remediation in mind. In addition to the warm remediation and the emergence of animal diseases (African swine fever and bird flu), government policy on the nitrogen problem will also play a role in 2020. "It is important for us to have things in order here internally, so that we can meet the challenges."
© 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.