Agrifirm

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Agrifirm invests in farm sales and understanding

19 February 2022 - Klaas van der Horst - 11 comments

Agrifirm Cooperative is launching the new retail concept, BOER&NLekker, in which consumers can pick up the products themselves from the farmer. CEO Dick Hordijk has high expectations. Both as a means to improve the farmer's income and to increase the farmer-citizen understanding. And the short-chain market is growing very fast. In corona time, this has doubled to a turnover value of € 2 billion.

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Hordijk: "Market experts expect that turnover to double again in the coming years. This short-chain trend is a serious development, which is fueled by a new awareness that has arisen precisely in the past few years."

A great idea, then, such a retail concept for farmers who want to sell something from the farm, but don't you compete with all those who already have a successful house sale?
"We are not active in a displacement market. So we don't get in the way of those who already have a successful business. But maybe we can also be of interest to them, because we offer in collaboration with local heroes especially a good package of services, with which we relieve farmers who (want to) sell products themselves in terms of logistics, handling and the like. Anyone who wants to can join."

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Anton (left) and Marc Noorden van de Liesboshoeve. Photo: Bureau Firefire

Agrifirm is a cooperative. Do interested parties have to become a member first?
Hordijk smiles: "That is the question. We mainly look at whether someone fits the concept: whether the people fit and whether the company is transparent. Agrifirm customers/members. The basic principles of our concept are - farmers in the region (maximum 10 to 15 kilometers away) and a sufficiently wide basket with fresh groceries. If we do not have enough customers in the area in question, we supplement this with non-customers. For this retail concept we have set up an independent team with good retail experts. starting now, that is not Agrifirm's core strength."

Would it then be the best idea to organize this from Agrifirm and would it not be better to set up a new cooperative?
"We are now starting this initiative from Agrifirm and will keep a close eye on how things should continue. As mentioned, the company will already be operating at some distance from Agrifirm."

You also give the company two tasks: running a business well and increasing the consumer's understanding of the farmer. Isn't another classic cooperative split looming?
"We as Agrifirm think the position of the farmer is extremely important and so we are not starting this for nothing, but we will also be alert that we do not get in the way of the company's growth rate."

A solid marketing budget is useful for a smooth start of a new concept. With how much money does Agrifirm help this initiative, something with six zeros?
"We have discussed this thoroughly within the cooperative council, because this is of course an important point. The aim is that it pays for itself."

Yes but?
"What I can say is that we have set aside a solid budget for this."

How much do participating farmers have to pay? There may be more margin left than with normal sales, but it is not free.
"The farmer himself determines the selling price of the products that are offered. Ultimately, 70% remains for him or her. The consumer buys via the internet and comes to pick up the products at an agreed time, because collecting it yourself is also an important moment of contact. "

You have probably taken into account what an average farmer can earn if he picks up on your concept.
"We were inspired by similar developments in Belgium and France, but we deliberately did not count on them. But if you consider that €1 billion in turnover divided over 50.000 agricultural entrepreneurs comes down to €20.000 per company, that might give you an idea. "

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Maarten van Fessem and Anke Wismans of dairy farm De Driehoek. Photo: Bureau Firefire

Are you convinced that BOER&NLekker will be a success?
"I will return to what I started with. The short-chain market has great potential. You can also see it in the success of concepts such as De Nieuwe Melkboer and the Boerschappen. What we offer is local product, fresh and in season. also explain well why our product does not come from Thailand or China. In short: we have a beautiful product with a strong story, which can also increase the understanding of our agriculture. That is again important to ensure that we can deal with all our criticism in the Netherlands "Don't throw out the baby with the bathwater. The livestock industry might be driven out here, but then we smell that industry a few days later, because it's simply several hundred miles to the east."

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