The impending departure of Dick Hordijk as CEO of Agrifirm comes as a surprise, but then again not. After eight years of leading one of the largest farmers' cooperatives in the Netherlands, the Supervisory Board believes the time is ripe for new leadership. He leaves his successor with a few major challenges that, according to the outgoing CEO, sometimes require radical choices.
In theory, a third four-year term for Hordijk as CEO of Agrifirm would have been perfectly possible, but that did not happen. After two terms, Hordijk and the supervisors of the cooperative decided in mutual consultation that it would be better to part ways, according to the explanation that appeared on Monday afternoon. The announcement of his departure at the end of this year was already made public, before a successor is known. This has created clarity that a changing of the guard is imminent.
Generalist
Hordijk was seen from a distance as an enthusiastic connector who managed Agrifirm as a generalist. Not so much a professional who knew the ins and outs of compound feed, artificial fertilizers or crop protection products that Agrifirm supplies to the farmer. He had good, but also challenging years. 2023 was particularly tough when Agrifirm for the first time since the merger in 2010 Red numbers had to present. But even then he did not shy away from interviews, just as he was never too shy to share his vision in national media regarding the farmers' protests. He also advocated for the farmers' earning model by investing in projects such as ValleiVarken.
Reorganization started
Earlier this year, Hordijk started a reorganization to balance costs with benefits. However, he will not be given the opportunity to implement the new strategy, which will start in 2025. The exact form the new strategy will take is not yet known to the outside world. This is logical, because Hordijk's successor will also have to have his or her say in this.
Agrifirm is facing a few tough strategic issues. The use of artificial fertilizers and crop protection products is a subject of considerable social debate. But how they intend to absorb the shrinking livestock population is perhaps the biggest challenge. In recent years, Agrifirm's feed sales have often shrunk faster than the market, which will also continue to shrink in size in the coming years. In 2023, Agrifirm will sell more than 30% less feed (including by-products) than in 2016 when Hordijk took office. That is downright considerable, although according to the company itself, there is no question of understaffing in the factories.
The feed activities on the also shrinking Belgian market also require attention. Six months ago, Hordijk said that he did not rule out a departure from Belgium, just like ForFarmers did last year. "We should not be afraid to make radical choices in advance", so he spoke. In China too, Agrifirm's performance is below par, although they want to remain active in that market. The cooperative's foreign activities are sometimes a topic of discussion among the Dutch supporters anyway.
Successor already in sight
White smoke about who will succeed Hordijk will probably not last long, as Agrifirm hopes to communicate about this within a few weeks. The ink on the contract is not yet dry, but this expectation does suggest that the new CEO is already in the picture. It is up to him or her to lead the green-yellow feed cooperative through challenging times in the coming years together with the fairly new CFO Stefan Bulthuis.