ForFarmers has today, together with the announcement of the annual figures, set out the strategic lines up to 2030. The listed feed company is explicitly focusing on further growth through acquisitions, but does not want to take any more steps outside Europe as was the ambition in the past. 'ForFarmers has become big through acquisitions and we want to continue using this model in the future', says CEO Pieter Wolleswinkel in response to questions from Boerenbusiness during the press conference.
"We will continue to drink many cups of coffee with our industry peers in the coming years. Sometimes this results in takeovers. Discussions can gain momentum, but such a process can also take longer." Wolleswinkel does not get much more concrete than this, although it is clear between the lines that there are a few things in the pipeline, given the stated takeover ambitions. He does say that the focus is on the existing markets and that autonomous growth is the first priority. For new markets, all countries within Europe are being considered, with the condition that ForFarmers is able to build a leading position. At first glance, investors seem enthusiastic about the results and strategy, given that the share price on the Damrak rose to its highest level this morning since the outbreak of the war in Ukraine.
The new strategy talks about further acquisitions with a clear demarcation in Europe. In the past, you also looked beyond the continental borders for growth. Is it true that you are doing this ambition have now let go?
"That is a fair observation. Let me start by saying that we first want to grow autonomously in the countries and sectors in which we are already active. The growth figures for 2024 show that this is possible. In addition, we are focusing on acquisitions. ForFarmers has become big with this in the past. We have expanded like an oil slick over the years and we want to continue doing so. European expansion is high on the agenda. In the past, we have spoken out more broadly about this, but entering new markets is not that easy. Especially because we are striving for a leading position in a new country. Outside Europe, the possibilities to build such a position are limited."
Pieter Wolleswinkel
Meanwhile, the circumstances on the Dutch domestic market are not getting any easier. Other feed companies sometimes informally speak of a shrinkage of 20%. Do you recognize yourself in these percentages?
"Our customer-oriented approach allowed us to grow autonomously in the Netherlands last year. Not only in residual flows, but also in compound feed. Given the market conditions that are characterized by shrinkage, this is a great achievement, which we are proud of. The closure regulations mean that we are facing shrinkage, so realistically we have to be. It is difficult to properly estimate the impact of this. Certainly also for 2025, because many closures are still active. In our view, talking about shrinkage percentages therefore makes little sense, especially because this often takes on a life of its own. In addition, there are differences per subsector. I can say that it will be 'hard work' to keep the volumes in the Netherlands going. Fortunately, the foreign markets in which we are active are performing well. In Poland For example, we passed the 1 million tonne mark last year. This is a great achievement, because we have only been active here for a relatively short time. We will continue to expand our position in Poland in the coming years, I can assure you."
Still, briefly about the Dutch pig farming, the most important sales market in the portfolio. You indicate that you have gained market share through a sharp price. In this phase of rapid shrinkage, do you prefer market share over margin?
"It is true that in pig farming we explicitly opt for a competitive market approach and partly because of that we gained market share last year. But being competitive and maintaining a healthy margin can also go hand in hand. In dairy farming we explicitly focus on on providing knowledge on the farm. That has also led to volume growth. In this way, we choose a market-oriented approach that fits best per country and per subsector."
Finally, in the past your strategies were often given resounding English names such as Horizon 2020 en Build to Grow 2025, now you don't see that anymore.
"The name is now: Strategy 2030. That is indeed different from before. Other names have been discussed in meetings, but we have decided to stay away from quick slogans this time. They quickly become outdated, given the challenging and volatile markets in which we operate."