A change of leadership on Agrifirm's executive board should provide fresh impetus. "We need to sail a bit closer to the wind," says CEO Piet Hilarides, who took office in December. In recent months, he has been developing a new strategy, which the members' council recently unanimously approved.
After a few bad years – in 2024 there was a loss of more than €23 million – Agrifirm is back on track for a positive result. The decline in the Dutch livestock population remains a concern for members and the company, but is no longer a direct threat to its results. Agrifirm is doing reasonably well abroad. "My mission is to develop a forward strategy, both domestically and internationally," said Hilarides. shortly after taking office"The details will follow this summer," he revealed back then, and then we'll talk again. No sooner said than done.
In the meantime, Agrifirm sold the activities in Hungary to the publicly traded UBM Group. However, this step isn't a sign that Agrifirm intends to withdraw from other countries, Hilarides emphasizes. "Hungary was a fairly well-performing business unit. The sale has nothing to do with the results. However, we would have had to invest significantly to maintain our leading position and remain profitable in the long term. We decided against that and to focus on other markets."
| On track for profit |
| Agrifirm doesn't usually share half-year figures, but this time they've made an exception. The adjusted operating profit (excluding one-off income or expenses) rose by €20 million to €35 million in the first half of this year. The company says this puts it on track for a positive result for the current fiscal year. Volumes are also showing positive net growth. "You can't change the world in six months, but we are making real progress. We're partly a seasonal business. The second half of the fiscal year is often a bit weaker, but we can maintain this trend, even with a further decline in the Dutch livestock population." The CEO isn't satisfied yet. He says the internal profit targets are significantly higher than the current results. |
Full steam ahead
The slogan "Full steam ahead '28" is prominently displayed at the top of the new strategy. What this means in practice varies considerably per business unit, Hilarides explains. "With the sales of premixes, which are performing well, we want to grow globally and gain market share. This also applies to our cattle division and the Welkoop stores." It's a different story in the sales of poultry and pig feed, which are associated with low margins. Growth isn't always realistic there due to the shrinking livestock population, although gaining market share is a goal. "We want to achieve this by achieving cost-price leadership and putting the customer even more centrally."
In concrete terms, this means streamlining production and bringing focus to the organization. "We do this, for example, by comparing the performance of our feed factories. This creates healthy internal competition." The CEO believes that, in the new plans, each business unit must, simply put, be self-sufficient. He also continues to critically monitor the size of the head office, although reorganization is not currently on the agenda. This is partly because the company has resumed its upward trajectory.
Trend break for Agrifirm
He lists the countries where results have improved. "In China, we're back in the black, as are our South American companies in Brazil and Uruguay. Poland is also doing much better, with sales growth of 20%." On balance, feed sales in tonnage have increased slightly in recent months. According to Hilarides, the Dutch domestic market remains challenging due to the decline in livestock, although Plant Based Solutions had a good spring and Bonda is also doing very well with its residual flows. Sales abroad are increasing again. "That's a trend reversal for Agrifirm," he says optimistically.
Piet Hilarides
The Belgian market is a recurring theme in Hilarides' conversation. "Despite the disappointing results, we don't want to run away; that's not how we operate. Two months ago, we made changes to our Belgian management team, and together we believe we can turn the tide." After a moment of silence, he adds: "We know how to do it; now we just have to do it."
Acquisitions not a must
Agrifirm's CEO opts for a straightforward, business-like approach. Results come first, the rest comes later. This also applies to acquisitions. He uses a metaphor: "If we compare Agrifirm to a house, it should be beautiful even without a dormer window. In other words: first focus on organic growth and internal performance." According to the CEO, the strategy is aimed at getting the house in order to return to a structurally positive financial position. However, acquisitions can be a valuable addition, for example, to reduce the cost of producing pig or poultry feed. "We're taking a very targeted approach. A partnership in, for example, premixes or crop protection could also be an option. You don't always have to buy something to grow or improve."
And what about sustainability ambitions? "We are and will remain that green-yellow Dutch cooperative that prioritizes sustainability. But we will first market our current innovations before investing money in new projects."
Is it time for a well-deserved vacation after an intense first few months? Hilarides replies that he doesn't have anything planned yet. He'd rather spend some time implementing the new strategy within the cooperative.