Company report Class Ki
Class Ki focuses on the stayers with new bear stable
With a brand new boar stable in Son in Brabant, Klasse Ki is ready for the future. There is plenty of that for those who stay in the Dutch pig sector, according to Stefan Derks (51) director of the genetics supplier. At the same time, foreign countries are becoming increasingly important. "We deliver the sperm just as quickly to a Thai as to a Dutchman." Derks about the new barn, developments in pig genetics, market opportunities in China, warm remediation and circular agriculture.
When Klasse Ki and the Danish breeding organization DanBred entered into a partnership in 2018, agreements were also made for the construction of a new boar barn. According to Derks, the good positioning of Class Ki was the reason that DanBred knocked on the door at the time. "Because we are only about a 1,5 hour drive from Schiphol, it is logistically very attractive to send both frozen and fresh semen across the world from here. Amsterdam is an international hub, unlike Copenhagen." According to Derks, this is the reason for the Danish breeding organization to house the best boars in the Netherlands. "Within 24 hours the semen is delivered to the customer from here. Anywhere in the world. In principle, a Thai, an Italian or a Russian has his order just as fast as a pig farmer around the corner."
New ki stable
In Son, a stone's throw from the office in Sint-Oedenrode, the new bear stable has been completed in recent months. The approximately 220 breeding boars will move in at the end of this month. The results are impressive. The new barn is equipped with the latest techniques and systems. The ventilation system is impressive. Fresh air enters through ground pipes that run under the barn. Work is being done on an overpressure system and air filtering to keep germs and viruses out. In the stable, the bears are placed on deep bedding of 30 centimeters. "Until now we have always done a lot on straw, but that is very labour-intensive. Deep litter is pleasant for the animals and less labour-intensive for us."
In terms of health, Class AI leaves nothing to chance. The new bears stay in a separate intro stall for the first weeks, even though they have already been in quarantine by then. Only when the animals are disease-free with extra certainty, do they enter the breeding station. Incidentally, the barn is not owned by Klasse Ki, but was developed by the Beniers family, who are involved in the cattle and chickens themselves. Because the genetics company is a long-term tenant, the family has security. "A beautiful construction", says Derks.
Corona crisis
Due to the corona virus, the opening of the new stable did not go as planned. Initially, Klasse Ki wanted to hold an open day, but now they have received their customers and contacts spread over 8 days at the end of June. "We really liked this, because now we could speak extensively to our customers and invitees." During the corona crisis, it was a lot of work for Derks and the approximately 40 employees. "Normally, the genetics simply go along as cargo in passenger flights. Due to the corona crisis, many flights were canceled, so make sure to arrive on time. Moscow, for example, could still be flown in, but it stagnated from there to other cities. within Europe it was challenging. We have large customers in Northern Italy, for example. Moreover, the virus also flared up considerably here in Brabant and we have successfully taken extra measures by spreading more work."
Stephen Derks
Foreign important, domestic decisive
Abroad is becoming increasingly important. About 20% of the semen is exported, which accounts for 30% of the turnover. The strategy is to get half of the turnover from abroad. Within Europe, Klasse Ki takes care of the export itself, sales outside of Europe are handled by DanBred. "We now sell 650.000 doses on an annual basis. If you look at where our genetics end up and you calculate this, you come out of about 25 million pigs a year where our genes can be found. Although abroad is becoming increasingly important, the domestic sales are decisive. The sow herd slowly moved back from approximately 900.000 to the current number of 850.000 sows, but due to the warm remediation, places will certainly disappear. In view of the warm remediation, 2020 will be quite an exciting year for the sector. for the periphery to which we belong." Larger and recently built farms have also registered for the scheme, Derks knows. "Of the 213 registered sow farms, our customer base also includes pig farmers."
Derks believes that the remediation scheme should have been aimed more at pig farmers with less future prospects. "The offer of stoppers made by the government is dubious. Because younger companies receive a relatively good subsidy, you encourage the wrong companies to stop. The younger buildings usually cause less odor nuisance and are usually more sustainable. The recent price drop on the pig market has led to a significant drop in the value of livestock, Derks explains. As a result, the calculation for many companies is different from what was thought a few months ago. "It would therefore not surprise me that some pig farmers decide to continue farming."
China sales not the future
The arrangement also has its advantages. "The pigs we produce here also all have to be sold. The pig price has been good in recent years, mainly thanks to Chinese demand." Derks, who has spent a lot of time in China himself, thinks that production there will grow again soon. "Maybe even within a year." According to Derks, a Chinese does not want to import, but rather exports. "Believe me, the major integrations there are mega-ambitious and want to serve other markets such as the Japanese market in the long term. They have an advantage in terms of transport distance." According to Derks, the Chinese market is therefore not the ideal solution, but it is for the fifth part of the pig, they can never get enough of it. Within Europe, Spanish production is growing at an unprecedented rate, also in the coming years. Moreover, the technical results in Spain are increasing rapidly. "Our database shows that the best farms there wean more than 35 piglets per sow per year. This will be offset by shrinkage, for Dutch pig farming it is necessary that a critical mass remains here." In that regard, Derks is not worried. "We are optimistic for our company, we mainly work with progressive companies as buyers who want to continue in pig farming like ourselves."
Piggy bank as recycled animal
Derks is convinced that there is a future for those who stay in the Netherlands. "Pigs are an indispensable link within the principles of circular agriculture. In addition, we produce high-quality animal proteins whose worldwide demand will grow strongly in the coming years. This means that the pig sector cannot be cleaned up, as is the case with mink farming." Derks explains his position on the basis of an example: the piggy bank. “Everyone knows the little pig, but a lot of people don't know what it means.” In the past, the food scraps from a household went to the pig. The pig converted this into meat. In the autumn, the pig was then used as a source of protein for human consumption, which could compensate for the loss of vegetable harvest in the winter," explains Derks. The residual flows from the food industry that are not suitable for human consumption are still used as pig feed. "With this we have our 'licence to produce' in our hands and we are an indispensable link in society."
Cost price and big data
According to Derks, the trick for those who stay is to combine social support with a competitive cost price. DanBred's breeding program is geared to that. "Take the Duroc genetics, which are known for their robustness, high growth and low feed conversion. Important properties for a high health status and high yield. The potential in this line is still great, which offers starting points for improving the financial results of fattening pig farmers." According to Derks, only with good technical results can you lower the cost price and increase the return. "In our customer base we have data from approximately 65.000 sows about which we know everything about fertility. With an automatic system we have weekly insight into the developments on the farm. In this way we can quickly and accurately conclude when progress is being made, or ring the bell when it isn't." Unlike other genetics companies, Class Ki does not have a large field force. "The customers are our ambassadors. They tell the story to others. And without performance in the barn, that has the opposite effect," concludes Derks.
Chanti Oussoren is co-authored.
Wouter Job
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