Interview Henk Flipsen
'Feed rations for pigs and dairy cattle on the shovel'
The rations for pigs and dairy cattle are going to change considerably. This is mainly due to the plan to collect as many raw materials as possible close to home. Henk Flipsen, the CEO of the trade association Nevedi, thinks it is sensible to deal with this proactively.
Flipsen told this on Wednesday 22 May at a Nevedi conference. On the Congress Among other things, climate requirements and the opportunities and challenges this poses for the animal feed industry and the raw materials trade were discussed.
The conference discussed the fact that we here in the Netherlands depend on raw materials from countries outside the European Union. How do you view that development?
"The animal feed industry wants to be less dependent on raw materials from, for example, Latin America. You should not want to be dependent, and certainly not on more unstable countries. You should even ask yourself whether you want to be dependent on a country like France. I also think that we need to think carefully about all the plans that are currently in place in the field of regional raw materials, and we have to realize that this is not a short-term issue, but that it needs a transition period. "
Where should these raw materials be produced?
"In our opinion, production should take place at the best locations. As close as possible, but as far away as necessary. Minister Carola Schouten (Agriculture, Nature and Food Quality) also formulates this in her vision. that the impact on the climate must be carefully considered.It is currently not wise to just grow raw materials everywhere, because there is too little knowledge in this area. Brussels can also provide much better support in this."
"Actually, it means that the balance of protein crops in the European Union is not high enough, although at the same time you have to be careful with subsidies and market support for protein cultivation. The European 'Protein Plan' offers good starting points, but ultimately we want a market-driven balance that in the long term meets the desire to have enough qualitatively suitable protein crops.Our Raw Materials Guide shows that not much is imported.It mainly concerns soybeans and soy flour, but half of all raw materials already come from the Netherlands. if you add the roughage to this, it means that 75% of the feed requirement already comes from the Netherlands."
The main themes of your congress were the climate, the cycles and the challenges this entails for entrepreneurs. There is often a negative response to these themes, what do you think?
"On the one hand, I can understand that Dutch farmers and companies think that there is too much on their plate in this area. I also understand that companies get a stomachache. This is because so much has to change, but nobody is ready with the wallet. However, I don't think it's wise to get mad at yourself. I think you should think carefully about what you are going to do with this transition. I would therefore put my money on the companies that want to make this sustainability step faster, then on the companies that have been doing the same for years. It is essential to have an open mind to what society demands."
Do these climate requirements also mean that the rations of pigs and cattle are drastically changed?
"Yes, that is going to change drastically. That has to do with the plan that 10% of the protein must come from their own soil within 65 years. This also means that concentrates will play a more important role. That means that animal feed companies have a broader spectrum of raw materials to be able to serve the customers in a tailor-made way."
Most feed companies say they are growing, yet the market is shrinking. What's up with that?
"The average member of Nevedi does indeed say that it is going well, but it is immediately stated that it is a shame that it is not going well for others. We simply have to conclude that the sales of concentrates are shrinking every year, which is partly caused by decrease in the dairy herd. Feed companies are partly solving this by extra sales on other product groups."
"On the other hand, we also saw at your conference that sales of compound feed in Europe are expected to grow at an annual rate of 10% over the next 0,3 years. A country such as Turkey, for example, is experiencing significant growth. This is in stark contrast to the declining production. of Dutch compound feed."
One of the lectures at the conference was about biofuels. How does the Dutch feed industry view these fuels?
"We wonder whether you should use biomass for energy production. When you talk about bio-ethanol, for example, we do experience stiff competition from it. In my view, this concerns unfair competition, because the biofuel sector is heavily subsidized. However, "We can also use the co-products left over from biofuel production for animal feed at some point. That is also happening now."
Anne-Jan Doorn
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.