Although the animal numbers are shrinking, AgruniekRijnvallei is seeing an increase in feed sales. According to Martin Grift, the general manager, the growth will be higher than expected. He attributes the success to the total approach on the farm.
Without mentioning exact tonnages, AgruniekRijnvallei speaks of a growth of 3% in the first half of the year. In 2018, sales amounted to 633.000 tons. With the exception of the pig sector, more feed was sold in all animal categories.
Growth is not disappointing
"At the beginning of the year we made a prognosis and that always contains a bit of enthusiasm. Let me put it this way: the growth is not disappointing," says Grift. According to Grift, the contraction in the number of pig farmers is not that bad, although he expects some drop in demand in the second half of 2019 (due to the stopper scheme). AgruniekRijnvallei itself assumes a few dozen pig farmers in its customer base. Grift acknowledges that the competition between feed companies will probably harden to retain the stayers.
The drought has also boosted sales, especially in cattle feed. "With soda grain, we offer cattle farmers an alternative to maize, which was limited in availability due to the poor harvest in 2018." In doing so, we focus on VLOG feed, to which more and more cattle farmers are switching. "Our production location in Lienden is set up for this." Dairy farmers who produce according to VLOG standards usually receive an extra €0,01 per kilo of milk for the additional costs. Grift does not find this premium paid generously when asked. "It is possible for some livestock farmers, but sometimes not."
Total approach
The key to success, according to Grift, is the total package. By this he means, among other things, a competitive cost price, combined with sound advice and involvement on the farm. That is why we do not work with independent feed advisors. "We rely on our own knowledge and expertise and go out to the farm with passion."
"Our field staff is closely involved with our customers. We are also a medium-sized party and that sometimes appeals to the livestock farmers." In spite of the declining livestock AgruniekRijnvallei sees no need to move abroad. "We are too small for that. The Netherlands is and will remain our home market."
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