Background veal farming
Van Drie: 'Calf sector takes a big hit'
The veal farming sector cannot escape the adverse consequences of the corona crisis either. There is much less demand for veal and sales are falling sharply. According to Marijke Everts, Director Corporate Affairs at the VanDrie Group, the veal sector will take a major blow, but the sector will remain united.
The veal farming industry has been hit hard because the catering industry has come to a complete standstill. The more expensive cuts of veal are now sold much less. This happens not only in the Netherlands, but also in the important sales countries, as Marijke Everts knows. “It is precisely in this sales flow that we can sell the more luxurious meat parts that are sold at a higher price, and that has now all been discontinued.”
price quotes
The price of calves has fallen very sharply due to the situation that has arisen, according to the prices of Vee and Logistiek Nederland. Since week 11 there has been a sharp drop in the price quotations. Where black-and-white bull calves with extra quality were still priced at around €11 in week 105, the price has now more than halved and is now at €15 in week 50.
The price of first quality black and red heifer calves has also fallen sharply since week 11. The value was still €45 then, but has even dropped to €5 in week 15.
Calves surplus
Because the demand for veal has decreased enormously, far fewer animals are slaughtered and therefore calves remain. Keeping calves for farmers comes with additional costs. In addition, dairy farmers can get into trouble with phosphate legislation if they keep the calves but do not have the necessary phosphate rights.
Everts indicates that the VanDrie Group is very aware of its role in the entire chain. “We do everything we can to accommodate the young calves in the chain, but unfortunately this is becoming increasingly difficult. Ultimately, it is no longer feasible to continue to use the same prices and the prices will probably fall further.”
Livestock traders also agree that the current situation is very difficult. According to a number of traders, it is impossible to estimate what the prices will do and what the impact will be in the longer term. It is noted, however, that the calves leave for a lower price, the farmers are a bit more careful with keeping calves.
Economic damage
The extent of the economic damage is highly dependent on the duration of the corona crisis and the measures surrounding it. When the situation will improve depends on the sales market and in particular sales to important foreign markets. According to Everts, VanDrie Group is looking closely at what is currently going on. "We are working with SMART to see what European member states will do, but the economic perspective will of course not improve as long as the current measures do not change."
There is also a strong collaboration as a sector as a whole. “We are united just like before the crisis. We are working with the Stichting Brancheorganisatie veal sector (SBK) and the COV, but also with the government to see what support measures are possible, "says Everts.
Finally, Everts emphasizes that the situation is very difficult, but there is a lot of respect for the intensive efforts within the sector. “We hope to be able to keep the entire chain going as well as possible. And we also have enormous respect for dairy farmers, veal farmers, transporters and the employees who work intensively for the sector on a daily basis.”
Chanti Oussoren
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