'Earnings model must not suffer from sustainability'

Agrifirm published its annual Corporate Social Responsibility (CSR) report yesterday (28 May). The cooperative gives substance to its sustainability ambitions. With Ruud Tijssens, director of cooperative affairs, we go deeper into the matter. 

Which sustainability ambitions have you been able to achieve and what could be improved?
"What I consider to be a positive change is the integration of sustainability into the global agricultural sector. A few years ago, thinking about sustainability was mainly in line with the northwestern European idea, which is different now. We are busy with projects involving responsible raw materials The search for alternatives is going well, but there is still something to be gained from large-scale imports."

"In addition, we also pay attention to the reduction of antibiotics in the interest of food safety. This is already going very well in China and Poland, for example, which is great to see that there is clear market demand there. We are also taking steps to think in terms of circular agriculture. is well established with us and is included in all decisions. For us, circular also means future-proof agriculture. With as few emissions as possible, emphatically taking into account social and ecological aspects and sufficient earning capacity for farmers and horticulturists. of a good revenue model for the growers is the most important dot on the horizon for us."

You indicate that the switch to circular agriculture is necessary. How do you see that?
"The more we think about it, the clearer it becomes for us: all themes that are central to Agrifirm come together in this topic. We define it as future-proof agriculture, where everything is taxed as little as possible and supported by a good return For us, for example, reducing emissions is equivalent to improving the product, because we supply animal feed to, for example, allow cows to produce milk and keep them in optimal health, not to produce methane."

You have started pilots in the cultivation and application of field beans in animal feed. How are the results going? 
"We see with field beans that it is technically doable. It is in itself an easier crop than Dutch soy, for example it seems less sensitive to drought. However, it remains a challenge to get sufficient balance from both field beans and soy. Both crops are seen as an alternative to grains, but cannot compete with the grain balance. The key question remains where the market demand comes from. If the demand is not for soy or field beans in animal feed, then there is better place otherwise be used for. There are several competing products."

How long do you think you will continue to use soy in the ration?
"We are not in favor of banning soy, it is a good crop. If there are negative effects on some aspects of a cultivation, then you have to tackle those negative effects. Don't write off the crop."

What are the measures you have launched in China regarding heat stress in sows? Is the African Swine Fever Outbreak a Jammer?
"The measures regarding heat stress in sows are a complete package with additives, farm management advice and nutritional advice. There was no resistance per se. The importance of these measures is clear to everyone and contributes to a good yield and healthy animals. "We were certainly affected by the African Swine Fever, but the corona crisis also brought the necessary challenges. In both crisis periods, we worked intensively with the sales team to supply customers when possible." 

"It is true that China was ahead of this crisis and is recovering during this period. Where the countries here are now slowly coming out of the lockdown, China has been working for a while to get back into the old rhythm. The Chinese market is the first country where we are launching new products again. The market in Brazil is of greater concern to us at the moment, as the corona crisis is now on the rise there."

Speaking of the corona crisis. Will this still affect your strategy in 2020? 
"So far, despite the crisis, the company is doing well. The effect of this differs per sector. For now, we can't do much more than keep a close eye on it. In addition, more developments besides the corona crisis, such as the nitrogen measures, are a cause for concern. in the cattle sector. More than ever, we are looking for solutions together with livestock farmers and are holding discussions to arrive at these solutions."

"All this has no influence on our strategy and vision, on what we want to be. It only encourages us that we sometimes have to think extra creatively and that we have to adapt more, but that should not be a problem. We are fortunate that we are not only active in 1 market and in 1 market segment. The risk spread works out positively for us in this case."

Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

j.cosse@boerenbusiness. Nl

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