AgruniekRijnvallei is booming thanks to lockdown

AgruniekRijnvallei can look back with satisfaction on the first 6 months of this year. The cooperative sold 2,5% more feed compared to the same period last year. Customers can count on an extra discount, partly because the Welkoop stores ran well during the lockdown.

The increase in feed sales is even higher when sales are corrected for the feed that was produced for third parties last year. Exact tonnages and distinction between the various animal sectors are not mentioned, but all animal sectors have contributed to the growth. In its own words, the cooperative has been able to welcome 'a lot' of new customers from the cattle sector.

40 cattle farmers added
Commercial director Johan Schuttert says that more than 2020 cattle farmers have become customers in 40. Who do they come from? "Most come from the larger compound feed companies in the Netherlands, but that makes sense in itself." According to Schuttert, the fact that feed sales in the shrinking pig farming sector are not declining is a positive development. Furthermore, the feed cooperative says it is doing well in the laying poultry sector thanks to its focus on feed for whole beaks. 

The success is a combination of several factors, explains Schuttert. "We combine a competitive cost price with specialized production." According to Schuttert, the fact that each feed category is made in a separate factory is certainly an advantage. "That sets us apart from the competition who don't."

'Corona discount'
There is a nice windfall for the customers of AgruniekRijnvallei. From mid-August to the end of January, buyers of compound feed receive an extra discount of €5 per tonne purchased. "We deliberately extend this until January, otherwise logistics could be disrupted between around New Years." A discount of 29% applies to sold plant protection products with retroactive effect from December 2019, 15 to August 1,5. "All in all, we believe that there are substantial discounts", says Schuttert.

The discount is mainly due to the good performance of the 9 Welkoop shops that AgruniekRijnvallei operates. "During the lockdown, they sold a lot of garden products to DIYers. And because we go on holiday less this year, many more outdoor pools were sold. You could therefore speak of a corona discount," says Schuttert.

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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