Pop-up editorial reports
Agrico Lindau. Big bigger Biggest
Scale size impresses. This certainly applies if you drive past the Agrico Lindau plots. This German arable farm in Saxony-Anhalt grows numerous crops on approximately 4.000 hectares of land. German thoroughness, entrepreneurship and the "fingerspitzengefühl" are the factors that keep it all going.
The 'pop-up editors' of Boerenbusiness visited the company and reported.
What is Agrico Lindau?
Agrico Lindau is a combined arable and contracting company with a cooperative business model, owned by 12 families. More than 30 employees work there every day. During the high season, extra employees from Eastern Europe are flown in. The cropping plan for this season is divided into 650 hectares of rapeseed, 800 hectares of rye and 650 hectares of sugar beet. Wheat and maize have also been widely sown.
15.000
euro
Low bottom points
The company is a confluence of relatively small arable farms, covering about 50 hectares. As in other parts of East Germany, the ground beneath the farm is sandy and barren. In Germany, the soil quality is measured by the number of soil points, which can vary between 0 and 100 per plot. The more soil points, the more fertile the soil. At Agrico Lindau, the bottom points range roughly between 25 and 50. This is relatively low compared to other areas, where the plots exceed 80 points.
About 4.000 hectares of the 3.000 hectares of land is leased. The rest is owned. The land price here is also a bitch compared to the Netherlands. The plots are traded for approximately 15.000 euros per hectare. The lease term that the company uses is at least 10 years. This is necessary for continuity and to make the plots profitable.
Drainage and manure
Due to the dry continental climate in Saxony-Anhalt, the moisture balance in the soil is crucial. That is why the company is convinced of the advantages of a good organic matter balance. The company imports approximately 4.000 tons of processed manure from the Netherlands every year. Dry chicken manure was also used in the past. From a cost point of view, however, processed manure calculates better. Manure and straw are mutually traded with livestock farms in the vicinity. The soils here are sensitive to water peaks. That is why drainage has been used for 130 years. Today, the company has more than 1.000 kilometers of drainage.
A competitive cost is important. The passionate calculates: 'We pay separately for manure, diesel and plant protection products approximately 500.000 euros per year.' Because the revenues vary every year, the cost price determines the final margin. Agrico Lindau is also convinced of the advantages of precision farming and data use. However, the feeling trumps the hard data. The plots are checked daily, assessed and processed if necessary. 'This is how we make a difference compared to fellow arable farmers who farm on much better soils', says the German arable farmer.
Sugar beet is not milk
The challenge for this year is the end of the sugar beet quota in Europe. Just like in the Netherlands, this is also very much alive in Germany. Agrico Lindau has doubled the acreage this year to 650 hectares. That is a sign of confidence in the market. According to the entrepreneur, it is not useful to make comparisons with dairy farming regarding the end of the quota.
Unlike dairy farmers, arable farmers can switch quickly. The market is determined by a handful of processors. Bad years and good years will therefore probably alternate, according to the entrepreneur who is fully committed to extra hectares for this year.
Pop-up editors
The 'pop-up editors' of Boerenbusiness reports this week from the state of Saxony-Anhalt (East Germany). There she is investigating the export possibilities of Dutch manure to that agricultural region. The editorial staff visits German arable farmers and follows Dutch manure processors and exporters.
All articles about this trade mission can be found here.
Wouter Job
© 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.