In what color does Voergroep Zuid write its annual figures?

Feed group South is pleased with the volume growth achieved in 2016. The company recorded significant volume growth in pig farming. This is remarkable growth, because this is contrary to the market trend. After a solid loss in 2015, the company is writing light green figures again.   

Sales of compound feed increased by 2016 percent in 2,2 and sales of feed raw materials increased by 6,9 percent. On balance, this means a volume growth of 2,7 percent to more than 800.000 tons. In pig farming, Voergroep Zuid achieved a volume growth of 5,7 percent. The total sales of compound feeds in this sector decreased by 2016 percent in 5. This makes the company above average. Dairy sales rose by 5,3 percent. That is slightly below the total sales growth of more than 8 percent. 

Self-mixers in poultry farming
In poultry farming, the volume shows a significant contraction, namely 4,4 percent. According to the feed manufacturer, this is because poultry farmers are increasingly mixing in loose raw materials themselves. This also explains why the sales of individual raw materials increased by 6,9 percent.

Result
Voergroep Zuid realized a loss of 2015 million euros in 4,7. A reversal is visible in 2016, given the profit of 355.000 euros from a turnover of 280 million euros. This equates to a somewhat meager profit margin of 0,12 percent. With a solvency of 65,8 percent, equity remains at a high level.

Expectation
Voergroep Zuid director, Wim Maaskant, sees plenty of opportunities for 2017. By further streamlining the organisation, Voergroep Zuid wants to realize its core values: high-quality feed at a competitive cost price. The aim is to keep feed volumes the same.

Almost half of all sales come from Dutch compound feed, concentrates and single raw materials in the working area of ​​Voergroep Zuid. The cooperative wants to use this, in its own words, 'geographically favorable position'. 

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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