Inside: Pig Market
Pig company is well on the market
Dutch pig farms that are for sale are in good shape on the market. Several brokers let you know. On the other hand, the companies are not just being sold; not at all now that the banks are panting less.
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In the past year, 87 pig farms were for sale, according to preliminary figures from the Dutch Association of Real Estate Agents and Appraisers (NVM). Various real estate agents report that there were more pig farms for sale in 2017, compared to 2016 (79 companies). However, fewer companies were sold in 2017 (18 companies), compared to 2016 (29 companies).
"There are currently many companies for sale, but not under duress from the bank. So there is no time pressure, which means that companies are not being given away at the moment," says Maarten van der Vleuten, real estate agent at Van den Berk & Kerkhof.
Ard Klijsen, agricultural broker at Klijsen brokers & appraisers, also notes that there are many pig farms for sale. "However, the fact that fewer sales were made is due to the fluctuating pig prices. This ensures that there is a wait-and-see attitude among buyers. Although there are also other types of buyers, for example from other sectors or private investors."
Large companies in particular are in demand
What is striking in the NVM figures is that the average number of hectares of the farms sold (3,4 hectares) is higher than in previous years (in 2016 this was 2,4 hectares). "The large, new companies in particular are selling well. The small pig companies are having a more difficult time. When small companies are sold, it is often to demolish and rebuild the company. This is because it is difficult to find locations for new construction," says Henk Hissink, real estate agent at Renken Makelaardij.
The growing pig farmers are generally the main buyers. "They buy up existing companies, which ensures that the pig companies that are for sale are sold well to fellow pig farmers," says Van der Vleuten.
Policy province of Brabant
According to Van der Vleuten, this is especially the case province of North Brabant the influence from it transition policy clearly visible. Livestock farmers there are faced with a policy by the Provincial Council to accelerate the approach to nitrogen emissions from existing stables (adjustment must be made before 2022).
De Producers Organization Pig Farming fears that hundreds of farmers will not be able to afford the necessary investment for the air scrubbers. The organization is afraid that this will cause many pig farms to go bankrupt.