Interview Yoram Button
ForFarmers: 'The harder the Brexit, the better'
Many of the companies in continental Europe are watching the Brexit negotiations between Brussels and London with bated breath. Livestock feed company ForFarmers is one of the few companies that does expect to benefit from a hard Brexit, CEO Yoram Knoop said.
As the cards are now shuffled, there are 2 options: a hard Brexit or a postponement of the separation between the European Union (EU) and the United Kingdom (UK). The UK is the second largest sales market for animal feed group ForFarmers, where 1 million tons of feed was sold last year. Although the political negotiations lead nowhere, ForFarmers is waiting for a Brexit profit.
Taking advantage of chauvinism
"With a hard Brexit, it is likely that meat imports will become more expensive for the British. And since the UK is only 60% self-sufficient in meat production, British livestock farmers are expected to produce more themselves. All the more because 'buy British' among the British population is becoming increasingly popular," the CEO said. "Our feed sales can benefit from that."
ForFarmers produces almost all feed in the UK, so possible export barriers and customs zones have a minor effect on the listed group. "The harder Brexit is going to be, the better it will probably turn out for us," said Knoop. The day after the referendum, ForFarmers that statement already, and after 2 years of political turmoil, this expectation has not faded. "From the European mainland, we only export some specialty feed to the UK; due to the uncertainty we have temporarily increased those stocks."
Knoop expects it to take some time before British farmers increase production, because economic developments are virtually at a standstill due to the uncertainty. However, ForFarmers is investing heavily in the UK, Knoop emphasizes. "We are working hard to organize our activities there more efficiently and are therefore investing in the supply chain."
Trade spirit limits export damage
The CEO of ForFarmers acknowledges that a hard Brexit will most likely cause damage to Dutch pig exports. However, Knoop is convinced that the Dutch commercial spirit will ensure that new markets are found for the pork that is now sold in the UK.
That expectation is perhaps a bit optimistic, given that the British mainly import bacon. This makes the UK a specific sales market. About 15% of the total export of Dutch pork goes to the UK. In 2017, this amounted to an export value of almost €400 million.
Wouter Job
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