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News Pig analysis 2019

'Giving pig farmers control in feed composition'

June 6, 2019 - Wouter Baan

More and more often 'food' and 'advice' are seen separately. The company SolFeed Feed Service from Sint-Oedenrode in Brabant also focuses on this way of working. It hopes to give pig farmers control over ration compositions.

You are a relatively new player in a saturated market. What is your approach?
"We are indeed a relatively new player, but I would not call this market saturated. The feed sector is changing, with production and advice being separated more often. SolFeed's approach facilitates this way of working. Based on us advice, the pig farmer chooses which compound feed manufacturer will produce the chunks," says Van den Elsen. Gloudemans adds: "We also have a large network of barn consultants, so we can also provide advice in other areas. We offer tailor-made service."

What are the benefits of separating feed and advice?
"With our way of working, a pig farmer regains control over his feed composition. We do not adjust the rations unless the customer asks. This leads to continuity in the barn, which benefits the technical and financial results," says Van den Elsen. Gloudemans explains: "Pig farmers in the Netherlands have relatively little feed knowledge, because the compound feed industry has relieved them of their worries for years. This has brought a lot to the sector, but we have now reached a point where an entrepreneur is becoming more focused on the feed price. we offer, gives the farmer tailor-made advice and feed."

How independent is independent feed advice?
Van den Elsen: "We get this question more often. In our view, it is independent that advice and production are separated from each other. The feed composition is therefore determined by the nutritional requirements of the feed specialist, and not by the purchasing positions of the manufacturer. Gloudemans adds: " Some compound feed manufacturers see us as a threat, but others see an opportunity in this concept. Thanks to our orders, they can maintain capacity utilization in the factory without having to pay all kinds of salespeople."

The administration of overseas soybeans is under fire. Is this justified, and are there alternatives?
"It is good that we are thinking about this issue, but many alternatives to soy increase the cost price. In addition, consumers are often unwilling to pay extra for the sustainability efforts of pig farmers," reports Van den Elsen. Gloudemans: 'We must not forget that the pig sector is already very circular, partly because of the use of residual flows from the food industry. In our advice we try to get as much usable protein and energy in the rations as possible from by-products."

What do you think the future of the compound feed industry will look like?
Van den Elsen: "The number of potential customers is decreasing, because the forecasts show that the number of pig farmers will fall to approximately 1.000. We expect more integrations and feed money constructions, but we also think that there are always entrepreneurs who want to remain independent. Our transparent way of working, makes chains possible without parties having to give up their independence." Gloudemans: "I estimate that about 10% of pig farmers use independent feed consultants, which means that we still have a market to gain."

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This article is an abbreviated part of the pig analysis of 2019. The subscribers of Boerenbusiness Pigs & Feed Pro recently received it. Would you also like to receive this magazine? Click here to become a subscriber and receive the magazine.

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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.

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