ForFarmers

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Analysts gloomy about ForFarmers

6 August 2019 - Wouter Baan - 37 comments

In the run-up to the half-year figures that ForFarmers will present next week, analysts at KBC Securities have adjusted the investment advice. The price target has also been lowered.

The Belgian KBC Securities expects the outbreaks of African swine fever have a negative effect on the pig sector in Europe. In recent weeks, several large pig farms in Poland and Bulgaria, among others, were affected by the animal disease. 

Lower price target
Although ForFarmers in Poland is mainly active in poultry feed, the bank sees reason to adjust the buying recommendation from 'accumulate' to 'hold'. This means that the bank advises investors not to buy or sell shares. Before this, the ForFarmers share had a positive buy recommendation.

The price target has been reduced by €1 to €7,50 per share. On Monday, August 5, the share closed at €6,82. More than 1 year ago, the share was still above €12.

Lower profit
In addition to the troubles surrounding African swine fever, KBC Securities expects the feed group to continue to suffer from the drought. This cut last year's profits, while ForFarmers already had a profit warning has issued.

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
37 comments
leo 6 August 2019
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/varkens/ artikel/10883563/analisten-somber-over-forfarmers]Analysts gloomy about ForFarmers[/url]
drought and diseases on me hula caterpillar never enough you mean
did not 6 August 2019
The big guys are gone!!! They saw it coming!!
Bob 6 August 2019
If a bank is negative, you have to be right there.
People of the bank are not entrepreneurs!!!
jip 6 August 2019
Feed factory managers are not entrepreneurs either. For farmers is a sinking ship. Used to parasitize the peasants. Those times have been.
Kees 6 August 2019
Glad I'm gone, 2 euros per 100 kilos are too expensive. And then all those nonsense tricks like Vida etc. just to cover up the mediocre feed quality.
meatball 6 August 2019
was known indeed high lords away. share drops like a stone.
Erik 7 August 2019
The first two months they provide good food when they have just switched to them, after that the quality drops like a stone and they come to talk to you about all kinds of disease problems.
Jos 7 August 2019
Eric wrote:
The first two months they provide good food when they have just switched to them, after that the quality drops like a stone and they come to talk to you about all kinds of disease problems.
Feed suppliers like that things just don't go well. Then farmers are more susceptible to trying marketing feeds should solve the problems. For example, my feed supplier once came to reset my ventilation system (that should lead to better results), which resulted in stress for the piglets.

At the kitchen-table conversation a month later, he suggested that they be given anti-tail bite food. When I told them that was not necessary because a few days after the previous visit I had reset the settings of the climate computer to my own settings. He moved on to another topic of conversation.
internal spy 7 August 2019
In the time of Jan Potijk and Eddy Kemink, the information officers were brainwashed with cult-like sales techniques based on the American model. Everything in the information structure was changed in order to get as much money out of the farmers' customers' pockets as possible. Farmers who were in worse shape deliberately increased their margins and increased the frequency of filling the bulk silo. Many customers have really been destroyed by this in a decades time frame. I'm just starting to get excited about the malpractice of ForFarmers. Also about the purchasing policy of that sick American sect.... Unbelievable that they could work like this for years.
Vector V 7 August 2019
the value of this stock continues to fall and is now 4.79.
avoid like the plague!
no growth,
NLissinkingship 7 August 2019
Call: potential stoppers in pig farming, etc., postpone your strike of your agricultural company for a while!

Wait until 2020 to read my website on my political solution to a new global agricultural system!

I refer to the scheme below as an example. Also the other livestock sectors, please hold off with companies!!!
================================================== ======
The Subsidy Scheme for the Remediation of Pig Farms (Srv) will be opened later than foreseen. It will not be August 15, but only sometime this fall. That is what Minister Carola Schouten of Agriculture, Nature and Food Quality (LNV) has decided. The warm remediation scheme still has to be approved by the European Commission. It must assess whether the scheme falls under state aid. Once the state aid approval has been obtained, the scheme can be made final. The aim of the scheme is to reduce odor pollution in livestock-dense areas in the short term. Pig farming locations that cause odor pollution for local residents and who want to stop may be eligible for the subsidy. A total of 180 million euros is available for pig farmers who want to stop.
================================================== =====


Guests, come on! laterrrrrrr
realist 7 August 2019
So.... have all the jealous Agrifirm farmers been able to have their say? †
At every feed supplier you have to be strict and monitor your own return
Pete 7 August 2019
In the FF sales we were allowed to spend one euro per 100 kilos on guarantees with customers. Because some customers never claimed, we were allowed to go up to 2 euros with others, 600 euros per full load of feed. This is already included in the feed price by default. The Frievars etc. as an organization receive this 600 euros per load and can thus spoil their loyal farmers. I don't know if it works the same for others, but the margins are sky high and no information officer costs less than a ton a year.
of platings 7 August 2019
Pete, has been known for a long time. De Heus is not a multimillionaire because of the loss. The problem is that there is no competition here (just as with the few slaughterhouses as yet). I deliberately say no. They all have brand new bulk trucks, they all drive expensive lease trucks, they all stand there staring stupidly at the expensive fairs, they all have very expensive house papers, etc. etc. Agruniek Rijnvallei has 240 employees, of which 120 have nothing to do with production has to do???????? Sad but true. And no board that intervenes, that's the worst. The money laps against the baseboards.
avenue 9 August 2019
correct plating,
There is no competition in NL.
Abroad (Germany) is the only competitor of the NL feed farmers... So if you want to play or compare a few feed farmers, you have to involve a foreign (German) feed farmer. If you don't, you won't get much further.
Good luck.
Jan 9 August 2019
Have a few percent of Premix come from Germany or Belgium and the rest from separate raw materials. Costs a ton of investment, but in a year you will also lose that in margin for the flour farmer. You have your destiny in your own hands.
of platings 9 August 2019
Jan, that is unfortunately, I consciously say unfortunately, not for everyone. Can only be realized with new construction, otherwise much too much breaking (cdi) and often you are small in numbers.
avenue 9 August 2019
John, that's not even necessary...
Just feed then you also grab 3 to 5 euros.
Additional feed 4 to 8 euros, and I'm talking about fattening pig feed.
Piglet feed is even more interesting.

Farmers look further than in the Netherlands.....

And then they say that they are leading the way in Nl...... just a joke....
fabiola 10 August 2019
@ Jan
premix in Belgium, calculated on the end feed
is almost the same price for all lots
whether you work with 2.5% OR 3% OR 2.8%
advice to me is to buy in the Netherlands
those fixed telephone connections between all kinds of parties
still seems to work
how much does a premix on the final feed cost????



Dirk 10 August 2019
Fattening pig feed from loose raw materials costs one euro above the wheat price, so today 19 euros. Premix and soy are more expensive, everything else is cheaper than wheat. Start feed 23 euros and a total feed costs 50 euros per pig.
pig farmer 10 August 2019
@dirk, liquid food?? or grain mixtures??
Dirk 11 August 2019
Dry food, 2% premix and 7 separate raw materials. So 8 silos, a mill and a mixer, that's not too bad.
pig farmer 11 August 2019
@Dirk That's not too bad, is the rest not so bad in terms of growth, segregation, everything in crumb/grain form?
Joost 11 August 2019
Premix, 8, silo, ibt, crumb, soya, belgian, everything!, dry and loose. I find that not too bad in relation to leasebak and staring ahead. But yes they are scammers. And then about my ruffle. Also. pigs.
William Bruggink 11 August 2019
German starter feed 23 euros and growth feed 22 euros.
You have to grind and store cheaply.
pig farmer 11 August 2019
@wim, what's the big difference then???
5-6 euros!
John 11 August 2019
The problem is spending way too much money to get that extra 20 grams of growth
Dirk 12 August 2019
That's right Wim, although I do have the experience that you have to feed German intermediate feed to the end (Rohtkotter/Emsland) to get the same results as your own final feed. For other small locations, sometimes buy on your own recipe for raw material quotations plus two euros. The biggest advantages can be gained from making sow feed (4-5 euros) and piglet feed (8-10 euros) yourself, but the kilos are much less than with finishing pigs.
William Bruggink 12 August 2019
That's right Dirk, that's how it works
Just to be clear, had Ew and
d.lys. have to add.
Also applies to making your own food that you do put Ew and protein in it that should be in it.
Did a feeding course from My Feed, actually a mandatory course for every pig farmer.
Then you will understand.
Starfood is therefore 1.10 Ew and 9.2 d.lys.
So growth is 1.09 Ew and 8.2 d.lys.
Pace gilts/secures.
fabiola 12 August 2019
@wim
theory and practice
feed is more about digestibility and thus converting into meat

just ask for a quote in different countries, from the same
composition proposed by you

you come out at 1.10 once, other times at 1.09
raw material feed tables are used differently everywhere
so food can never be compared, never
which matrix do you use?
if someone pays feed of 20 euros per hundred kilos
and another eg 21,5 it may be that the end result
the same
I think it is possible that, for example, feed of 23 turns out cheaper than 19
although the VC should already be 400 gr better


Jan 13 August 2019
Fabiola can start working in the feed industry in no time, they have grown big with fog curtains. Feed is something very simple until grains are replaced by sludge.
fabiola 13 August 2019
@Jan
I'm just like you self-mixer jan
I only feed grains and soya just like you
I am just like you looking for an affordable premix
BUT
I don't make feed for 19 euros per 100 kg
that doesn't work with grains alone
BUT
men VC is tight
success in what you do

VV 14 August 2019
6.55 now:sliding to...??
meatball 14 August 2019
4,0 euros is the next barrier. it's no different.
fabiola 15 August 2019
message for the above company
every pig farmer knows that premix also earns a lot of money
every size pig farmer knows that a premix is ​​best purchased through size guys, purchase quantity gives purchasing power
they will make you a supplementary food with a lot of lime and salt
free advertising is not the right way here
you can always put a standard formula on the website
with a price and mixing advice
BUT that information is free

are you a reseller with standard premix
or premix manufacturer
Cees 15 August 2019
It never hurts to inquire. Calling around regularly and switching once is always better than sticking with the same supplier.
French 15 August 2019
For 98% of your feed you are hardly dependent on the feed industrialists, making agreements within Nevedi. This is different for the last 2% premix, a solution has to be found for that. Until then, I prefer to buy these in Germany on prescription.
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