The organic pig sector is on the rise. In recent years, an increasing number of companies opted for conversion. Why this growth and what does the future hold for potential switchers?
Despite the increase in the number of organic pig farms, the sector structure has not changed significantly. The total number of organic pig farms in the Netherlands has increased in recent years, as has the number of pigs on these farms. However, the total pig population has also grown, so that the organic share remains only a fraction of the total pig sector.
Figures from Statistics Netherlands show that in 2017 there were still 154 organic pig farms with a total of 91.340 pigs kept. In 2018, this number increased to 170 farms with a total of 96.989 pigs. The most recent figures are from last year. In 2019, the number of organic pig farms increased to 180 and 107.081 pigs were kept on these farms. This number seems high, but compared to the total number of pigs in the Netherlands (approximately 12 million), the organic sector appears to have only a small share.
Organic pork
The market leader in the Netherlands in the field of organic pork is De Groene Weg, a subsidiary of Vion. De Groene Weg does business directly with pig farmers from a demand-driven and closed chain. This year, pig farmer Hendrik-Jan van den Heuvel from Barneveld also signed his supplier agreement with the organic slaughterhouse. With this agreement, Van den Heuvel is the 100th pig farmer to supply pigs to De Groene Weg.
Van den Heuvel has opted for conversion, because the organic way of rearing pigs appeals to him. "When I took over the company from my parents, the switch from regular to organic was also discussed."
Why switch?
In recent years, a number of pig farmers have been faced with the choice of stopping, continuing and expanding their business or switching to organic. The reason for switching is mainly a conscious choice for a different way of keeping pigs, because there are entrepreneurs who feel less comfortable with the regular way of keeping pigs. In addition, the growing impact of public opinion probably also plays an important role. Consumers are increasingly critical of the way their food is produced and more and more consumers are willing to pay a premium for organic food.
Switching time
It goes without saying that the switch from conventional to organic is not completed overnight. The switchover takes some time and there is a waiting list. Pig farmer Van den Heuvel: "Our contact with De Groene Weg started about 3 years ago. Because there must first be space in the sales market, I was on the waiting list for about 1 year. After that we continued talking with De Groene Weg and the switchover itself took about 2 years."
Van den Heuvel has experienced the transition as good and is especially pleased that deliveries to the customer can be started, because that is what we have been working towards all this time.
Further development
According to Allard Bakker, General Manager of De Groene Weg, the enthusiasm of entrepreneurs is especially important in the switch. "During a conversation, it is about the ambition and passion of the entrepreneur. This is to discover whether the entrepreneur is suitable for working together in the De Groene Weg chain."
Bakker expects even more switches to organic within the chain. He calls it a continuous process and indicates that the market for organic is growing by 5 to 7% annually. This will allow the sector to continue to grow, but in total will remain small compared to the entire pig sector.
According to Bakker, organic pig farming in the Netherlands will continue to develop in the coming years. Both in volume, due to an expected increase in the number of organic pig farmers, and in a qualitative sense. "We want to maintain our pioneering role in closing the cycle and take further steps in this regard. We will also share the knowledge and experience we gain with this with regular pig farmers, so that they too can develop further."
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/varkens/ artikel/10886972/biologische-varkenssector- goes-further-growth]'Organic pig sector will continue to grow'[/url]