POV

Interview Linda Jansen

'Shrinkage in the sector leads to better pig prices'

17 August 2020 - Erik Colenbrander - 11 comments

After returning from vacation, POV chairman Linda Janssen sets out the agenda for the coming months: "I expect a 10% contraction in the pig sector, but it is now also time for pig farming to revitalize, through government policy instead of only shrinkage."

The issue of sedated castration could easily dominate the agenda in the coming months. Last week, Germany announced that it expects its largest suppliers of piglets, the Netherlands and Denmark, to work in the same way as in Germany, which will make full stunning from January 1, 2021 mandatory. The difference in cost price would certainly amount to €1,5 per piglet.

Is this a storm in a teacup or is the soup not eaten as hot as served?
"Consultation is certainly necessary. Until now, the starting point has always been that EU countries respect each other's methods. But apparently Germany now thinks differently. And make no mistake about it, the POV also wants to stop castration altogether in the long run. But the market has to be ready."

Speaking of animal welfare: how is the pig industry withstanding the unprecedented heat wave of the past few weeks?
"Last year the sweltering period started earlier, already in July. And we have learned a lot in a few years. I am proud of how much pig farmers have invested in heat stress prevention. There is now much more knowledge about adjusting the feeding regime and there is much more ventilation and cooling capacity compared to a few years ago."

And how is the transport to the slaughterhouse going?
"Significant steps have also been taken in this regard. The heat protocol has been tightened up in consultation with the minister and chain partners such as Livestock & Logistics. Conditioned wagons unload later than open wagons, to give an example. And of course, deliveries are not made in the hottest part of the day. "Transport also goes well on the road. At least, we are not aware of any problem cases so far. Piglet transport, especially over longer distances, is jeopardized at temperatures of 35 degrees."

Is the unprecedented heat wave contributing to the debate that prices have fallen sharply?
"That hardly plays a role. The corona infections in the slaughterhouses have set the price fall in motion. Fortunately, it is now stabilizing again. Initially, the pig market seemed to respond surprisingly well to the corona pandemic. But now China is using it in trade policy. you again, on how many aspects the price formation of China depends. As long as the Chinese forbid Western European slaughterhouses to export, the price level before the corona crisis will not return. But nevertheless I am optimistic."

Really and truly? But there are indications that the greatest impact of the African swine fever is behind us and the Chinese pig herd is growing again?
"My optimism is mainly related to the declining supply in the Netherlands and the better positioning of our Dutch pig and pork. Until now, a shrinkage of 8% was assumed as a result of the warm remediation of pig farming. But the shrinkage will probably become 10% because the government has reserved an extra budget. We call from the start that the government should not exaggerate the enthusiasm. It will soon become clear whether companies will actually participate. Now is the time for the signatures.

From now on it is also the time for the government to tackle part two of the pig farming vitalization plan instead of just talking about shrinkage and taking nitrogen space. Stimulate innovation, export and trade. Promotion of the Holland Pig is a promising initiative, in which the Ministry of Agriculture, Nature and Food Quality also plays an important role."

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Comments
11 comments
rule maker 17 August 2020
This is in response to it Boerenbusiness article:
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Too much to do with lto, you see it everywhere around you, the weaker the sector is made, so shrinkage, the smaller the revenue model becomes, the price is not made here, but elsewhere, shrinkage here only gives a higher cost price, so still a faster shrinkage, how stupid can you be as an advocate to spread this nonsense, I'm glad I'm not a pig farmer!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!
pete1 17 August 2020
Rules creator clearly has no interest in shrinking the livestock and therefore this response is most likely not sincere
Lever 17 August 2020
You're right Piet, you can see that the rule-maker is a free-rider and not an entrepreneur. Is probably typing this reaction while he has put his lease car that has been paid by the farmer once again by the side of the road to take a nap in a moment.
rule maker 17 August 2020
Haha, Pietje and liver, explain in more detail, I went into the facts substantively, you just blow what. Explain further, why is downsizing good?
field 17 August 2020
"You just blow what. Explain further, why is downsizing good?"
It does not seem to me that the pig price will respond to contraction. But different prices. At 25-30% shrinkage, the manure disposal costs go to zero. That's only about 10% of the production cost I think. But quickly a whole or half an annual income per worker. As an arable farmer, it is in my interest that there is no contraction. For many arable farmers, the purchase of manure is a plus of half an annual income. And all residual flows are best paid for by intensive livestock farming. What would be left of the beet pulp price without intensive livestock farming? And the balance of baking wheat cannot compete with that of feed wheat. Unlimited sales and almost zero quality requirements! I think I speak on behalf of all farmers when I express my great pride and deep respect for you. And on behalf of all feed suppliers, etc. Keep going guys!!!!
rule maker 17 August 2020
akkertje just agrees with me, the whole business model of agriculture is going to shit with downsizing, thanks
Subscriber
Gerrit 17 August 2020
Downsizing is fine, provided it is done as it is now through a voluntary purchase scheme. Pig sector is aging at breakneck speed.
Either way, the battle for space continues. Nature, asphalt and construction continue to make space for supper.
Fewer animals means less manure and greater competition in the periphery.
field 17 August 2020
"akkertje simply agrees with me, the entire business model of agriculture is going to hell with shrinking. " Well, shrinkage is not always unfavorable at all. The opposite is true: for decades, agriculture's mantra has been that the ability to have growth is sacred. Land-bound (as in Dld) would limit the development space and is "successfully" blocked. And who does not remember the night of Braks? A stop was announced by the minister on manure space and many town halls in the south were open until 12 o'clock in the evening so that farmers could quickly coat a lot of manure. Laugh right!?! Because growth would reduce costs. The agricultural lobby has systematically opted for expensive technical solutions in order to give up zero development space. Expensive solutions with a mega increase in the cost price as a result.
Subscriber
BRAVE BELGIUM 21 August 2020
what will all the suppliers do , the revenue model will be removed there , not with the stayers , they will benefit from it , mind you , you and I work on the world market , peaks and troughs ,
WHY does shrinkage increase the cost price, explain to me?
rule maker 22 August 2020
look what happened to the beef bulls, 30 years ago there was a bull slaughterhouse in almost every city, where do you have to deal with a beef bull today, it has been shown exactly what happens if the sector shrinks, then the sector becomes all the way out of the country!
Joep 26 August 2020
Suppliers have been abroad for decades. Don't worry about that at all. They have earned the profits from the Dutch farmer and invested abroad with the Dutch farmer's competitors. As a result, we now suffer so much from those competitors from abroad, so we are now talking about shrinking the livestock in order to release the pressure a bit, so that the cost price for the Dutch farmer can fall.
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