'Plenty of future for the Dutch pig sector'

Boerenbusiness is 10 years old this year. As part of this anniversary, we look back and look forward to important events in the sector. Which developments play an important role and what should we prepare for in the coming years? Today a conversation with Huub Fransen, director and owner of compound feed company Fransen Gerrits.

Working from home a lot and observing the corona measures is also an issue at compound feed company Fransen Gerrits. The effects of the corona crisis are clearly felt on the pig market and the reorganization of pig farming also raises concerns. Nevertheless, Fransen is positive about the raison d'être for those staying in the sector.

How has the function of feed supplier changed in the past 10 years?
"Over the years, this has become increasingly professional. Agricultural entrepreneurs have become increasingly critical and also expect added value. A feed supplier must also be able to optimize a company by means of the right knowledge. I think that the need for in-depth knowledge about how pigs The best way to feed has increased. In addition, companies are getting bigger and there is a greater need for knowledge and advice. Feed suppliers are approached in a more business-like manner instead of just on the basis of a good relationship."

To what extent have by-products become more important over the years?
"If you feed by-products in a good way, it increases efficiency. I think more by-products have been added, although that is leveling off now and there are not so much more large flows of new by-products. The by-products have an equally important share in pig feed as a few years ago, the really big steps were made in the 80s and 90s. However, the share seems to be increasing somewhat and the quality has improved. In the context of circularity, the importance of by-products.”

Are you experiencing the direct consequences of the corona crisis and what do you expect from this in the near future?
"Like other entrepreneurs, we naturally experience the consequences of the corona crisis. The direct consequences are first of all the corona measures, such as keeping your distance and staying home in case of a cold. Meetings are also cancelled."

"Our pig feed turnover has not been directly affected by the corona crisis, although we are affected by the lower pig prices. Our customers are affected by this and indirectly so are we. The closing of slaughterhouses was followed by the oversupply of pigs. This led to heavier animals, pig farmers may therefore opt for other feed."

To what extent are you concerned about the future of Dutch livestock farming?
"I am mainly concerned about the approach of the government. Their view on livestock farming is not positive and they mainly want to reduce the sector instead of optimizing it. The restructuring scheme reduces the market and that is of course not pleasant for us either. I especially hope that the government will also see the usefulness of pig farming. They are now mainly looking at what can be achieved with the remediation, but they should also look at the possibility in terms of technical improvements. We can achieve a lot through optimization if it It's about environmental safety, sustainability and animal welfare, while at the same time preserving the livestock, so the importance of pig farming in the economy and the export interest can simply be preserved."

What is the raison d'être for those who stay in the sector, and where do the opportunities lie for these entrepreneurs?
"The sector's raison d'être is the production of good food against the preconditions of society. Feed suppliers can add value here by innovating and optimizing services and products. For example, pork is produced and exported efficiently. The Netherlands scores well with regard to pork exports. within Europe and that is also the raison d'être of pig farming, and thus of the feed industry at the same time."

"We have been around for 123 years now and we certainly have no plans to stop. We are one of the larger family businesses and would like to maintain that position. Despite a contraction in the sector, we want to continue to increase our market share. the sector needs a feed supplier who can optimize their business with knowledge. If customers are successful, then so do we, the same is true the other way around. This mutual dependence is also positive, because it keeps things sharp."

Chanti Oussoren

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets.

c.oussoren@boerenbusiness. Nl

© 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.