Interview Roy Nilesen
'FDF is now making revenue model top priority'
Farmers Defense Force presented a so-called 'pig team' this week. This new team, led by Roy Nillesen, focuses on 'better cooperation in the chain'. The key to a better return: more value creation and cost reduction. Nillesen explains how the plan will be implemented in practical terms. "The number of pigs is shrinking, other parties in the chain also see the importance of guaranteeing input."
Nillesen has a consultancy firm and is therefore internationally active in Europe, Asia and South America. He now uses the experience and knowledge gained to give shape to the initiative. Although the Producers Organization for Pig Farming (POV) is working towards the same goal, Nillesen states that he does not think that the organization has failed, or that other promoters are competitors. "Let's be clear, LTO Nederland and the POV have done a good job, but they have also had a lot on their plate. We are now making the revenue model number one priority and can fully focus on that. Many pig farmers are members of Farmers Defense Force, which means we want to do more specifically for this group."
The aim is a fair price for farmers through better cooperation. What should this look like in concrete terms?
"We are already well on our way and have concrete plans. We are discussing this with several chain parties. We hope to organize a members' meeting in the short term - certainly this year - in which we explain what our vision and working method will be. cannot say too much about the implementation, the vision is that we must work closely together at the chain level. In doing so, we must (in terms of company form) go back a hundred years in time. We are working towards cooperative forms of business in which the returns in the chain are also be shared by the farmer".
Which chain parties are you talking to?
"At the moment I cannot name names. It concerns parties in the pork chain, including slaughterhouses."
Hasn't there been talk about more returns on the farm for decades?
"Then you can also ask yourself whether other parties are choosing the right direction. The other representatives have done good things and we certainly see opportunities to collaborate with those parties. However, we think that - when it comes to the position of the farmers in the chain, distributing returns and remediating costs - a different approach is required. We have now gathered people with experience in the field. For example, in Peter Koning we have someone who knows how the hares run in the slaughtering world, which is necessary in order to come to concrete agreements with the other chain partners."
What do you mean by reducing costs? Is that related to the government?
"No, that's not what I'm referring to. The government doesn't have much to do with it. It's about reorganizing expenses and costs in the chain, at suppliers and customers. That's why we have to go back to the past, a cooperative model in which euros at the Take the Danish Crown as an example. This group now pays back almost €20 per pig to suppliers. That is an amount of tons for an average pig farm. So pig farmers benefit from the success in the chain. That is the difference: either we do it together for free, or that we develop companies sustainably. It is important that the profit made in the tent is returned to farmers. In addition, current 'modern' cooperatives have become too large organizations with many management layers and associated costs. must and can be more efficient."
Are companies in the chain open to this?
"Companies are certainly open to it. We were able to read in the Rabobank report last week that the shrinkage of the pig sector also affects our customers and suppliers. These parties also foresee that making agreements now can mean that they can insure themselves. of work in the future. That is why it is also the right time to discuss this. Look, we have enough pigs now, but that will look very different in three, four or five months. This also shows that we have each other really necessary. We can bundle our offerings, which makes us a discussion partner that matters."
Rabobank also mentions that contraction should ensure a better balance between supply and demand? In light of the current price decline, isn't a contraction in production the key to a better return?
"No, I don't believe that. I don't think that if we realize a 20% contraction in production here, the margins will improve. Together with other parties, we must focus on added value. Think of the production of pigs that are guaranteed lifelong antibiotics free. I have seen in my work that there is a market for it and that people pay for it. There is a lot involved in coordinating these matters as a chain and to be able to provide such guarantees. Only a new cooperative cooperation model can control and return returns to our yards, initially on the yards of members of FDF."
Steve Wissink
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