'Early anticipated war in Ukraine'

Arjen van Nuland has succeeded Martin Grift as general manager of AgruniekRijnvallei since September last year. As one of the few feed companies in the Netherlands, they still manage to grow autonomously. At the same time, times are challenging with the many bird flu outbreaks in the Gelderse Valley and the craze on the raw materials market due to the war in Ukraine. "Fortunately, we anticipated this at an early stage, so that customer stops are not an issue."

In 2021 you will have grown again in a shrinking market, according to the recent published annual figures† What is your formula for success?
"It is actually quite simple. We supply the right products at competitive conditions, supported by a good field service. They are our ears and eyes to pick up on signals that are translated into nutrition and the purchase of raw materials. We are not too big in this regard. , but at the same time we have enough scale. We also reap the benefits of strategic choices from the past, for example when we focused on organic, in which we collaborate with the cooperative De Valk Wekerom in Bio-NL. We are also strong in demand-driven chains. We are not a flat feed company that only supplies chunks, but we like to think along in the development of the end product. This appeals to many of our members, who often also participate in chain concepts."

The result, and therefore the supplementary payment, was lower.
"We are a cooperative and not a private company. So we operate on a non-profit basis. Moreover, we prefer to pay the benefit up front to the members through more competitive prices. In other words, it does not matter that the result is lower, because then the benefit lies with the member."

On to the current affairs. Many customers of your farmers in the Gelderse valley, where there are currently bird flu outbreaks. To what extent does this affect your business?
"In the first instance, it mainly affects the entrepreneurs who have been affected or have to be cleared. It causes a lot of tension in the sector. Internally, it ensures stricter working methods in terms of hygiene, especially in the field of logistics. Think of a single freight per customer, and disinfecting after each delivery. It also costs some turnover, but that is not a primary concern. However, it also has consequences for public support for the poultry sector. I am concerned about the public outcry about the culling and about the care about animal diseases. After the corona virus, people are more focused on animal diseases for fear of a new pandemic. Whether this is justified or not. A vaccine could offer a solution, because otherwise we will probably have the same problem next year. Unfortunately, it isn't there yet."

The war in Ukraine is also giving the Dutch feed sector headaches. How is the situation now?
"We anticipated an escalation in the Black Sea region early on. In January we already shifted the focus to other supply regions, in Europe and beyond. We also maintain larger stocks. As a result, we did not have to announce a customer freeze, unlike some other companies This does not alter the fact that there are concerns. Feed prices were already high and have now risen to a solid level. This presents major financial challenges for our members and should also lead to higher selling prices for the farmer. Fortunately, payment arrears are increasing with us Not yet, but for the time being there is no reason to expect a fall in the feed price."

You could say that you took office in dynamic times…
"Nothing more. It is special to step in during such a period. The corona measures were also a challenge in the initial phase. And then there is also the nitrogen dossier that will influence the livestock sectors. My personal motivation is to make a difference. I have a legal and business background. I graduated from the Ammonia and Livestock Farming Interim Act at the end of the 90s, so I can follow the substantive discussion. "This uncertainty is almost inhumane. The agricultural sector has been vital to transform, so just let it come."

Finally, about your factory in the middle of Barneveld, where you produce conventional and organic feed. The council sometimes calls out that they want you out of there. What is your position?
"Due to our organic growth, we need all production capacity, including the factory in Barneveld. We recently reopened the previously closed factory in Wichmond. This topic usually arises at municipal election time, as it was now. The discussion continues. however outside of us, we are not talking to the municipality. We do not want to leave here, and as far as we are concerned, we will still be producing here in twenty years' time." 

Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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