Feed group South sees compound feed sales increasing

While the number of livestock farmers in the Netherlands is rapidly declining, Voergroep Zuid has managed to continue to grow. In 2022, both the number of members and the volume of compound feed sold increased. Turnover also rose quite rapidly. Profitability is under some pressure, as appears from the recently filed annual report. 

Compound feed sales increased last year by more than 5% to 635.000 tons. Total feed sales fell slightly to 730.000 tons. This is because less was produced in contract production for third parties. The number of members grew by 69 to 604. Director Ronald van de Ven is pleased with this increase. According to him, the strategy based on gaining market shares based on feed quality is paying off. A few years ago, the cooperative saw a significant decline in feed sales in pig farming, but that decline has now been reversed.  

More turnover, less profit
Due to sharply higher grain prices, turnover increased by 25% last year to €311.000. This has also taken away some of the margin, because bottom line profit drops by approximately €1 million to €704.000. Voergroep Zuid does not use a supplementary payment, but did have one last year loyalty scheme rigged for loyal customers. €4 million has been paid out over the past four years. The ambition is to continue to pay out approximately €1 million annually to loyal members in the coming years.

Furthermore, Voergroep Zuid indicates in the annual report that it wants to scale up in circular raw materials with a low carbon footprint. The company also wants to support young farmers with business takeovers. Finally, it is striking that Voergroep Zuid has thoroughly comb through its workforce in 2022, as the number of FTEs has shrunk from 280 to 225.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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