News Agribusiness
Animal feed companies demand compensation for shrinkage
Livestock feed companies FransenGerrits and P. Bos Veevoeders have started legal proceedings against the state. They want to be compensated for the negative consequences that the stopper scheme in pig farming has for them.
These animal feed companies generate almost all of their turnover from the Netherlands, mainly from pig farming. Due to the shrinking pig numbers, they are now missing out on sales. According to FranssenGerrits, this amounts to 10% of sales. This is equivalent to 50.000 tons of feed, which equates to €20 million in lost turnover. They believe that the fact that the companies are not compensated for this is disproportionate. With the Subsidy Scheme for Restructuring Pig Farms (Srv), a total of 580.593 pig units have been removed from the market. The pig herd in the Netherlands has fallen from more than 12 million to 10,9 million in recent years. The downward trend is expected to continue.
'No entrepreneurial risk'
The animal feed companies are assisted by the law firm Defares in Amsterdam. Lawyer Kenneth Defares late Boerenbusiness know that an oral hearing in the case took place earlier this week. The verdict will most likely be pronounced on November 15 by the court in The Hague. Defares does not want to anticipate the verdict yet. However, he believes that there is no entrepreneurial risk in this case. "Pig farmers and animal feed companies operate in the same chain. Then it cannot be the case that one party is generously bought out, while the other party is left empty-handed," says Defares. Other animal feed companies may join the procedure.
Wouter Job
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