Medium-sized feeding cooperative also susceptible to shrinkage

The contrast between the sales figures of the large and medium-sized cooperative feed companies has been quite large in recent years. Major players such as Agrifirm and ForFarmers (listed on the stock exchange, but with cooperative roots) were confronted with significant shrinkage rates. Percentages that were greater than the market. Medium-sized feed cooperatives were the laughing third, because 'cooperative farmers' often feel less at home with private compound feed companies. ABZ De Samenwerking, AgruniekRijnvallei and Voergroep Zuid reported almost unreal growth figures of 2022% or more in 10, and sometimes welcomed hundreds of new members. AgruniekRijnvallei could no longer physically keep up with the growth in 2022 and was therefore forced to relocate part of the production elsewhere.

Choose by feeling
From a distance, the competitive struggle did not always seem to have so much to do with feed prices, but turned out to be mainly a matter of feeling for many switching livestock farmers. The idea was that the peasant language would still be spoken at medium-sized companies. This is something that cooperative directors are happy to claim in interviews. The interests of the Dutch farmer would be central to these companies, as the big boys had long since shifted their field of work abroad. This last point is mainly an image, because the Netherlands is still by far the most important market for both Agrifirm and ForFarmers.

Looking at the annual figures for 2023, the trend from 2022 will not continue. Both AgruniekRijnvallei and ABZ De Samenwerking recently reported a decline in sales figures. Although limited, it is nevertheless a trend break. Growing sales are stagnating, or - in other words - stabilizing. This is also how it is expressed by both cooperatives. The shrinkage is partly due to tightened legislation in poultry farming, which requires fewer animals per square meter. In the case of Voergroep Zuid it is different. It also reports an increasing sales figure of 2023% in 7, with the majority of it said to have been achieved organically. However, it seems quite a challenge to continue such growth.

ForFarmers and Agrifirm
In February, ForFarmers reported a significant volume decline of more than 2023% in the annual figures for 6. In the same breath it was stated that sales figures have not shown any decline since last summer. If this trend continues, ForFarmers could possibly report a small plus again in the quarterly figures in 2024, with or without the use of a leap year. The better sales figures are probably related to the new management, which again speaks the farmer's language and has left behind the negativity surrounding the company in recent years. In addition, ForFarmers makes no secret of the fact that they are competitive in terms of feed prices. 

Agrifirm's sales figures for 2023 will be announced later this week. A significant decline of 2022% had to be reported in 6, just like in the previous year. The figures for 2023 may be less negative, given that the competition from medium-sized feed cooperatives appears to be weakening somewhat.