Heath horse

Interview Tiny Shepherds

Heihoef wants to take pork out of anonymity

18 September 2024 - Matthijs Bremer

Supermarkets are increasingly selling products under their own brand name. Meat was one of the first products to set this trend. This product group has been treated as a basic product with little added value and little experience for years. That does not bode well for the farmer, according to Tiny Schepers of Heihoef. According to him, there is only one way to differentiate, and that is in the area of ​​price. He believes that the system has become very efficient, but has lost its robustness. Schepers believes that it can be done differently.

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Heihoef aims to get pork out of this anonymity by building a brand. The company believes that you can build a successful brand by making a distinctive product that focuses on quality and taste. In this way, you build a bridge between the pig farmer and the consumer. Heihoef believes that in this way, farmers can break free from the downward spiral that has characterized the pig market for years.

Consumers are used to buying meat anonymously. Isn't it difficult to convince consumers to choose branded meat?
"The current system in which products are marketed to consumers makes this a major challenge. In addition, four slaughterhouses currently determine how the Dutch consume pork. Yet there are more than enough opportunities. People always talk about the consumer, but the consumer does not exist. There are different target groups and some of these consumers are becoming more aware of where food comes from. As a result, the demand for regional products is growing and the target group we want to serve is larger than we can supply. This is largely due to the growth of alternative sales channels. 70 years ago, it was very normal for people to get their eggs, meat and milk from the farmer. Due to the rise of supermarkets, the supply has rapidly become anonymous. You can see once again that everything is cyclical, because the trend is now completely turning around. You can see this in the growth of farm shops and other alternative sales channels."

"Perhaps even more important is that supermarkets are also increasingly putting regional products on their shelves to distinguish themselves. In this way, supermarkets want to commit themselves to the region. Until recently, supermarkets only did this by, for example, sponsoring a local football team. But regional products are playing an increasingly important role in this strategy. Our meat is also available in supermarkets in the area. That meat is somewhat more expensive than the anonymous meat, but it sells very well because it is recognisable and tastes better. We see that consumers are making plenty of repeat purchases as a result."

Heihoef's starting point is that pig farming has become less robust due to the focus on efficiency. What do you mean by that?
"The pig sector has innovated a great deal to work as cheaply as possible. As a sector, we have become very good at producing at the lowest possible price. Ultimately, however, this efficiency has not only helped the pig farmer. The strong focus on efficiency means that pig farmers have to manage an increasingly larger and more complex company to stay in the game. Of course, efficiency is good in itself, but the question is: how do you make it sustainable? Then you also have to invest in things like robust animals. For example, you can now see this reflected in the costs of manure disposal. How do we restore balance to the manure market? This can only be done by investing in circular agriculture." 

"The development in the genetics of pig farming is also telling. It is fully focused on meat production and the highest possible number of piglets per sow. However, this has a downside, for example in the form of an increase in the use of antibiotics. We cannot ask an infinite amount more of the animal. We should now invest in more robust animals, which ultimately yields a better return. Research by DLV shows that reducing production by 10% to 15% yields a better revenue model. As Heihoef, we are therefore focusing on this."

How can setting up a concept break through that focus on efficiency?
"Because meat is usually sold anonymously, there is only one aspect in the conventional pig farming sector where you can distinguish yourself and that is price. Because of this anonymous sale, pigs are actually traded in a strange way. The buyer makes the invoice and the market determines the price. Outside the agricultural sector, you don't see the customer making the invoice anywhere. As a result, a pig farmer, regardless of his costs, has no control over the prices. With our brand concept, we build a connection with the consumer and we turn the chain around step by step. This ensures that the cost price plus a margin is paid. This is a long-term process, but ultimately makes the sector more future-proof."

"We do this by targeting our brands directly at the consumer. Taste comes first. To obtain the best meat quality, we use the Duroc pig. This gives much tastier meat. In addition, we focus on a sustainable, sustainable concept. This is becoming increasingly important to market parties because the CSRD regulations require this and it is also increasingly appreciated by the consumer."

What is your target group?
"We find target groups that appreciate taste interesting. A large-scale study has shown that two types of consumers have taste as their main purchasing motive. One of these is the older target group. This group finds the quality and taste of the products important, feels a bond with the farmers in the area and is also willing to pay for it."

"Flexitarians are also a target group. Of course, this is a group that is rapidly gaining in importance. Many people think that the future is plant-based, but I do not believe that we will all be eating vegan in the future. We simply need meat because it contains building blocks that are essential for a healthy body. Meat plays a very important role, especially for growing children, pregnant women and the elderly. We need to explain better to these consumers that animals play an important role in a circular food system. There is potential there, because pigs are circular par excellence. No animal uses residual flows as well as the pig. In addition, the animals produce manure, which is necessary for arable farming. People who focus on plant-based often do not realize this."

Your proposition to the consumer is clear. What do you have to offer pig farmers?
"What we have to offer is that we organize a chain from farm to fork. In our chain, all links are represented, from the jar of sperm to the ready-made meal with pork or, for example, a dried ham. We pay a surcharge for the pigs that meet the requirements of the concept. In addition, we offer pig farmers support in their business operations. Being a pig farmer is quite something. You have to build a stable, buy animals, keep them healthy, insure them, arrange financing, manage personnel and oversee the purchase and sales. You have to be active 24 hours a day."

"It is almost impossible to do all that well as one person. That is why we lend a helping hand. We buy the feed at competitive prices for our participants, arrange the supply of the piglets and support with healthcare. We recently entered into a partnership with Het Circulaire Varken, in which the Stichting Natuur en Milieu is active, among other things, in making pig farming sustainable. In addition, all participants are connected to a data system to optimize the result. In it, we compare the performances of pig farmers and participant A can see from participant B how many piglets he weans or how fast his fattening pigs grow, which results in the feed profit figure. With this, we investigate why one participant does better than the other. We share this knowledge with all participants, so that we can learn from each other."

Concepts generally have strict extra-legal requirements such as lots of extra scratching space or an outdoor run. How does that work for you?
"We have consciously chosen to limit the additional requirements. We will only really increase the requirements if the buyer is prepared to pay for them. It is irresponsible to incur higher costs before the sales have been arranged. If you ask participants to completely redesign their stables or build new stables, you are asking far too much. Such large investments are a deterrent, because the pig farmer then has to take enormous risks."

"In addition, the conventional stable is more sustainable in terms of emissions. For example, with an organic concept you need a large run. It is very nice for the animals to be able to root around in a mud pool outside, but that is not sustainable. If you keep pigs indoors, you can collect manure, purify the air and remove particulate matter. Of course, that is not possible outside."

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