The Brabant feed company FransenGerrits has booked considerably less profit in 2023 than a year earlier. Turnover also decreased, according to the annual report that was filed with the Chamber of Commerce in mid-December. In the meantime, it has been announced that the factory in Veghel will be closed in mid-2025. The capacity will be divided among the other factories.
Turnover decreased by more than 10% in the last financial year, reaching €219 million. This is mainly due to lower raw material prices and also affected profit. The bottom line was down from €6,6 million in 2022 to €1,1 million. Director Huub Fransen responded by saying that raw material prices had a negative effect on profit last year, while in 2022 it was exactly the other way around. Furthermore, the figures speak for themselves, he says.
Appeal in 2025
FransenGerrits started a procedure against the government in 2023 for compensation for the Pig Farm Restructuring Subsidy Scheme (Srv), but was rejected. This ruling was appealed in early 2024 appeal registered, but so far without result. Fransen says that the hearing will not take place until 2025, probably even at the end of next year. He regrets the slow handling, because it cannot now be used for a political statement to the Minister of Agriculture, for example.
Factory in Veghel to close
Just before Christmas it was announced that the factory in Veghel will be closed from May. The location will then be used for housing. A maximum of 180.000 tons of pig feed can be produced in Veghel and this will be redistributed over the company's three other locations in the future, Fransen indicates. According to Fransen, the location in Veghel can be "financially valued", which will allow the company to absorb the decline in sales and also reinvest in the existing factories.
In the coming years, further shrinkage is in the offing due to LBV and LBV-plus. Although the exact impact on his company is still difficult to estimate, Fransen suspects a shrinkage in animal numbers of between 15% and 25%. Lower feed sales are an automatic extension of this. However, Fransen does not want to give up and thinks that the company can also achieve good results with lower animal numbers.
Interest in Koenis
In the meantime, FransenGerrits is spreading its wings to other parts of the Netherlands. For example, last year it acquired a minority interest in the animal feed company Koenis from Opmeer in North Holland. This is a regional player that focuses mainly on the North Holland market. Approximately 45.000 tons of compound feed for cattle, sheep and goats are produced annually. Construction of a new factory will start in 2025.