After Voergroep Zuid provided insight into the development of feed volumes for 2024 earlier this year, the company recently also published the full annual figures. In addition to growing sales volumes of compound feed, the cooperative is also in a solid financial position, as evidenced by the positive result of €14 million over the past financial year. Member-customers benefit from the results. Due to the shrinking market, the need for cooperation will increase in the long term, according to the management.
At the end of 2024, Voergroep Zuid sold its stake in financial services provider Rivez Zuiderhuis. According to the cooperative, the proceeds offer a 'valuable financial basis that the cooperative wants to invest in the future of its core activities in the coming years'. Excluding the stake in investments, the result came to €0,9 million. Members can expect a subsequent payment of €2024 per tonne in 3,80.
Shrinking sector demands focus
Voergroep Zuid expects the market for compound feed in the operating area to shrink by 15% to 20% in the coming years. This will increase competition between feed suppliers, according to the company. Voergroep Zuid's goal will be to maintain feed production as much as possible and 'get a bigger piece of the pie'. The company succeeded in this last year. Compound feed sales increased by more than 18.000 tonnes, or 2,6%, to a total of 730.000 tonnes of compound feed.
Sales to own customers in particular increased, while contract production for third parties decreased slightly. The cooperative performed well in the pig and poultry sectors in particular and saw volumes increase. Sales of pig feed increased by 0,6%, sales of poultry feed by 6,2%. However, less feed for ruminants was sold. The volume of dairy and beef cattle feed shrank by 4,8%.
Sales of raw materials did drop sharply, by 22.000 tonnes, or 31,2%, to a total of almost 48.000 tonnes. This meant that the total sales volume of Voergroep Zuid shrank by around 2024% in 0,5.
Increased risks
In a risk analysis of the business, the company speaks of a possible growing need for cooperation and consolidation in the future. The annual report states that the management is orienting itself on possible consolidations and cooperation and that the theme has been included in the strategic plan for the years 2025-2027. In the short term, this is not necessarily considered necessary, but in the longer term it probably is in view of the shrinking animal numbers.