Nevedi director calls on departing members to come back
Henk Flipsen, director of Nevedi the Dutch trade association of the animal feed industry, hopes that Agrifirm and ForFarmers, 2 of its largest members which have recently resigned, will still come around. ‘Working together is now more necessary than ever in the feed industry.’
His response to the departure of Agrifirm and ForFarmers is actually a direct appeal: “Think again. Come back, we need each other!” Henk Flipsen is convinced that the animal feed industry needs a collective: one discussion partner for government and chain parties. “In this sector, no player is so dominant that they can go it alone. Neither of the companies are as large as Vion in the meat sector or FrieslandCampina in the dairy sector, and even those companies opt for collective working in the COV and the NZO.”
Nevedi has 81 members currently and represents 95% of the feed turnover in the Netherlands. So almost 100% coverage. You would say that the world wouldn’t collapse with 2 quitters. But ForFarmers and Agrifirm are among the top 3 Dutch feed companies, and their departure means a huge loss.
I quietly hope that both companies will still endorse the importance of a collective and will join it again. That we can make changes to it. After all, all members want an efficient organization that costs as little as possible.”
Nevedi will continue
Yet Nevedi will not collapse, Flipsen emphasizes. According to him, the remaining 79 members still represent more than half of the feed turnover. “Nevedi will continue. Fragmentation is not good in a period like this when working together is so important. More than ever, there is a need for structured consultation and joint action.”
A lot of pressure on the market
According to the Nevedi director, the step fits in with the spirit of the times. “There is a lot of pressure on the market. Then companies start thinking: do we have time for collective action, which always has a delaying effect?”
Yet ForFarmers’ termination was really unexpected. Agrifirm had known for some time that there were hesitations, Flipsen explains. “But in 2023 we established a 5-year plan with an accompanying budget. Then this step comes as a surprise.”
Terminations generally due to mergers
Terminations are common, but in recent years they have always involved companies that had merged or been taken over. Flipsen: “Now something completely different is happening: 2 major members believe that the effectiveness is not great enough.”
Flipsen: “I have silent hope”
An administrative working group has now been set up to examine the options available to accommodate those who leave. “I quietly hope that both companies will still endorse the importance of a collective and will join it again. That we can make changes to it. After all, all members want an efficient organization that costs as little as possible.”
Agrifirm and ForFarmers give similar reasons for their departure. They believe that they can be discussion partners for other parties, such as the government. They also believe that the costs and benefits no longer outweigh each other. And ForFarmers in particular also says it is missing substantive key points, such as longevity and sustainability. Flipsen responded to this: “Nevedi is involved in topics in the field of animal feed. Manure processing is very important for the sector, but not a core activity for us. At the same time, the larger feed companies are involved in this themselves.”
