Agrifirm’s CEO, Piet Hilarides, discusses market share challenges
Agrifirm faces a tough challenge in gaining market share within a shrinking market. This is the key issue confronting CEO Piet Hilarides. Since December, Hilarides has been leading the cooperative, and his internal message is clear: “We need to enter the market with a more positively aggressive approach to gain market share.”
On the 25 March Hilarides presented Agrifirm’s annual financial results to the members’ council for the first time. Unfortunately, the news was not positive: Agrifirm reported a net loss of €23.6 million for 2024, marking the second consecutive year of negative results. “The net operating result was negatively impacted by a one-time revaluation. It’s a disappointing outcome,” the new CEO admitted. However, he also offered an optimistic outlook: “We have confidence in the current developments. 2025 has started well, and the revaluation is behind us. Agrifirm remains a fantastic company.”
We need to enter the market with a more positively aggressive approach to gain market share.”
– Piet Hilarides, CEO of Agrifirm
Positive start to 2025 – Challenges remain
Hilarides expects Agrifirm to return to profitability this year. “That’s the goal, and I would be disappointed if we don’t achieve it.” So far, the first months of 2025 have been positive, he noted. However, due to the disappointing 2024 results, members will not receive any financial benefits or discounts this year. While he acknowledged this as disappointing, he emphasized that it was a necessary decision, which the members’ council approved on the 25th March.
A major factor in the 2024 losses was poor financial performance in some of Agrifirm’s foreign operations. Agrifirm operates production sites in 9 countries, and has joint ventures in 3 additional countries. Financial results were particularly weak in Poland, Brazil, and Belgium, leading to a €27 million write-down on these foreign business units.
Hilarides explained: “Every year, we must assess whether expected future profits justify the book value of these business units. In Poland, Brazil, and Belgium, we believe future profits will not support the previously recorded value.”
June deadline for Agrifirm’s strategic plan
Hilarides could not yet specify what this means for the future of Agrifirm’s international operations. The company is currently working on a 4-year strategic plan, which is expected to be finalised in June and presented to the members. This plan will also address the future of Agrifirm’s foreign businesses. “The reason we invested abroad was to generate additional returns for our members,” Hilarides explained. “That is currently not happening in all countries, so we are working hard to change that.”
But the challenge is not limited to foreign operations. Even without the €27 million write-down, Agrifirm would still have posted a loss of approximately €1 million in 2024. “We cannot ignore that. Other improvements are also necessary,” Hilarides acknowledged. In 2024, Agrifirm focused heavily on cost savings, and this will remain an ongoing effort.
Agrifirm looks to the future with confidence.”
– Piet Hilarides, CEO of Agrifirm
Driving growth with digital innovation
“We operate in an industry with very low margins, and our goal is to be the most cost-efficient producer,” Hilarides said. Agrifirm is heavily investing in digitalisation to improve efficiency. Despite the shrinking livestock sector, the cooperative aims to expand its market share. In 2024, both animal feed and crop sales volumes declined. To counter this trend, Hilarides plans to take a more proactive and aggressive market approach.
“There are fewer animals, but we want to grow within this market. We aim for better results, higher customer satisfaction, and increased market share.” One way to achieve this is through innovations, including a calculation tool to help livestock farmers improve their overall profitability. “We also need to listen carefully—perhaps better—to our customers and focus more on expanding our customer base,” Hilarides stated.
Despite the setbacks of the past year, he remains optimistic: “Agrifirm looks to the future with confidence.”
