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Wednesday 20 March 2019

More renovation- than new construction plans in Dutch pig- and poultry farmers

The percentage of Dutch poultry farmers with plans to renovate stables has increased in 2018 with respect to 2017. In contrast, pig farmers have less plans to invest in their stables. Both sectors report more renovation plans than new construction plans.

These are the results of the LivestockScanner conducted by agrimarketing- and market research bureau AgriDirect. During this assessment a total of 3.200 Dutch pig farmers (with a minimum of 100 breeding sows and/or 500 meat pigs) and poultry farmers (with a minimum of 10.000 laying hens, 15.000 broilers and/or 5.000 other poultry) are approached by phone with questions on company activities, future plans, and investment plans.

Investment plans stables pig farmers decrease
After the investment plans of pig farmers in stable in 2017 had skyrocketed, they decrease again in 2018. New construction plans go down from 15.9% to 14.4%. However, the percentages remain significantly higher than in 2014 till 2016.

The same trend can be seen in the renovation plans. After the percentage had doubled in 2017, it decreased again from 18.2% to 14.9% in 2018.

Renovation plans predominate
The renovation plans of poultry farmers have been increasing in the past few years. In 2018 this rises again with 2% relative to 2017. In the period of 2014 till 2018 the renovation plans have almost tripled. In contract, the new construction plans have decreased with 1.6% relative to 2017.

This is the first time that the percentage of renovationplans in poultry farmers is higher than the percentage of new construction plans. In pig farmers this has been the case since 2017. This trend indicates that pig- and poultry farmers are expanding less, but are investing more money in changing or modernising production processes.

Reaction Eric Hubers, chairman Poultryfarm at LTO Netherlands.
“New construction and expansion are obstructed by the high price of production rights. In my opinion, the rise of renovation plans can be explained by the insecurity of poultry farmers about the future among others. Poultry farmers therefore decide to renovate their stables rather than construct a new one, because constructing a new stable may be too big of a risk, but at the same time farmers need to keep their company up-to-date (for example with respect to reduction-demands of fine particles and ammonia demands). Therefore, renovation is the most popular strategy to meet all requirements.” 

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