25 Rotecna World

ROTECNAWORLD NUMBER TWENTY FIVE 2015

SUMMARY TECHNOLOGY

BRACKETS, JOINTS AND FAST DOOR KIT, TOTAL SOLUTION FOR PANELS. FUTURENEWS

PRIVATE STORAGE OF PIG MEAT TO BEGIN IN JANUARY WITH IMPROVEMENTS PIGPRODUCTIONIN...

THE DIVERSIFICATION OF HIGH-QUALITY PRODUCTS, THE MAIN AXIS OF PIG PRODUCTION IN TAIWAN ROTECNANEWS

LETTERFROMTHEEDITOR

ROTECNA, 25 YEARS SOMETHINGABOUT

CATALONIA, LAND OF HIGH-QUALITY WINES AND CAVAS

Gener Romeu Rotecna's President

ROTECNA WORLD 25

SCAN ME WITH YOUR SMARTPHONE

ROTECNA

DOWNLOAD ANY APPS FOR READER QR CODE & VIEW ROTECNA.COM

DECEMBER 2015 EDITION: ROTECNA, S.A.- POL. IND. NAU-3, 25310 AGRAMUNT (LLEIDA) SPAIN DIRECTOR: GENER ROMEU EDITION/PRODUCTION/DESIGN: MONTSE GUERRERO EDITOR: TAMARA LOMBARDO TRADUCTION: CHRIS BOSWELL PRINT: IMPRENTA BARNOLA L-41-2007

DIGITAL VERSION / issuu.com/rotecnapress Rotecna's World's editors accept no liability for contributor's opinion.

We end 2015 in the midst of the uncertainty provoked by a scenario of oversupply of pig meat on the markets and prices under 1 euro per kilo/ live weight all over Europe. These prices had no been seen since 2007, which makes it easy to get an idea of the critical situation the sector is in. Thus, despite the good figures for production and exports registered this year, the sector has been unable to reposition all its supply in a market with such a high level of competition for sales, which has dragged prices down and caused important losses among livestock farmers.

On the eve of 2016, it remains to be seen what the new year holds for us, although the forecasts are not very good, as only a slight drop of 0.2% in production is envisaged during the first quarter, which will do little to help the market prices.

At the company level, we are not oblivious to what is happening around us, and that the current situation will probably slow down the building of new farms in the markets with overproduction. So, we have to to position and consolidate ourselves in new markets niches where there is still a shortfall of pork production, and thus, new farms to build and equip, as in the case of Asia.

In the year we celebrate our 25th anniversary, we trust in penetration into new markets and our bid to create new lines of business in the sector will help us to continue with the tendency of growth registered in the last 4 years. As a company, we have to adapt to the new situations. Renew or die.

Happy holiday season!

ROTECNANEWS

ROTECNA, 25 YEARS What were the first Rotecna products and what reception did they have in the sector?

GENER ROMEU: “WE WERE PIONEERS IN THE USE OF PLASTIC IN PIG FARMING”.

We began offering hopers and some PVC plates for piglets and the automatic feeding systems.

Gener Romeu in the office. Photo: RotecnaPress

A fattening hopper made from PVC tubes symbolises the basis on which Gener Romeu, a businessman from Agramunt, founded Rotecna.

Dedicated to the manufacture and sales of plastic equipment for pig farms a, Rotecna is nowadays, world leader in its speciality, with a presence in over 80 countries.

Why did you decide to create Rotecna?After 4 years selling all kinds of equipment for livestock farming, I decided to set up Rotecna on my own and focus on making my own products for pig farms. To begin

developing new products, we had a 1,200 square-metre warehouse in the industrial estate. Very soon, the need for more space led me to purchase a second building and so, little by little, we have extended the company to the area we currently, which is 56,000 m2, 25,000 of which are built on.

The great innovation of Rotecna was to make the equipment in plastic. Why did you choose this material?

Twenty-five years ago, all the equipment for pig farms was made

SOMETHINGABOUT...

of galvanised steel or concrete, materials that do not resist the corrosive conditions and wear on the farms for a long time, as well as being inherently difficult to clean well. Durability and hygiene were the two key factors behind the choice of plastic. On the other hand, injection-moulding techniques for the plastic enable versatility we need in the design of products to be more appropriate and efficient in the rearing and fattening of pigs. In this sense, we were pioneers in the use of plastic in pig breeding.

11 Denominations of Origin

Vineyards in the DO Costers del Segre. Photo: Celler Rubió de Sols

2

The growth in the company in terms of staff, products and turnover is the result of important decisions taken over these 25 years. What were the most notable decisions?

The first important step was the bid for internationalisation. At firs, we worked on the Spanish, French and Portuguese markets, but in 1993, I was invited by the ICEX (Spanish Institute for Foreign Trade) to attend an agricultural fair in Guadalajara, Mexico. I went to see what our sector

CATALONIA, Vineyards have been part of the landscape of many parts of Catalonia, where the vines began to be grown by the Greek and Roman civilisations. Since then, vines, vineyards, wineries and wines have been present in the history of Catalonia, and despite the ups and downs that have happened over the years, it is currently experiencing one of its best times, with wide recognition of the high quality of the finished products.

AGRARIAN TRADITION, LANDSCAPES AND TOURISM

Regarding the reception of these new plastic products, it must be highlighted that the behaviour of pigs in their natural habitat is also reproduced on the farm. One of these is to bite everything with this characteristic digging movement.

That is how they eat. Thus, the farmers were not very optimistic about the durability of the feeding plates (concrete already suffered wear from this type of aggression). In this sense, the design of all our products takes this behaviour into consideration and they are made with stainless-steel protection in the points most likely to suffer wear, like the corners and sharp edges.

To guarantee the geographic origin of the Catalan wines, as well as their quality, good practice in the production, a certain aging and the use of certain varieties, a Denominació d’Origen (denomination of origin) is awarded.

In Catalonia, there are currently eleen denominations of origin for hih-quality wines, which are distinguished by the area where they are produced. These are Alella, Catalunya, Conca de Barberà, Costers del

Segre, Empordà, Montsant, Pla de Bages, Penedès, Priorat, Tarragona and Terra Alta.

The peculiarities of each area, its location, the lay of the land, the climate and the different varieties of grapes grown, enable the producers to offer the consumer a wide range of very varied wine, but all with a very highly valued level of quality.

A strategic sector There are currently nearly 800 Catalan wineries with the Denominació d’Origen and who together produce over 180 million bottles of wine and more than 200 million bottles of cava (sparkling wine). Thus, wine and cave production has consolidated itself as the third most important sector in the Catalan food industry with a turnover that exceeds euros1,100 million, and annual net sales of over euros 1,000 million. Regarding external trade, Catalonia exports wines and cavas to over 140 countries, especially in Europe, America and Asia.

GLOBALPIG was up to there and six months later, bingo!, we had our first order. From then on, the company has never stopped growing on the international market.

Another great leap forward was the addition of our own injection system in 1994, which, shortly after, forced us to incorporate our own section of dies. I remember that in those days, everyone said it was a bad decision, but that step has allowed us to be much more efficient and faster in production and with lower costs.

We could say that these were the most significant decisions for Rotecna in its early days, and ones that defined a solid business model for later progressive growth. From there, we entered into a constant whirl of expansion. Nowadays, the strategic plan that we are starting, which is aimed at doubling the size of the company in five years, is the most important decision on growth in all Rotecna’s history.

Has the economic crisis affected Rotecna?

The crisis was also a hard blow. We need only mention that in two and a half years, from 2008 to 2010, our sales fell by over 60%, a very worrying figure.

Fortunately, the company was economically healthy and I believe that we took the right decision when we opted to go ahead, to continue investing and innovating in the creation of new products. That decision gave its results and allowed us to start recovering. We have no been setting new records for turnover for four consecutive years.

the other hand, we have lines of business coming up, but it is still too early to talk about them. At the same time, we continue with the inertia of creating new designs for products to meet the requirements of an ever more demanding and technical market, which is why we are in constant growth every year.

What place does the company currently hold in the sector?

In a wider framework, what do think about the future of the pig sector?

Rotecna is very specialised in plastic and, in that field, we are far and away the world leaders. In the specific case of Spain, if we add the four products we are most specialised in, namely slats, hoppers, pans and dispensers, we have a market share of 65%. On the other hand, internationalisation gives us a great company dimension, and has led us to be present in over 80 countries. In fact, we are in all the countries in the world where there are pigs.

I think the immediate future is complicated all over Europe. We are in a situation of overproduction. After applying the Animal Welfare legislation, that has meant heavy investments to make farms more efficient and better health-wise, and a strong change in the genetics of sows, that are productive than ten years ago.

Altogether, this has led to scenario of supply outstripping demand, with the consequent fall in prices.

Regarding the near future, Rotecna has launched a strategic plan for growth. What does it consist of?

Will this scenario have consequences for Rotecna?

The aim of this plan is to double the size of the company and increase the current workforce by 50%. To this end, we are developing four lines complementary of business in our sector. The first that we have started this year is the development of a plastic panel for separations, walls, etc. We are working to offer the market large-size panels unique in the world for their dimensions, according to the valuations of the leading makers of machinery in the sector. On

Visit by Japanese clients in 2003 guided by Gener Romeu. Photo: RotecnaPress.

Rotecna suffers the cycles of crisis in the sector, but, unlike other companies, that great first business decision for internationalisation compensates for the moments of crisis in some countries with growth in others that have a deficit of production and who decide to build new pig farms, as is happening currently in Asia. In this sense, from 2016, one of the markets where we will dedicate more resources to improve our penetration will be Asia. We area global company, so we have to go where we detect the market will grow.

LAND OF HIGH-QUALITY WINES AND CAVAS Ecological wine Like many agricultural sectors, we also find ecological production in the winemaking world, with a system designed to make products of the highest quality while respecting the environment and without using chemical products, increasing the fertility of the soils, limiting aggressive practices, avoiding all forms of contamination and loss of quality in the final product.

However, it is true that the making of ecologic wines and cavas is not very different from the process of producing non-ecological ones, as these products are made in Catalonia under very strict parameters regarding the quality of the product. The main difference is in the raw material, as ecological grape production has to be from ecological vineyards certified by the Catalan Council of Ecological Agrarian Production (CCPAE).

In Catalonia, there are over 1,000 hectares of vines registered as ecological agricultural production and there are 91 operators with ecological vine growing in Catalonia. This figure only represents 1.5% of the total production area, but this is forecast to increase.

Wine tourism Wine tourism arose from the combination of the culture of wine in Catalonia and the exploitation of the tourist resources in the surroundings. This is an entertaining way to discover the world of wine while also enjoying the history,

Vinyes de Raimat (DO Costers del Segre): Photo: Celler Raimat

culture and characteristic gastronomy of the lands where it is made. There are many wineries (cellers – literally cellars) in Catalonia that are open to organised visits to their installations and offer wine tasting, walks among the vines, and the possibility to acquire their products. This offer can, however, go much further to include a long list of leisure and sporting activities, and to live unique experiences, like a picnic among the vines or the discovery of wines produced at over 1,000 metres above sea level.

With this offer, the Catalan wine-making sector broadens its horizons beyond the production of high-quality wines and cavas, with a different way to discover a country and its traditions.

3

TECHNOLOGY

BRACKETS, JOINTS AND FAST DOOR KIT,

TOTAL SOLUTION

FOR PANELS.

To date, there is a limited range of specific brackets on the market for joining and anchoring panels in the separation of pens, which means the farmer often has to make customised pieces that adapt to the characteristics of the installation.

Generally, these brackets are not very durable or hygienic as they are made of steel, which is not very resistant to the

Rotecna provides a full solution for pens with panels and corrects the problems farmers currently come up against, offering the specific brackets together with the system of panel.

corrosive environments on pig farms. In these conditions, the doors and locking systems tend not to be easy to use on a daily basis which means that the farmer often ends up jumping over the walls of the pens, which is not the best solution for comfortable and safe working.

As of today, this will change.

Some of the factors that Rotecna has taken in consideration in the design and creation of these news brackets are to facilitate the design of housing systems for the animals, as well as for mounting on structures resistant to corrosion and easy to handle.

To continue the development of the new family of panels for pens, Rotecna now launches all the products necessary for a good installation. These consist of an innovative system for closing doors: Fast Door Kit, and various models of brackets to hold the panels correctly, notable among which are two models made of plastic.

Rotecna has patented an innovative system closing system for their door panels: the Fast Door Kit, easy to install and handle. Made of plastic and stainless steel, it comes with instructions and a full set of stainless-steel mounting bolts.

Exclusive Rotecna door system: Fast Door Kit

The Fast Door Kit from Rotecna offers solutions to the problems detected by farmers in other door closing systems on the market, offering as it does a safety system that ensures the door closes perfectly and impedes accidental opening provoked by blows from the animals.

Highlights: • The installation of the Fast Door Kit system for panels requires no cutting of the door. The incision in the fixed panels is done with templates supplied with the kit.

• The design without corners avoids the accumulation of water and dirt, which ensures optimum hygiene and avoid the appearance of bacteriological problems and contamination. This great advantage, together with the ease of cleaning, always provides the best health conditions in the pens.

• The materials of the Fast Door Kit are resistant to corrosion, thus ensuring high durability.

Fast Door Kit

product patented

24

• The design of the closing point in a ‘V’ shape always guarantees a perfect and easy fit of the door in everyday use.

3D view of ‘V’ closing point.

TECHNOLOGY Brackets for panels

ADVANTAGES • Easy to install.

• Easy and fast fit for opening and closing in daily use.

• Safety system to ensure the door closes perfectly.

T bracket: to join panels perpendicularly.

• Without corners to guarantee optimum cleaning.

• Resistant to corrosion.

• High durability.

• Designed for use in fattening and group farrowing.

• The Fast Door Kit does not require any cuts in the door.

• It comes with all the necessary stainless steel nuts and bolts.

• To install it correctly, Rotecna provides the farmer with the Assembly Guide, a piece of red plastic, unique on the market, that serves as a guide for mounting the Fast Door Kit system. Installing this piece ensures that any expansion or contraction of the panel caused by temperature variations will be absorbed.

U wall braket: To clamp the panels to the wall.

Rotecna has created two models of brackets for joining panels and ensuring the stability of the pens. The brackets are designed to guarantee the correct assembly of the panels.

Made of polypropylene (PP) and fibreglass, they are highly resistant to the corrosion of the slurry and impact of the animals, which guarantees high durability.

Rotecna also sells other brackets as accessories. These are made of stainless steel, and have been designed to ensure the correct anchoring and stability of the panels.

The expansion and contraction of the panels is no longer a problem For correct installation and to absorb the expansion of the larger panels exposed to thermal variations that can reach 40ºC, we have added polyamide brackets (T bracket and/or U bracket), easily identifiable guides for joining panels and brackets correctly to allow any expansion and contraction.

Assembly Guide

Graph of expansion and contraction guide

• The opening and closing handle has been designed to be easy to use. It has a safety system that ensures that the door closes and avoids accidental opening caused by blows from the animals. It is effective and comfortable for everyday use on the farm.

5

PRODUCTIONIN...

Image of the supply of pork in a Taiwanese market. Photo: 玄史生

THE DIVERSIFICATION OF HIGH-QUALITY PRODUCTS, THE MAIN AXIS OF PIG PRODUCTION IN TAIWAN Source: ICEX (Spanish Institute for Foreign Trade)

In recent years, the Taiwanese pig meat sector has enjoyed a positive and constant growth in terms of per-capita production and consumption, with pork being one of the most widely consumed by the Taiwanese.

The country has a production capacity large enough to meet domestic demand for pig meat, which is complemented by imports of high-quality products, and, to a lesser extent, exports, mainly to neighbouring countries.

Taiwan has a population of 23 million and an average meat consumption of 77 kilos per head, which puts it among the main consumers of meat products in Asia. Thus, the consumption of pork among the Taiwanese population has tended to grow, according to the data for recent years.

Production The production of the pig sector in Taiwan is notable, with an increase of 13% over the last 5

With policies to support the meat sector to ensure the quality of the products the population consumes, pig production has increased by over 12% in the last six years. years. Thus, while the value of Taiwanese pork production in 2009 was about euros 1,778 million, by 2013 this figure had stabilised at around euros 2,000 million (Table 1). However, the high population density in a small land area generates supply needs that have to be met by imports of certain products, principally sausages, cured and frozen meat, offal and Iberian ham.

On the other hand, domestic production in Taiwan is characterised by the targets set by the organisms and institutions that are focussed on increasing the quality of the meat, and to extend the variety of cuts thanks to the policies initiated at the turn of the century that submit the farms to strict health checks. In this sense, the authorities control compliance with the norms and laws to guarantee the safety and quality of the final product.

Given the good trends of recent years, the aim of the sector is to maintain the sustainability of the Taiwanese pig industry, stabilise domestic

TABLE 1. PIG PRODUCTION IN TAIWAN (THOUSAND EUROS)

production and promote the consumption of pig meat to secure consumer confidence in the homegrown products.

Consumption Pork is one of the meats most widely consumed by the Taiwanese. Domestic pig production is mainly consumed on the home market, and only 1% of local production goes to export, specifically to neighbouring Asian countries.

According to data compiled published by the ICEX (Spanish Institute for Foreign Trade), pig meat consumption in Taiwan has risen by 11% over recent years, remaining around euros 2,100 million (Table 2).

The evolution of the average prices for imports has led to the consolidation of the general tendency on the Taiwanese market, showing that good-quality imported products, from western countries are increasingly highly valued.

TABLE 2. EVOLUTION OF THE IMPORTS (THOUSAND EUROS)

120.000

2.600.000

96.000

2.080.000

72.000

1.560.000

48.000

1.040.000

24.000

520.000 2009

6

2010

2011

2012

2013

0

2009 2010 Frozen meat

2011 Offal

2012 Sausages

2013 Cured meat

0

PRODUCTIONIN...

DATA ABOUT TAIWAN • Capital: Taipei.

• Area: 35,980 km2.

• Population: 23,046,177.

• Density: 668 people per km2.

• Economy: Technological and service sectors (covering 70% of the GDP).

• GDP: €398,451 million.

Imports A population of over 23 million with an annual meat consumption of 77 kilos per head obliges the market to resort to imports of certain products to meet the demand from consumers. However, with the growth of domestic pig production since 2009, the volume of imports has fallen by 10%, although the price of the imported products has increased, as the tendency is towards imports of highquality products.

This drop in imports has come about principally through a 25% decrease in imports of frozen pig meat, the product that Taiwan imports most of, representing over 50% of the total of pig products imported in 2013. Meanwhile, the rest of products; sausages, offal and cured meats (ham, shoulder and pieces) have increased their market share by 55%, 19% and 12% respectively, over the

Pig farm in Taiwan. Photo: Bioguard.

5 years. Indeed, imports represent slightly over 5% of the total meat consumed in Taiwan, as most demand is covered by local production.

Origin of the imports The USA and Canada are the leading exporters of pig products to Taiwan, with the former leading the ranking in most product categories except frozen meat, where Canada outperforms it. Other countries high on the list importers of pork into Taiwan are Australia, Hungary, Holland, The Philippines, France and South Korea.

Spanish products have been successful on the Japanese, Hong Kong and Korean markets for years, which leads us to expect a good reception for Spanish pork on the Taiwanese market.

FUTURENEWS

PRIVATE STORAGE OF PIG MEAT TO BEGIN IN JANUARY WITH IMPROVEMENTS Last December, the European Commission approved the opening of private storage facilities for pork from the 4th of January 2016. This storage system will be similar to the previous one, but with some improvements. Thus, the amount of aid will rise by 20%, fats will be included on the list of products and the stored meat will be given permission to be removed after a minimum of two months with no penalisation, as long as it is destined for export to third countries.

Although the opening of private storage is good news, the sector regrets that this measure arrives late as they were calling for it be applied in November or early December after months of low market prices, which are causing serious losses per pig.

The team directed by Fernando Rodríguez. Photo: IRTA

Spanish farms loose an average of euros 3,800 per week In the specific case of the Spanish market, the Coordinator of Organisations of Farmers and Breeders (COAG) reported the difficult situation the pig producers are experiencing. According to data from the COAG, an average farm of 500 sows is loosing over euros 3,800 per week and prices in the sector have now been below the cost of production for eight consecutive weeks.

On the other hand, SIP Consultors add that while the production costs on a farm are around euros 1.12 per kilo, the reference prices on the market in Mercolleida in the last week of November were around euros 0.96 per kilo. Moreover, it should be remembered that the market sets the maximum price to pay the farmer, so the final price can be even lower than the value set by Mercolleida.

It is because of these figures that, although the sector is favourable to the opening of private storage and its improvement, they consider that the measure has come late, given that farmers have been suffering falling prices since last August, with an accumulated fall of 24% in the price of live pigs between August and November.

7

THE MOST EXTENSIVE RANGE

PANS MAXI PAN MAXI HOPPER PAN MAXITAINER FOR MAXI PAN TECNA PAN INITIATION PAN EASY PAN INITIATION PAN MINI PAN MINI HOPPER PAN MINITAINER

OF PRODUCTS FOR PIG EQUIPMENT

FEEDERS GROW FEEDER MAXI GROW FEEDER MINI SOW FEEDER SWING R3 DUO SWING R3 WET SWING R3 TUBE TR2 FEEDER TR5 FEEDERS SOW BOWL FEEDING BALL

DRINKING BOWLS & VRH-3 VALVE VRH-3 SWING DRINKER EASY DRINKER DUO EASY DRIKER MINI EASY DRIKER MIDI

DISPENSERS CLUTCH DISPENSER DOSIMATIC SIMPLEX D-2 FOUR FIVE ADAPTER LINE DISPENSER OUTLET ADAPTER

COVER NI-2 POR PIGLETS NI-2 CORNER NI-2 MOBILE LAMPHOLDER LID WITH LED LIGHT, 5W

FLOOR DELTA BEAM PROFILE T PROFILE DELTA NET SYSTEM ERGOFIX BASIC POST BEAM CLICK-IN

PVC PVC PROFILES (50,25,10 CM) CLOSE PVC PEN DIVIDERS OPEN PVC PEN DIVIDERS DOORS FAST LOCK BRACKETS U BRACKETS SOLID GRIP

PANELS BLIND PANEL 1200X1000 VENTILATED PANEL 1200X1000 BLIND PANELS MADE TO SIZE VENTILATED PANELS MADE TO SIZE MIXED PANELS MADE TO SIZE

CHAIN AND DISK SYSTEM • SHOCK ABSORBING TEETH SYSTEM. • EASY ADJUSTABLE CHAIN TENSIONING SYSTEM WITH GRADUATION SCALE. • CORNERS WITH EASY APERTURE SYSTEM. • SILO EXTRACTION SYSTEM WITH AN AGITATOR.

SLATS WEANER BLIND PARTIAL BLIND SOW TRAP SLAT WEAN TO FINISH ELECTRIC HEATED PLATE WATER HEATED PLATE CAST IRON FERROCAST LEVEL BED / RAISED

AUGER SYSTEM THE SILO OUTLET SYSTEM CONSIST OF A SILO BOOT, A TRANSFER UNIT AND A SLIDE GATE ASSEMBLY THAT ALLOWS HORIZONTAL AND INCLINED INSTALLATION.

SPLAYLEG STOP