16 minute read
Digitisation in the pig and cattle trade
DIGITISATION IS SOMETHING YOU CAN LEARN
Digitisation has become a hot topic in most boardrooms in recent months. Challenges such as cybersecurity, 24-hour availability, staff shortages and the pressure to reduce costs and increase quality play an important role. Digitisation is a tool for smarter business. But what about its role in the pig and cattle trade? How digital are we? And, with a view to the future, what steps are needed in our industry? Let us take you through our digital world. And our ICT partner ZeroPlex will provide you with some insights and useful tips!
Always further, always ahead.
The arrival of our new internal system in the field of CRM, order processing, accounting and invoicing has got us thinking. How digital is the industry we operate in, and what does this mean. At VAEX, there is a reason why we say “always further, always ahead”. Our systems have to match that. We want to be progressive and innovative. And that's why VAEX's IT landscape is continuously monitored, to see if it still fits our organisation. There is even 1 FTE for this. This new system, which has been developed in-house, ensures an “internal well-oiled machine” within our company. More efficient intercommunication in relation to pending orders, greater speed in invoicing, better CRM possibilities and less susceptibility to errors.
But what about other organisations in our industry? Although digitisation is seen as important within our industry, we find that it isn’t yet high enough on the agenda. The barrier to getting started with digitisation seems to be too high. There is a lot of unawareness around this issue, which can be challenging. For instance, an organisation might not have the knowledge in-house, might have no idea where to start, or simply doesn’t have the time to think about it. Yet digitisation is of great importance for the future of our industry and our business.
Why start now?
The economy is under pressure, and laws and regulations are changing. Digitisation within the industry will affect people and animals, providing a better understanding of animal welfare, forecasting, nutrition and genetics. It will also allow us to make smart use of human resources, and improve food health and safety. Digitisation offers opportunities for more transparency, speed and convenience. In today's market, information sharing and transparency is almost a necessity. In order to keep up with the rapidly changing market and build a future-proof business, digitisation should be higher on the agenda.
NEW AVEX SYSTEM LIVE FROM 1 JANUARY!
Our new internal AVEX system goes live on 1 January next. This system will enable us to provide our customers and suppliers with a faster and more efficient service. Behind the scenes, this will be of great benefit to us, but our customers and suppliers won’t notice much of a difference on their end. If you receive a new type of invoice after 1 January, this is because of our new system.
Twan van Dijk and Rick van Dijk of ZeroPlex
TWAN VAN DIJK (ZEROPLEX) ON DIGITISATION
Entrepreneurs need an ICT sounding board who is able and willing to learn more about their business. This partner must be able to translate the full complexity of ICT into appropriate solutions. That starts with practical support on many levels, such as user support, telecoms and appropriate software. But above all, an ICT partner is a sounding board with specialists who know their customers' relationships and challenges.
ICT is the survival tool par excellence. There are few companies where digitisation, alongside the employees, isn’t the backbone of the company. Digitalisation has long since ceased to be merely a cost item. These days, it’s the ultimate means to stay ahead of competitors and enable innovation. But how do you approach it? Here are some specific tips for getting started with digitisation.
What do I need?
Determine for yourself in which areas you as a company are (and wish to be and/or become) distinctive in your market. Based on this, you can determine in which areas you need more and/or better ICT support. ICT is an expensive commodity. And will only get more expensive. Which is reason enough to first think carefully about the changes you want to make yourself.
● What is the current condition of the ICT machinery?
What is the status of support, cybersecurity, backup and restore tests and working from home. In short, is the foundation in place? ● How are telecommunications currently organised: data connections, telephony and mobile subscriptions. There are often serious savings to be made by taking a good look at this, and placing it all with one party. ● Once these issues have been resolved, it is a good idea to start looking at the business processes. Are employees being properly deployed, where is time being unnecessarily wasted, and where are a lot of errors occurring? Often, small improvements are already possible with adapted software. ● If, as an entrepreneur, the above points are clear to you, you’ll have a rough idea of the current ICT environment. With this input, you can have a productive discussion with your ICT partner about the current environment, and where there are opportunities to improve it.
Find a reliable ICT party
Find a reliable ICT party that can act as a sounding board and provide you with a broad range of support. Try to avoid too many ‘supporting parties' who, although they mean well, end up bringing you into a vicious circle of going from pillar to post. It’s expensive, and won't generate momentum, nor help you move you forward.
Plan and be realistic
Together with your ICT partner, draw up careful plans, taking into account capacity, lead time and budget. Also be realistic about things. Not everything needs to be done at once. Spreading things out is often quite possible. Start with the arterial bleedings that are a real threat. And work down the list of priorities that way You will then naturally get to the scrapes and other aches and pains.
ZeroPlex and VAEX have a long history. This has given both sides the confidence to fulfil VAEX's vision and mindset with concrete ICT solutions. We are proud to say that VAEX is an excellent example of how cooperation between employees, management and board lead to a close trusted partnership. For VAEX, we provide not only the daily ICT management, but also everything to do with telecommunications, mobile telephony and custom software. One point of contact, one phone number, one invoice and no quibbles. Just like VAEX, we want to make life easier for our business partners and, as two family businesses, we do so sincerely and wholeheartedly.
Are German quotations still the European standard?
The base prices for piglets and finishers on a weekly basis should reflect the current market situation as closely as possible. Especially for pig trading in Europe, market conformity is a requirement. "That’s why following German quotations is out of date," argues Gert Posthouwer of VAEX.
The pig market and relations in the European pork market have changed considerably. The German pork production chain was once cutting-edge and export-oriented. Almost every European country looked at the quotations of piglet and finisher prices in Germany. Trading parties were also fine with making deals based on German quotations.
Germany’s dominant position has crumbled considerably in recent years. The country is moving rapidly towards self-sufficiency for pork. Yet German quotations still play a pivotal role in pricing in Europe. Which is a bugbear for Posthouwer, who is head of international sales at VAEX. "Weekly quotations for piglets and finishers should match current developments in the pig market. Recently, German pig prices have not been in line with the European pig market. They have reflected the German pig market, resulting in abruptly-changing prices. Occasionally they have been too high, and sometimes too low. Such a highly emotive market frustrates not only trade, but also pig farmers, as they respond to price peaks or troughs in the way they do business."
Increasing price risks
In addition, making agreements with suppliers and buyers of piglets based on German quotations such as Nord-West or VEZG poses increasing risks. Posthouwer therefore advocates a quotation that is in line with the market, and conveys stability and calm. The BestPigletPrice (BPP) in the Netherlands is a good example, according to Posthouwer. "The BPP quotation reflects how the sales of piglets and those of finishers on the free market are going that week. Only it is difficult to reach agreements based on this Dutch quotation with foreign parties buying piglets." Following Spanish quotations - with Spain now being Europe's largest pork producer - is simply not an option, according to Posthouwer.
"In Spain, integrators dominate the market, and keep the quotations flatter. The country is in a different league."
Danish pig quotations
A good alternative, according to VAEX's salesman, could be Danish pig quotations. Piglet and finisher prices are linked, and move quickly with the market. "Danes are export-oriented. Moreover, they differentiate quality in their piglet quotations, which is reflected in the trade value." The health status of Danish pig farms is known, and Danes are transparent about this. For piglet litters that are free of PRRS, APP and mycoplasma, one euro per animal is paid more than for piglets with a lower health status. "We should do something like this in the Netherlands too," Posthouwer stresses. "To demonstrably increase the health level on farms, and not keep betting on selling vaccinated piglets. Despite three vaccinations, Croatians, for example, pay less for Dutch piglet litters than for Danish ones."
The importance of genetics in pricing piglets is also shifting, according to Posthouwer. "A few years ago, a feature of the German market was that the highest prices were paid for high-yield pigs with a majority being the double A type. The Piétrain as terminal sire was more or less the norm," he says. "Today, the focus is on efficiency and cost price, sturdy pigs that grow fast and have low feed conversion. Offspring of the Duroc and TN Tempo are in demand in Germany, as in the rest of Europe."
Posthouwer's message is to achieve a stable and reliable quotation for the European pig market. "Everyone who uses it benefits from peace of mind and stability. In any case, the German quotations no longer offer that predictability."
Robert Hoste - senior pig production economist at Wageningen Economic Research.
DANES COULD SERVE AS A GUIDELINE FOR REFERENCE PRICE PIGLETS.
"Germany's position within the European pig industry has changed rapidly, partly due to African swine fever and trade restrictions. At the peak of meat production, an average of one million pigs were being slaughtered every week. This has decreased by about a quarter, and will further fall to slaughtering 500,000 to 600,000 finishers a week. Future welfare regulations are hitting German sow farming particularly hard, so the need to import piglets will remain. Denmark and the Netherlands will supply these piglets. In the search for a new reference price for piglets, the Danes could be serve as a guideline. Calm and predictability with regard to quotations is of benefit to everyone in the pork production chain. But as is transparency on, for example, health status and genetics. Making paying in terms of quality a reality would see BestPigletPrice becoming more market-based. Pork yields continue to determine what a piglet can cost."
The Italian, but also certainly the European pig market, has faced many negative influences in recent years. Economically, these include skyrocketing raw material prices and unsustainable energy costs. But ensuring animal health is also a major issue. Besides common diseases, the arrival of African swine fever in Italy is causing great concern. Together with Simone Bergamini of Assocom, we zoom in on Italian pig farming.
Because how do you, as a link in the Italian pig chain, stay the course during these challenges? Assocom sees opportunities in a cooperative. You already see this in many countries, but in Italy it’s not yet commonplace. A situation where the pig market is organised like a production chain. Where separate organisations come together to form one entity, to stimulate the market and offer a fair price to all links in the chain. Assocom is a driving force and part of such a cooperative. And believes this can help farmers, and enable growth in the Italian pig industry.
From piglet, to pig, to meat “Coming full circle"
Every year, Assocom buys approximately 40-50,000 piglets from VAEX. The piglets mainly come from Denmark, from sow farms carefully chosen by VAEX and Assocom for their high health status. In addition to Danish piglets, Dutch piglets are occasionally purchased.
The purchased piglets are then placed by Assocom with Italian farmers participating in the cooperative, as well as with a number of non-participating farmers. The aim is to eventually buy these piglets back, when they are ready for slaughter. And to offer the farmers a fair price.
Abattoirs are also part of the cooperative. Like Opas, a contact that both Assocom and VAEX work closely with. Among others, that is where the animals go when they are ready for slaughter. Apart from Opas, there are eight to ten other abattoirs that Assocom works with. And, to complete the circle, VAEX collaborates with Opas in the field of meat trading in Europe. In short, this cooperative goes from piglet to pig to meat. Within the cooperative, Opas is Assocom's main Italian partner. Among other things, commercial, economic and technical strategies are coordinated in close consultation. Opas is no stranger to Simone; in 2016 he worked for this organisation as a buyer and seller for pigs and raw materials. After which he moved to Assocom in 2017.
ABOUT ASSOCOM
Assocom is the largest pig trade cooperative in Italy, and has over 70 members. They supply piglets both to farmers affiliated with the cooperative and non-participating farmers. In addition, they buy back pigs from the same group. Which they pass on to various abattoirs. Since 2019, Assocom has also started buying and selling raw materials used on farms.
VAEX and Assocom have been working together for some time. Previously, Alberto Balconi was VAEX's contact at Assocom. He moved to Opas a few years ago, where he is now the managing director. Then Simone Bergamini came forward as a replacement at Assocom. Since 2017, Roberto de Pol, commission agent for VAEX in Italy, has also been working closely with Assocom. Simone remembers that he and Roberto first met in a bar in Mantova at the end of September 2017. "That is where the first delivery of piglets between VAEX and Assocom came from," says Simone. Currently, Roberto also works for Assocom on commission. He deals with pig procurement. "Despite the challenges coming our way, the partnership is making good strides," explains Simone Bergamini. “We have stabilised the procurement number. Approximately 40-50,000 piglets go to Assocom every year. This is the result of a good relationship with VAEX and Roberto. The collaboration with VAEX gives Assocom assurance not only on quality, but also on the availability of piglets at the carefully selected sow farms. We believe this cooperative can help farmers, and will have a positive impact on the Italian pig market," says Simone.
What makes the Italian pig market special?
The Italian pig market is different from the rest of Europe. In Italy, for instance, pigs are made much heavier. Whereas in most countries pigs are fattened to 120 kilos, in Italy it is often 160 to 185 kilos.
In addition, the main destination for meat in Italy is ham. Italy is famous for protected designations such as Prosciutto di Parma, Prosciutto di San Daniele and Prosciutto Toscano. These hams are obtained from animals with the right characteristics, fed according to specific principles and born and raised in Italy. Strict checks are made to ensure that all these characteristics are maintained, during all stages of processing.
ABOUT SIMONE BERGAMINI
Sales director at Assocom
Joined Assocom in September 2017 He is responsible for buying and selling slaughter pigs, piglets, slaughter sows and raw materials. He buys piglets and other livestock from VAEX and sells slaughter pigs to Opas, among others. He is the co-driver of the cooperative and the connecting link.
Gently cooked pork cheeks with a cream of Jerusalem artichoke, caramelised silverskin onions, gravy and a crumble of bacon and onion.
Number of persons: 6 Preparation time: Brine 24 hours in advance!
Preparation method:
Cheeks: Make a brine bath for the cheeks. To do this, mix the water with the nitrite salt. Mix well, and place the cheeks in the bath for 24 hours. Briefly rinse and pat dry. Now briefly fry the cheeks in a pan until they are light brown. Then add the red wine, jus de veau (veal gravy) and bay leaf. Leave to cook gently for 3.5 hours. Do stir occasionally, though. When this is done, remove the cheeks from the pan, and add the brown caster sugar. The gravy may now need to be reduced slightly (it should come off the spoon somewhat syrupy). This can be done on a slightly higher heat, but you still need to stand by it.
Cream of Jerusalem artichoke Peel the Jerusalem artichoke and cut into pieces. Cook the Jerusalem artichoke in the beef stock until tender. This will take about 20 minutes. Then scoop the Jerusalem artichoke into a blender, and add 50 ml of the cooking liquid. Puree this until smooth. Then pour it into a pan, and season with some salt and pepper. Be careful with the salt here, as we are seasoning the silverskin onions and gravy too! Next, mix the cornstarch with the water in a bowl, and add to the cream.
Silverskin onions Peel the onions and cut them in half. Fry them in olive oil until lightly browned, then deglaze with the Ponzu Yuzu Shibanuma.
Bacon and onion crumble Fry the bacon until nice and crispy. Then place it on some kitchen paper so the fat can drain off. When cooled, place in the blender together with the fried onions, and blend with the pulse button to make a crumble.
To serve The dish looks best in a deep plate or slightly larger bowl. Start with the cream of Jerusalem artichoke. Spoon 2 tablespoons of this into the centre of the plate. Then divide the silverskin onions between the plates. Spoon these on top of the Jerusalem artichoke. Lay the cheeks on top. Then add 2 tablespoons of gravy to the plate, and finish by sprinkling a teaspoon of the crumble over the cheeks.
Ingredients:
Cheeks and gravy • 6 pork cheeks • 53 g nitrite salt • 1.5 litres water • 500 ml jus de veau (veal gravy) • 1 bottle red wine • 1 bay leaf • 1 tbsp brown caster sugar
Cream of Jerusalem artichoke • 400 g artichoke • 1 litre beef stock • Salt and pepper • 1 tsp cornstarch • 1 tbsp water
Silverskin onions • 250 g silverskin onions • 15 ml Ponzu Yuzu Shibanuma • 1 tbsp olive oil
Bacon and onion crumble • 60 g bacon • 25 g fried onions
cooking with Tim
