In 2013, Raisioagro's position in the Finnish market for agricultural products was established and strengthened along with the improved company recognition. Total volume in Raisioagro's feed sales was at the previous year's level and sales focused clearly on the products with a higher degree of processing.
The number of livestock farms continued to decline in Finland due to industry restructuring. Increased production levels on the farms still continuing compensate for the missing production of quitting farms. Total production of milk, poultry and eggs increased. Total pork production was up from previous year and growing slightly at year-end. In Finland, livestock production is also centralising geographically.
Finnish milk production on the increase
Milk production is slightly increasing in Finland. In 2013, the number of dairy cows was at previous year's level although the number of dairy farms decreased by 500. At the end of 2013, there were some 8,800 dairy farms in Finland. Dairy producers' investment levels remained high and the average number of cows per Finnish dairy farms amounted to 32.
Consumer demand for milk remained good, which was also seen in higher producer prices. Average milk yields have been stagnant for long but began to show growth in the spring 2013. With the planning of cattle feeding and correct feed choices, it is possible to take better advantage of the cattle's yield potential.
Total consumption of dairy cattle feeds remained at the previous year's level. The structure of Raisioagro's sales changed as the share of further processed feeds, such as Benemilk, increased significantly.
Benemilk feeds provide better yields and contents of milk
Benemilk - Raisio's top innovation
Benemilk feeds already have around 10% of dairy cattle feed market in Finland. Benemilk feeds were launched in Finland early 2013. Already in 2012, there was a narrow range of similar products available under the name Maituri 12000 E. Benemilk product line included four products in the launch stage. As part of the launch campaign, the farms starting with Benemilk feeding were granted a unique satisfaction guarantee and the number of the farms using Benemilk feeds increased by several hundreds.
The second phase of the launch was carried out last autumn; our product range was expanded and we organised a tour of seminars. With the expanded range, more and more farms can find just the right Benemilk feeds proven to increase the yield and contents of milk when the products are used in line with feeding recommendations.
Last autumn, Raisioagro organised feeding seminars in 20 places around Finland, Benemilk feeding as a key topic. Over a thousand milk producers participated in these seminars. Benemilk is found interesting and the results achieved with the Benemilk feeding are convincing.
For its Benemilk customers, Raisioagro has also introduced a farm-specific service, in which the development of milk quantities and contents are monitored. In addition, Raisioagro specialists support and help farmers to make effective feeding plans.
Demand for poultry is increasing while the profitability problems at pig farms continue
Positive market conditions for poultry meat continued. Production growth focused particularly on broiler meat; its consumption increased by about 4% in the review period. Turkey meat production slightly decreased accounting for less than 10% of the total poultry production. Broiler and turkey feeding is based on compound feeds, so the production volume of feed mixes increased in the same proportion as the meat production.
Egg production grew by about 7% in 2013. At the same time, growth in consumption slowed down and Finland faced a challenge of overproduction. At the beginning of 2013, producer price in eggs was still higher than a year before, but since last spring, prices have been declining. There are some 350 chicken farms in Finland.
Profitability of pork production remained weak in Finland even though producer prices were up in early 2013. Total pork production increased by some 2% on the previous year. In 2013, the number of pig farms declined to 1,650, which is about 8% less than in the previous year.
On pig and poultry farms, Raisioagro's operations are based on feeding expertise, which is becoming increasingly important due to the industry restructuring. Several development projects and product renewals were carried out in all animal groups. Development work is often done in cooperation with the processing industry and customer farms.
Pig and poultry farmers typically cultivate grain as well, and with our expanded range of farming supplies, we can provide them even better services.
Finnish milk and fish chains are completely non-GMO
Raisioagro has a comprehensive product range for poultry, egg and pork producers. In 2013, also Raisioagro launched GMO soy containing pork and poultry feeds in addition to its non-GMO soy feeds. Customers can now have the option to choose which feed to use. Elsewhere in Europe, GMO soy is used mainly as feed raw material because of its lower price and the limited availability of non-GMO soy. Unlike other countries, milk and fish chains are completely GMO-free in Finland.