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Raisioagro 2017

Cattle feeds

Main events in 2017

  • Already 230 dairy farms within the Tuotostutka® milking robot monitoring at the end of 2017.
  • The launches of Kestävää tuottavuutta (the Sustainable Productivity) concept promoting responsibility and Green feeds.
  • Proagria’s milk yield monitoring showed that with big cattles, Benemilk feeds are in use on the two best farms out of three.
  • Sales in cattle feeds turned to growth at the end of 2017.
  • Significant increase in the mineral export to Russia.

Financial review

In 2017, cattle feeds accounted for almost 60 per cent of Raisioagro’s net sales of EUR 126.3 million. Finland is Raisioagro’s largest market for cattle feeds and the company has a market share of some 35 per cent in the cattle feeds sold in Finland.

In terms of cattle feed sales, 2017 was twofold: sales decreased at the beginning of the year, but turned to growth in the autumn. There has been no significant change in the milk producer prices and the situation has increased feed producers’ competitive bidding and focused the purchasing on more affordable feeds. In the last quarter of 2017, cattle feeds sales were up from the comparison year as a result of Raisioagro’s feeding expertise, the product range adapted to farmers’ needs and active new customer acquisition.

Added value for customers with Tuotostutka®  milking robot monitoring

Raisioagro continued its strong investment in the development of digital services. Raisioagro’s strong feeding expertise is used in the company’s digital services that create added value for customers with solutions analysing the data generated by dairy farms.

The number of dairy farms in the Tuotostutka® milking robot monitoring continued to grow steadily and almost 230 farms used the service at the end of 2017. In practice, some 20,000 cows, or 7.5 per cent of Finnish dairy cows, are in the monitoring that helps analyse the yield and well-being of animals and optimise the feeding. Raisioagro is constantly developing new Tuotostutka features to facilitate the production monitoring and to analyse farm profitability.

Business operations

Sales declined in Maituri compound feeds and concentrates but increased in feeds used in milking robot feeding. For Melli minerals, sales were up in Finland and exports. Raisioagro was the first Finnish feed company that completely abandoned the use of soy in its cattle feeds.

The Sustainable Profitability concept promoting responsibility.

Some six per cent of the Finnish dairy cows are fed with Benemilk feeds. They have established their position and the farms using Benemilk feeds are pleased with the added value received. Proagria’s milk yield monitoring has shown that with big cattles the two best farms out of three used Benemilk feeds.  

Raisioagro and Helsinki University conducted a study showing that a feed containing dehulled oat enhances the protein utilisation in cattle feeding. Based on the study, we developed Kestävää tuottavuutta (the Sustainable Productivity) concept promoting responsibility and launched Green feeds. Benemilk Green and Maituri Green feeds improve the protein utilisation and feed efficiency, and reduce methane formation. Kestävää tuottavuutta (The Sustainable Productivity) concept covers the whole lifecycle of a cow. The concept is based on even more accurate feeding and feed choices for different phases of production.

Raisioagro continues its investment in exports to Russia.

Together with a local reseller and a local dairy, Raisioagro built a cooperation model in Russia. The model is based on Raisioagro’s strong feeding expertise and consultative sales. Feeding expertise is on growing demand in Russia since the country is developing its own dairy production and investing in it more than before. The most exported items were Melli minerals. Compared to other business operations, exports were low, but Raisioagro’s feeding expertise, additional resources for exports and the location of Kouvola factory near the east board enable strong export growth also in future years.