Valorisation of a sustainable product

Van Loon Group is constantly striving to make the company and the supply chain more sustainable, whilst ensuring affordability for consumers. The efforts made by livestock farmers, Van Loon Group and other supply chain partners to improve sustainability should be rewarded in a fair and transparent manner.

The price and surcharges that Van Loon Group pays to livestock farmers within its own supply chain.

The price we are able to pay our livestock farmers depends in part on the willingness of consumers and customers to pay a fair price for sustainably produced food. Together with customers and supply chain partners, we develop innovative market concepts in which additional costs and savings are distributed fairly and transparently throughout the supply chain.
 
Livestock farmers within our own supply chain receive – depending on the number of stars – a fixed premium per animal supplied for the Beter Leven quality mark. The sustainability measures they take in the area of animal welfare are thus directly reflected in a better price for their product. For pig farmers, this involves a fixed premium per animal. In addition, pig farmers receive a supply chain premium and can earn additional incentives for extra efforts in the areas of animal health (such as antibiotic use, salmonella status and hygiene management) and animal welfare (such as not docking tails and the use of free-range farrowing pens). For cattle farmers, the sustainability surcharge is incorporated into the price.

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By 2025, all pig farmers will have joined the Van Loon Group’s new cost-price model, which is combined with a long-term purchase guarantee. The methodology behind this model was developed in consultation with our advisory group and operates on the basis of fixed quarterly prices. This provides pig farmers with a more stable income and reduces their exposure to price fluctuations on the global market. Furthermore, the cost-price system also includes an entrepreneurial income for the pig farmer, thereby reducing the risk of the farmer incurring a loss.

Our cost price model also anticipates upcoming changes in the area of animal welfare; pig farmers who have already chosen to build free-range farrowing pens receive financial compensation for this. The same applies to pig farmers who have stopped tail docking. The new criteria of the Beter Leven Quality Mark and health allowances have also been incorporated into the cost price model.

A cost price model has also been developed for ‘Rund op z’n Best’ for 2025. This will be further tested with the sounding board group in 2026. We will then introduce it in phases.

Using the Impact Fund provided by one of our clients, we are launching a pilot scheme to collect additional data via RFID ear tags. This data will enable pig farmers to improve their operational practices and make them more sustainable. Furthermore, the use of metal ear tags will no longer be necessary, which is beneficial for animal welfare.
 
Within the VoB chain, we will launch a module for sow farmers and a module for nature and the environment in 2026.
 
In addition, we aim to establish an innovation fund together with our chain partners to accelerate new developments within the chain.